# Andorra: taxes, residence and cost of living

Source: https://domicile.wiki/places/andorra/ (domicile.wiki, researched 2026-10-15). Data licence CC BY-SA 4.0. Research, not tax or legal advice.

## At a glance

For an EU-citizen family of five living off a EUR 30M portfolio (the guide's default reader).

- 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

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.

- **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 (0-100, higher is better)

- 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](https://www.bdo.es/en-gb/microsites/andorra-actualitat/publicaciones/nova-llei-2-2026-canvis-clau-en-materia-d%E2%80%99immigracio,-inversio-estrangera-i-fiscalitat) — BDO Andorra
- [Andorra Raises Passive Residency Investment to EUR 1M in Omnibus Law](https://www.alto.ad/business/2026/01/andorra-raises-passive-residency-investment) — Alto.ad
- [Impost sobre la renda de les persones físiques (IRPF)](https://www.e-tramits.ad/tramits/impostos/irpf) — Govern d'Andorra
- [Does Andorra have a Golden Visa? Passive residency and real estate investment 2026](https://andorrainsiders.com/en/?p=10204) — Andorra Insiders
- [Andorra digital nomad residence permit (summary of Law 42/2022)](https://www.andorra-solutions.com/?p=17872) — Andorra Solutions
- [Successions in Andorra (UINL)](https://uinl.org/en_GB/sucesiones-en-europa/andorra) — International Union of Notaries
- [Act 46/2014 on succession to the estates of the deceased](https://morabanc.ad/en/?p=13458) — Morabanc
- [HCCH status table: 1985 Trusts Convention](https://www.hcch.net/en/instruments/conventions/status-table/?cid=59) — Hague Conference on Private International Law