How capital gains tax works in Andorra
In Andorra, capital gains are not all taxed the same way. Gains on shares and other financial assets generally fall into the IRPF savings base, where the first EUR 3,000 are exempt and the balance is taxed at 10%.
Some share disposals are exempt. The government says gains from the sale or redemption of shares are exempt when the seller does not exceed the 25% participation test during the prior 12 months.
Real-estate gains are usually taxed separately under the plusvàlua rules. The ordinary holding-period scale falls over time and reaches 0% after 10 years, but anti-speculation measures can impose higher rates in specified short-holding cases.
Property transactions need a current calculation. Transfer tax, the seller’s plusvàlua liability and any foreign-investment rules are separate questions, with exemptions and rates depending on the buyer, seller, property and holding period.
Tax rates at a glance
- Capital gains tax
- 0%-25%Asset dependent
- Share gains tax
- 0%-10%
- Real estate gains
- 0%-25%
- Savings allowance
- EUR 3,000
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsTradersHigh earnersFamily officesFounders
Watch out for
- Real-estate sales are the exception that changes the whole answer. A property sale can fall under the separate plusvàlua tax even when no ordinary IRPF capital-gains tax applies.
- Majority share sales can be taxable even though smaller share disposals can qualify for exemption.
- Foreign tax can still apply if the same gain is taxed in another country or if the asset is held through a foreign structure.
Frequently asked questions
Does Andorra have capital gains tax?
Yes, but not as one single flat tax on everything. Share gains usually fall under IRPF, while real-estate gains are taxed under the separate plusvàlua regime.
Are shares taxed in Andorra?
Share gains are generally taxable at 10% under IRPF once the EUR 3,000 savings allowance is exceeded, although some share disposals are exempt if the 25% ownership test is not breached.
Are property gains taxed in Andorra?
Yes. Real-estate gains are taxed separately. The ordinary scale declines with the holding period and reaches 0% after 10 years, but specific anti-speculation rules can produce higher rates in short-holding cases.