How dividend tax works in Andorra
Qualifying dividends from Andorran companies are exempt for resident individuals when the distributing company is subject to Andorran corporate tax. The official IRPF guide says those dividends are not included in the return.
Foreign dividends are different. They do not qualify for the domestic exemption and are taxed under the IRPF savings base, which gives a first EUR 3,000 exemption and then applies 10%.
If foreign withholding tax was already suffered, Andorra allows a credit up to the Andorran tax that would otherwise have been due, so treaty paperwork and broker statements matter.
Andorra does not have a separate blanket dividend-tax regime. The practical answer depends on where the dividend came from, whether the payer was subject to Andorran corporate tax, and whether the taxpayer is resident in Andorra.
Tax rates at a glance
- Dividend withholding tax
- 0%Domestic qualifying dividends
- Domestic dividend tax
- 0%
- Foreign dividend tax
- 0%-10%
- 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.
InvestorsHolding companiesRemote foundersFamily officesHigh earners
Watch out for
- Foreign-source dividends can still be hit by source-country withholding tax before they reach Andorra.
- Residents should keep dividend statements, foreign-tax proofs and broker records so they can claim the correct foreign tax credit.
- The Andorra-UK income and capital tax treaty entered into force for Andorran application on 1 January 2026, which matters for cross-border dividend planning.
Frequently asked questions
Does Andorra tax dividends?
Qualifying dividends from Andorran companies are generally exempt for resident individuals, but foreign dividends are usually taxed under the IRPF savings base.
Does Andorra have dividend withholding tax?
Andorra does not impose a separate blanket dividend tax on qualifying domestic dividends. Foreign withholding tax can still happen in the source country.
Are foreign dividends taxed in Andorra?
Yes, usually at 10% after the EUR 3,000 savings allowance, with credit relief possible for foreign tax already paid.