Andorra
Taxes, residence and daily life for people moving to Andorra: for a wealthy family, an expat employee and a remote worker. Researched .
Open Andorra in the interactive guide
At a glance
For an EU-citizen family of five living off a €30M portfolio, the guide's default reader. The interactive guide recomputes everything for other passports and situations.
- Score for a wealthy family
- 76 / 100
- Can EU citizens live here?
- from €1,000,000 · Passive residence (residència sense activitat lucrativa)
- Can US citizens live here?
- from €1,000,000 · Passive residence (residència sense activitat lucrativa)
- Other passports
- from €1,000,000 · Passive residence (residència sense activitat lucrativa)
- Tax on a €30M portfolio
- €48,600 a year
- Wealth tax
- none
- Children inherit
- tax-free
- After 60 years
- €218,196,000 of €30,000,000 (with no tax at all: €286,928,000)
- Living costs, family of five
- €244,608 a year
- EU member
- no
- Currency
- EUR
- Capital
- Andorra la Vella
Tax on investments, inheritance and wealth
Personal income tax (IRPF) at a maximum 10%. Gains on listed or unlisted shares are exempt unless the seller (with family) held more than 25% in the prior 12 months, and even then exempt after 10 years of ownership; gains on investment fund units are exempt. Dividends from Andorran companies are exempt; foreign dividends are taxed at 10% with credit for foreign withholding (first EUR 3,000 of savings income exempt). No inheritance, gift or wealth tax. Andorran real estate gains fall under a separate real estate capital gains tax (1%-15%); foreign real estate gains are exempt after 10 years.
- Ordinary tax residence: IRPF (Llei 5/2014) on worldwide income: general rate 10%, with a 5% effective rate on the EUR 24,000-40,000 band delivered via a credit. Savings income base reduced by a EUR 3,000 allowance.
Income tax for employees and remote workers
IRPF is a flat 10% on the general base after a EUR 24,000 personal minimum, minus a bonus of 50% of the tax on that base capped at EUR 800, so the effective marginal rates are 0% to EUR 24,000, 5% from EUR 24,000 to 40,000 and 10% above. Employees pay 6.5% CASS (pensions 3.5% + general 3%); the self-employed 22% of a chosen base, ceiling EUR 3,674.72 a month.
How to get residence
Andorra is outside the EU and EU citizens have no free movement there: everyone needs a permit. The main route for people who do not work is passive residence, which since Law 2/2026 requires an investment of EUR 1,000,000 in Andorran assets (or EUR 800,000 in a home) plus a non-refundable EUR 50,000 payment, and 90 days a year in Andorra. Working and self-employed permits are quota-limited.
| Route | Kind | Who | Status | In short |
|---|---|---|---|---|
| Passive residence (residència sense activitat lucrativa) | Investor residence | EU citizens, US citizens, other passports | open | A residence permit without the right to work, for people who invest EUR 1,000,000 in Andorran assets or buy a home, pay a non-refundable EUR 50,000 and spend at least 90 days a year in Andorra. |
| Active residence: employment or self-employment | Work | EU citizens, US citizens, other passports | open | Foreigners can live and work in Andorra with an employment or self-employment permit; the number of permits is limited by quota. |
| Digital nomad residence permit | Digital nomad | EU citizens, US citizens, other passports | open | A special residence permit for remote workers employed by a foreign company, reported to be available since 2023 under Law 42/2022. |
Citizenship: Reported 20 years of continuous residence for ordinary naturalisation (earlier research, not re-verified this session).
Inheritance law and trusts
Andorran law protects children (or parents if there are none) with a reserved quarter of the estate. It is not in the EU. Trusts are not recognised, and only public-interest foundations are allowed. Several points rest on secondary sources only.
Daily life, scored out of 100
From public indicators (World Bank, UNDP, Transparency International and others); higher is better.
| Measure | Score |
|---|---|
| Safety and personal security | 68 |
| Political and institutional stability | 76 |
| Legal system and property rights | 77 |
| Healthcare quality and access | 85 |
| Human development and quality of life | 83 |
| Infrastructure and connectivity | 94 |
| Cost of living and housing | 70 |
| Business opportunities and economy | 79 |
Research notes
Andorra — family-office tax dossier
Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser
Summary
- Personal income tax (IRPF) is at most 10%.
- Gains on shares are exempt for holdings of 25% or less (with a 12-month look-back, family holdings aggregated). A holding above 25% is also exempt once owned for 10 years. Fund units are exempt.
- Dividends from Andorran companies are exempt. Foreign dividends are taxed at 10% with a foreign tax credit, and the first EUR 3,000 of savings income is exempt.
- No inheritance, gift or wealth tax.
Residence and eligibility
- Tax resident if in Andorra more than 183 days, or if the main centre of economic interests is in Andorra (e-tràmits IRPF page).
- Residence permits: passive residence (an investment plus a deposit with the AFA, at least 90 days a year) or active residence. The amounts are not verified.
