v256.0 · tax residency · AD · verified 2026-04
Andorra tax residency
Rules that determine when you become tax-resident in Andorra, the headline rates, and any HNW or expat special regime that softens the standard system.
Threshold
183 days/year
Taxation basis
worldwide (low rate)
Top marginal rate
10% above €40K
Capital gains
10% on most gains; 0% on holdings >25% held >10 years
Special regime: Low flat-rate IS the regime
No special HNW regime needed — top rate already 10% for residents. Two residence categories: ACTIVE — work + earn income in Andorra; PASSIVE — €600K deposit/investment in Andorra + spend ≥90 days/year. Active residents file Andorra IS (Imposto sobre la Renda) on worldwide income at progressive 0-10%. Passive residents NOT subject to Andorran income tax on foreign income (de facto territorial for passive holders).
Rate landscape
| Dividends tax | 0% on Andorran-resident-company dividends; 10% on foreign dividends |
| Exit tax | No exit tax |
| Tax treaty network | 12 jurisdictions |
| CRS (automatic info exchange) | Active since 2018 |
Recent regime changes (2023-2026)
EU Association Agreement under negotiation 2024-26 — could open EU labour market access. CRS active since 2018. Property prices climbing rapidly post-Covid as low-tax migration wave continues.
Strengths
Drawbacks
- Very small treaty network (12) — limited treaty access
- €600K passive-residence deposit ties up capital
- Small country — limited services, banking inventory, professional network
- Not in EU — no automatic EU passport pathway
- CRS active since 2018 — no more secrecy advantages
Top cities for tax-residency seekers
Andorra la Vella Escaldes-Engordany La Massana
Source: official Andorra tax authority page · Last verified 2026-04
See also: full Andorra country profile · full tax-residency atlas