Tax residency in Andorra
Last updated
10% maximum income tax. No wealth tax. No inheritance tax. But only if you can prove you actually live here.
Quick facts · Andorra
- Income Tax (IRPF) 0–10% (max)
- Residency threshold 183 days / year (active)
- Key permit Passive Residency
- Corporate tax 10% flat
- VAT (IGI) 4.5%
- Treaty network Limited (growing)
Where it sits
A microstate in the Pyrenees with one of Europe's most competitive tax regimes.
Andorra draws entrepreneurs, freelancers, and high-net-worth individuals with 10% income tax, zero wealth tax, and zero inheritance tax. But Andorran authorities watch genuine presence closely — and the burden of proof is on you.
- Top rate
10% income tax
Progressive: 0% up to EUR 24,000 · 5% from EUR 24,001–40,000 · 10% above EUR 40,000. One of the lowest top rates in Europe.
- Zero taxes
No wealth, no inheritance
No wealth tax. No inheritance tax. No gift tax. Dividends from Andorran companies benefit from a 0% participation exemption.
- Corporate
10% flat rate
Competitive flat corporate rate for Andorran companies. A 4.5% IGI (equivalent to VAT) is one of the lowest consumption taxes in Europe.
- The rule
183 days active
Active residents must spend 183+ days per calendar year in Andorra. A hard floor: fall below it and you risk permit revocation.
- Status
EU-adjacent, not EU
Schengen associate. European proximity without full EU regulation. The DTF enforces residency independently from Spain and France.
- Population
~80 000 people
Small, stable principality. Limited DTA network — but growing. Cross-border scrutiny from Spain is significant and well-documented.
Routes in
Residency permits
Andorra offers several pathways to residency, each with different requirements for investment, physical presence, and economic activity. The type of permit you hold determines your day-count obligations.
- Self-employed
Active residency (self-employed)
For entrepreneurs and freelancers operating in Andorra. Requires a EUR 50,000 deposit with the Autoritat Financera d'Andorra (partially non-refundable under Omnibus 2), participation in an Andorran company, and a minimum of 183 days in-country per year. Processing time: 4–6 months.
- Employee
Active residency (employee)
For workers employed by an Andorran company. No deposit required. Minimum 183 days stay. The company must exist and genuinely operate in Andorra, with a valid contract under Andorran employment law.
- Omnibus 2 · Feb 2026
Passive residency (investor/retiree)
For investors and retirees. Updated under the Omnibus 2 Law (February 2026): minimum investment raised to EUR 1,000,000 (from EUR 600,000), with only 90 days of minimum stay — but 90 days does not automatically make you tax resident. A dangerous gap: another country may still claim you.
- Remote work
Digital nomad permit
For remote workers employed by non-Andorran companies. No deposit required. Initial 2-year permit, renewable. Must demonstrate sufficient income (approximately 300% of Andorran minimum wage, ~EUR 4,500/month). Growing category since 2023.
The numbers
Tax rates
Andorra's progressive income tax tops out at 10%, with generous exemptions and no taxes on wealth, inheritance, or gifts.
Personal income (IRPF Andorra) is taxed on a three-band scale: 0% on the first EUR 24,000, 5% on EUR 24,001–40,000, and 10% on everything above EUR 40,000. Corporate income is taxed at a flat 10%. Capital gains are also taxed at 10%. Dividends received from Andorran companies benefit from a participation exemption and are taxed at 0%. There is no wealth tax, no inheritance tax, and no gift tax. The IGI (Andorra's VAT equivalent) sits at just 4.5% — among the lowest consumption taxes in Europe.
The gap to Spain and France is stark. Spain's top combined marginal rate reaches 47–54% depending on the autonomous community. France peaks at 45%. Against that, Andorra's 10% ceiling — on a worldwide basis for residents — is what drives the inflows. The price is genuine presence, and that price is enforced.
Maximum personal income tax rate: Andorra vs neighbours
Maximum marginal rates on personal income (2026)
How Andorra enforces genuine presence
The Departament de Tributs i de Fronteres (DTF) has tightened enforcement since 2025. A residency card is not enough — the system is effectively prove you live here or lose your permit.
What the DTF sees
- Entry/exit data — cross-referenced border records from Andorra's land-only crossings with Spain and France.
- Police verification visits to registered addresses. Officers check if the apartment is occupied and furnished. Neighbour complaints count.
- Bank account activity monitored. Dormant accounts or minimal local spending raise red flags with the DTF.
- Low-activity company checks — minimal revenue or no employees triggers scrutiny; your active residency permit can be revoked.
- Centre of vital interests — where is your family, your main business activity, your economic ties? Day counting is one criterion, not the only one.
What you can prove
- A certified record of where you actually were, each day, that the DTF or another authority can independently verify.
- Continuous evidence that demonstrates genuine presence — documented days, not a single annual stamp.
- Proof that breaks cross-border claims from Spain or France — that you were in Andorra, not in your prior country.
- Documentation that shifts the argument from your word to the record.
The burden of proof is on you. The only question is whether you have the proof.
Risks
What can go wrong
Andorra's tax advantages are real, but so are the enforcement mechanisms. These are the most common traps.
The passive residency gap is the biggest risk. You can hold passive residency, spend exactly 90 days in Andorra, and another country may still claim you as their tax resident. If you spend 90 days in Andorra and 120 days in Spain, Hacienda will argue you are their tax resident — and the Andorran permit does not override Spain's claim. Beyond day counting, the DTF evaluates your centre d'interessos vitals: where your family lives, where your main economic activity is, where your bank accounts are.
