How wealth tax works in Andorra
Andorra does not have a recurring wealth tax for individuals. Cash, securities, private-company shares, crypto holdings and foreign assets are not taxed annually just because you own them.
The practical burden is transactional, not balance-sheet based. Real-estate transfers can trigger plusvàlua or ITP charges, Andorra’s IGI VAT is generally 4.5%, and foreign-investor property acquisitions can be subject to the separate progressive foreign-investment levy.
Tax rates at a glance
- Net wealth tax
- 0%Zero
- Net worth tax
- 0%
- Annual asset tax
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsHigh earnersFamily officesRemote foundersHoldco owners
Watch out for
- A zero wealth-tax bill does not mean zero paperwork. Banks and brokers can still ask for source-of-funds, tax-residence and AML documentation.
- Real estate is the main wealth-planning exception in Andorra. The foreign-investment property levy is progressive, so check the applicable 3%–10% band and any exemption before buying.
- If you are tax resident elsewhere, your home country may still tax the same assets or investment income even though Andorra does not.
Frequently asked questions
Does Andorra have wealth tax?
No. Andorra does not levy a standalone net wealth tax or annual tax on personal assets.
Are foreign assets taxed in Andorra?
Not merely because you own them. Andorra does not impose a wealth tax on foreign bank accounts, portfolios or real estate, but other countries may.
Is Andorra good for investors?
It can be, because there is no wealth tax and no inheritance tax. Investors still need to plan for capital gains rules, property taxes, IGI VAT and foreign tax residence.