Tax system in Andorra
Andorra taxes residents on worldwide income through IRPF, but keeps the headline burden low. The first EUR 24,000 of general income is exempt, income from EUR 24,001 to EUR 40,000 is effectively taxed at 5%, and income above EUR 40,000 is taxed at 10%.
There is no standalone wealth tax or inheritance tax in Andorra. The main practical taxes to watch are IGI VAT at 4.5% generally, CASS payroll contributions, corporate tax at 10%, and real-estate transaction taxes including the 2026 foreign investment property levy.
Tax rates at a glance
- Income tax
- 0%-10%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- 0%-15%
- Corporate tax
- 10%
- Dividend tax
- 0%-10%
- IGI VAT
- 4.5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHigh earnersInvestorsExpatsHolding companies
Watch out for
- Andorra is low-tax, not no-tax. IGI VAT, CASS contributions, municipal taxes, transfer taxes and business filing duties still matter.
- Foreign-investment real-estate tax is progressive and can range from 3% to 10% depending on the investment. Property-heavy structures need a fresh review of the applicable band and exemptions.
- Cross-border taxpayers still need treaty paperwork, residence evidence and source-of-funds records when banks or foreign authorities ask.
Frequently asked questions
Is Andorra a tax-free country?
No. Andorra is low-tax, but residents still face income tax above the exemption band, corporate tax for companies, IGI VAT, CASS payroll contributions and property-related taxes.
Does Andorra have wealth or inheritance tax?
No. Andorra does not levy a standalone net wealth tax or inheritance tax.
What is the main tax rate in Andorra?
The main headline rates are 0%-10% for IRPF, 10% for standard corporate tax and 4.5% for IGI VAT.