Capital gains
The Guia pràctica de l'IRPF 2025 (Govern d'Andorra), "Rendes exemptes", restating Llei 5/2014, says:
- Gains on collective investment undertakings are exempt.
- Gains on shares are exempt if the holding (aggregated with related entities and family up to the third degree) was not above 25% in the 12 months before the sale. Above 25%, they are exempt if owned for at least 10 years.
- The exemption is excluded for companies whose assets are at least 50% Andorran real estate.
- Foreign real estate is exempt after 10 years.
- Andorran real estate pays the separate plusvàlua tax at 1%-15% (Altres impostos page). The schedule is not verified, so the JSON leaves it null.
- JSON: securities 0, private business 0 (more than 25% held for 10 or more years), foreign real estate 0. Headline 0.10.
Dividends
- Andorran dividends are exempt if the payer is subject to Andorran corporate tax (IS).
- Foreign dividends are taxable at 10% with a deduction for international double taxation (guide).
- EUR 3,000 savings allowance.
- JSON: domestic 0, foreign 0.10 with credit.
Inheritance and gifts to children
- Inheritances and donations are outside the scope of IRPF.
- Gains revealed on death are exempt.
- No inheritance or gift tax is listed among state or communal taxes.
- Gifts of real estate between relatives up to the third degree are exempt from plusvàlua. Transfers of shares between relatives up to the third degree are exempt from ITP.
- JSON: basis none, fully_exempt.
Wealth tax
- None.
- Property transfer tax (ITP) is 4%.
- A vacant-dwelling tax of EUR 5.05/m2 applies to homes left empty for more than 2 years.
Special regimes
None. The ordinary regime is already low-tax.
Company taxation (kept separate from personal tax)
- Corporate tax (IS) is 10%.
- Andorran collective investment institutions pay 0%.
- Holding, IP and consolidation regimes exist (e-tràmits IS page).
Cost of living notes
- Andorra la Vella / Escaldes-Engordany.
- Prime rent: EUR 6,500 a month = median of the 6 distinct houses with 4+ bedrooms listed for rent on Pisos.ad on 2026-10-15 (EUR 3,000 Canillo, 3,500 Pal, 5,000 Aixirivall, 8,000 Erts, 9,100 Andorra la Vella, 10,000 Encamp; two apparent duplicates removed). Very small sample.
- School: Agora Andorra International School, IB Diploma EUR 14,150 a year (2026-27), plus EUR 1,100 admission, EUR 435 annual reservation and EUR 2,010 lunch. The school says its prices exclude taxes.
- Purchase price, health insurance and housekeeper costs are not sourced.
Open questions
- Passive residence amounts.
- Measures on property purchases by non-residents in 2024-2026.
- The plusvàlua schedule.
- The treaty list.
- The 2026 edition of the IRPF guide was not checked.
- Rent rests on 6 listings; purchase price, health insurance and housekeeper costs not sourced.
Sources
- Govern d'Andorra, Guia pràctica de l'IRPF 2025: https://www.govern.ad/documents/d/guest/guia_irpf
- Govern d'Andorra, IRPF e-tràmits: https://www.e-tramits.ad/tramits/impostos/irpf
- Govern d'Andorra, IS e-tràmits: https://www.e-tramits.ad/tramits/impostos/is
- Govern d'Andorra, Altres impostos: https://www.govern.ad/ca/tematiques/impostos-taxes-i-duana/impostos-en-andorra/altres-impostos
- Pisos.ad, houses for rent with 4+ bedrooms: https://www.pisos.ad/lloguer/cases/tots-subtipus?&minRooms=4&minBanys=0&maxRooms=0&maxBanys=0&minMetres=0&minPrice=0&maxPrice=0&reference=&caracteristiques=&order=&immo=0&parro=&promocions=False
- Agora Andorra International School, School Fees 2026-2027: https://andorra.agorainternationalschool.es/fs/resource-manager/view/2a6be333-c646-400d-b741-eb5a29b0a9c8
Change log
- 2026-10-15: initial research.
- 2026-10-15 (data-quality pass): added prime rent (Pisos.ad, EUR 6,500/month, 6 listings) and Agora Andorra IB fee (EUR 14,150).
- 2026-10-15: family rent re-checked against the upper-middle-class standard: kept.
Residence and succession sources
- New Law 2/2026 introduces major changes in immigration, foreign investment and taxation — BDO Andorra
- Andorra Raises Passive Residency Investment to EUR 1M in Omnibus Law — Alto.ad
- Impost sobre la renda de les persones físiques (IRPF) — Govern d'Andorra
- Does Andorra have a Golden Visa? Passive residency and real estate investment 2026 — Andorra Insiders
- Andorra digital nomad residence permit (summary of Law 42/2022) — Andorra Solutions
- Successions in Andorra (UINL) — International Union of Notaries
- Act 46/2014 on succession to the estates of the deceased — Morabanc
- HCCH status table: 1985 Trusts Convention — Hague Conference on Private International Law
Tax sources are cited in the research notes above.