Andorra vs Monaco taxes (2026): income tax, company tax and VAT

Andorra vs Monaco tax rates at a glance

Tax	🇦🇩 Andorra	🇲🇨 Monaco
Income tax	Personal income tax: 0%-10% Salary tax: 0%-10% Foreign income tax: 0%-10% Savings income tax: 10% Employee CASS: 6.5% Employer CASS: 15.5%	Personal income tax: 0% Highest bracket tax: 0% Employee social insurance: 6.85% Employer social insurance: 13.40% Foreign income tax: 0% Tax on wages: 0%
Corporate tax	Corporate profits tax: 10% Standard company tax: 10% Investment entity tax: 0% Non-resident PE tax: 10%	Corporate profits tax: 0% / 25% Standard company tax: 25% Foreign turnover test: >25% New business relief: 0% years 1-2
Capital gains tax	Capital gains tax: 0%-25% Share gains tax: 0%-10% Real estate gains: 0%-25% Savings allowance: EUR 3,000	Capital gains tax: 0% Share gains: 0% Property gains: 0% Crypto gains: 0%
Dividend tax	Dividend withholding tax: 0% Domestic dividend tax: 0% Foreign dividend tax: 0%-10% Savings allowance: EUR 3,000	Dividend withholding tax: 0% Domestic dividend tax: 0% Foreign dividend tax: 0%
Wealth tax	Net wealth tax: 0% Net worth tax: 0% Annual asset tax: 0%	Net wealth tax: 0% Net worth tax: 0% Annual property tax: 0% Council tax: 0%
Inheritance / estate tax	Inheritance tax: 0% Estate tax: 0% Gift tax: 0% Probate tax: 0%	Inheritance tax: 0% to 16% Spouse and direct descendants: 0% Brothers and sisters: 8% Unrelated beneficiaries: 16%
VAT / GST / sales tax	IGI VAT: 4.5%	VAT: 20%
Standard VAT / IGI	4.5% IGI	20% VAT
General personal income tax	Up to 10%	0% for most residents

Who wins on each tax

Personal income taxMonaco

Monaco has no general personal income tax for most residents; Andorra taxes income at low rates up to 10%.

Corporate taxAndorra

Andorra's standard corporate rate is 10%; Monaco can tax in-scope business profits at 25%.

Capital gains taxMonaco

Monaco has no general personal capital gains tax; Andorra can tax gains under its income tax rules.

VAT / consumption taxAndorra

Andorra's 4.5% IGI is far below Monaco's French-aligned 20% VAT.

AccessibilityAndorra

Andorra is usually more accessible on living costs and residence planning.

The verdict

Monaco is hard to beat for personal tax if you are not a French national caught by the special French rules. It has no general personal income tax, no general personal capital gains tax and no net wealth tax.

Andorra is not zero-tax, but it is more balanced. Personal income tax and corporate tax are capped around 10%, the IGI consumption tax is 4.5%, and residence is usually more accessible than Monaco's high-cost, bank-led process.

Choose Monaco if you can afford it and the priority is maximum personal-tax efficiency with prestige. Choose Andorra if you want a practical European low-tax base with modest rates, lower costs and cleaner company taxation.

How to read this comparison

Andorra and Monaco are both small European low-tax jurisdictions, but the feel is different. Monaco is the premium 0% personal-tax base; Andorra is the practical low-rate base.

Which one fits you

🇦🇩 Choose Andorra if you're a…

Entrepreneurs wanting low but real European taxation
Residents who want lower living costs than Monaco
Companies comparing ordinary corporate tax and consumption tax

🇲🇨 Choose Monaco if you're a…

Ultra-high-net-worth residents
People prioritising 0% personal tax and prestige
Investors who can satisfy Monaco's banking and housing expectations

Frequently asked questions

Is Andorra or Monaco better for tax?

Monaco is better for pure personal tax because it has no general personal income tax for most residents. Andorra is often better for practical low-tax living, company tax and lower consumption tax.

Does Andorra have income tax?

Yes. Andorra has personal income tax, but the top rate is low by European standards and generally capped around 10%.

Does Monaco tax companies?

Monaco does not tax every company, but businesses with more than 25% of turnover outside Monaco and certain IP-related income can fall under business profits tax at 25%.