Europe
Andorra tax rates 2026
One of Europe's lowest-tax jurisdictions. Personal and corporate income is capped at 10%, VAT sits at 4.5%, and there is no wealth, inheritance or gift tax.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 10%Progressive, at 0%, 5% and 10%. The first EUR 24k is exempt, and the 10% rate only applies above EUR 40k. |
|---|---|
| Corporate income | 10% |
| Capital gains | Portfolio gains are generally exempt for holdings below 25%. Property gains are taxed 1–15% on a sliding scale, and become exempt after 10 years. |
| VAT / IGI | 4.5% |
| Dividends (WHT) | 0%, since domestic dividends are exempt. |
| Interest (WHT) | 0% |
| Royalties (WHT) | 5% |
| Social security (employee) | 6.5% |
| Social security (employer) | 15.5% |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Only minimal municipal, or comú, taxes apply. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Participating
A special regime for new arrivals
None needed. The ordinary regime is the incentive. IGI (VAT) is 4.5%, and corporate tax is 10%.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Andorra
The residency and citizenship routes that lead here, weighed against the tax picture above.