How income tax works in Andorra
Andorra’s personal income tax is called IRPF. Residents are taxed on worldwide income, while non-residents are taxed separately under IRNR on Andorra-source income.
The general base is progressive. Income up to EUR 24,000 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%. Savings income has a separate 10% rate after the first EUR 3,000.
Salaried workers still have payroll costs. Employee CASS contributions are generally 6.5% and employer CASS contributions are generally 15.5%, so take-home pay can differ from the headline IRPF rate.
Not every taxpayer needs to file. The government says no IRPF return is required in several common cases, including exempt income, income subject to withholding, and salaries plus rental income below EUR 24,000.
Income tax brackets in Andorra
| Bracket | Rate | Notes |
|---|---|---|
| General income up to EUR 24,000 | 0% | Minimum exempt amount. |
| General income EUR 24,001 to EUR 40,000 | 5% | Effective rate after the 50% bonus on the 10% statutory rate. |
| General income above EUR 40,000 | 10% | Standard top rate. |
| Savings income up to EUR 3,000 | 0% | First EUR 3,000 of savings income is exempt. |
| Savings income above EUR 3,000 | 10% | Applies to capital mobiliari and capital gains. |
Tax rates at a glance
- Personal income tax
- 0%-10%Progressive
- Salary tax
- 0%-10%
- Foreign income tax
- 0%-10%
- Savings income tax
- 10%
- Employee CASS
- 6.5%
- Employer CASS
- 15.5%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHigh earnersExpatsDigital nomadsInvestors
Watch out for
- Tax residence matters. Andorra generally treats you as resident if you spend more than 183 days in the country or if your main economic interests are there.
- Residents can still owe tax on foreign salary, investment and business income, even though the rates are low.
- The 2026 filing window for the prior tax year runs from 1 April to 30 September, so payroll and investment records need to be ready early.
Frequently asked questions
Do expats pay income tax in Andorra?
If they are Andorran tax residents, yes, under the IRPF rules and the 0%-10% progressive scale. Non-residents are taxed under IRNR on Andorra-source income instead.
How do I become tax resident in Andorra?
The main tests are spending more than 183 days in Andorra in the calendar year or having the center of your economic interests there.
Is salary tax-free in Andorra?
Not always. Salary is exempt up to EUR 24,000 of general income, then taxed progressively, and CASS payroll contributions still apply.