Catalan proficiency is now expected. Since 2025, basic Catalan proficiency (A1-A2 level) is increasingly required for permit renewals. Free courses are available through the Servei de Politica Lingüística — start before you apply.
- Presence
Minimum stay non-compliance
Falling below 183 days (active) or 90 days (passive) can trigger permit revocation and back-tax claims from your previous country of residence.
- Company
Low company turnover
The DTF flags inactive businesses (societats amb baixa activitat). If your Andorran company has minimal revenue or no real operations, your active residency permit may be revoked.
- Investment
Investment maintenance
Passive residents must maintain their EUR 1,000,000 investment continuously. Withdrawing or reducing the investment puts your permit at immediate risk.
- Verification
Negative police reports
Neighbour complaints about empty apartments, police visits finding no one home, and social reports are all used as evidence for permit revocation.
- Spain
Spanish exit tax (art. 95 bis)
Individuals leaving Spain for Andorra may face an exit tax on unrealised capital gains if they held significant assets (EUR 4M+ or 25%+ of a company worth EUR 1M+). Hacienda actively pursues these cases.
Your solution
How ResidenceSafe helps in Andorra
Purpose-built tools for Andorran residents who need to prove they actually live here — to the DTF, to Hacienda, or to any authority that challenges your move.
- Track
Smart day counting
Automatic tracking with 183-day and 90-day smart alerts. Know exactly where you stand against both thresholds at any point in the year.
- Certify
Certified evidence for DTF audits
Blockchain-certified records of your physical presence. Each check-in is biometrically verified, geolocated, and timestamped with eIDAS 2 compliance.
- Report
Renewal documentation
Generate proof of physical presence reports for permit renewals — documented evidence your permit authority can verify independently.
- Defend
Counter Spanish Hacienda claims
Prove you genuinely left Spain and live in Andorra. Certified presence records defend against exit-tax and dual-residency claims from cross-border authorities.
- Languages
eIDAS 2 reports in four languages
Download certified reports in Catalan, Spanish, French, or English — legally recognized across the EU under eIDAS 2 regulation.
Calendar
Key dates and deadlines
Andorra's tax year runs January 1 to December 31. Filing deadlines are set by the DTF.
- Dec 31 End of tax year — day count closes for active residency (183-day threshold)
- Mar 31 Personal income tax return (IRPF Andorra) filing deadline
- Ongoing Passive residents must maintain EUR 1,000,000 investment continuously (Omnibus 2 Law)
- Renewal Permit renewals require documented proof of physical presence and, since 2025, Catalan A1-A2 proficiency
- On move If leaving Spain: Spanish exit-tax obligations under art. 95 bis trigger immediately for qualifying asset holders
FAQ
Frequently asked questions
How many days do I need to spend in Andorra for tax residency?
Active residents (self-employed or employed) must spend a minimum of 183 days per calendar year in Andorra. Passive residents are only required to spend 90 days, but this does not automatically confer tax residency. The Departament de Tributs i de Fronteres (DTF) also evaluates your centre of vital interests, including family ties, economic activity, and banking.
What is the difference between active and passive residency in Andorra?
Active residency is for people who work in Andorra, either as self-employed or employed by an Andorran company. It requires 183 days minimum stay and, for self-employed applicants, a EUR 50,000 deposit (partially non-refundable under Omnibus 2). Passive residency is for investors and retirees. Under the Omnibus 2 Law (February 2026), it requires a EUR 1,000,000 minimum investment and only 90 days of presence, but does not automatically make you tax resident.
Can Spain still tax me after I move to Andorra?
Yes. Under Article 95 bis of the Spanish Income Tax Law, Spain can apply an exit tax on unrealised capital gains if you held more than EUR 4 million in assets or significant shares in Spanish companies. Spain may also challenge your move if you cannot prove genuine relocation, especially during the first few years. Building certified presence records is essential for defending against Hacienda claims.
What happens if I don't meet the 183-day minimum?
Failure to meet the 183-day minimum for active residency can result in permit revocation, loss of tax residency status, and potential back-tax claims from other jurisdictions. The DTF cross-references entry/exit data, utility consumption, and banking activity to verify genuine presence. Even passive residents who fail to meet the 90-day minimum risk losing their permit entirely.
Do I need to speak Catalan to maintain residency in Andorra?
Catalan is the sole official language of Andorra. While not historically enforced for residency, since 2025 authorities have increasingly expected basic Catalan proficiency (A1-A2 level) for permit renewals. It is strongly recommended to begin learning before applying. Free courses are available through the Servei de Politica Lingüística.
How does the Omnibus 2 Law (2026) change passive residency?
The Omnibus 2 Law, effective February 2026, increased the minimum investment for passive residency from EUR 600,000 to EUR 1,000,000. The minimum stay remains 90 days. Passive residents must maintain their investment continuously, and the 90-day stay does not automatically confer tax residency, creating a dangerous gap where another country could still claim you as tax resident. Existing passive residents may need to adjust their investment to comply.
Sources. Based on official sources as of February 2026: Departament de Tributs i de Fronteres (DTF), Govern d'Andorra, Butlletí Oficial del Principat d'Andorra (BOPA) (Llei de l'IRPF, Omnibus 2), Servei d'Immigració.
Disclaimer. This guide is for general information only, based on publicly available information as of February 2026. Tax laws, visa requirements, residency rules, and investment thresholds in Andorra change frequently. It does not constitute legal, tax, or immigration advice — always consult a qualified professional for your specific situation.
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