Tax Residency in Andorra
Requirements and Benefits.
Information updated in 2026
Here you’ll find answers to everything you need to know to obtain your tax residency—whether active or passive—in the Principality of Andorra, quickly and legally.
This detailed guide, prepared by the team of tax consultants at Advantia Assessors, analyzes the requirements set by the Government of Andorra and the Andorran Financial Authority (AFA), the different ways to obtain your permit (active or passive residency), and the key guidelines for making a safe tax transition without conflicts arising from dual residency.
How Do I Obtain Tax Residency in Andorra?
For an individual to be considered a tax resident of the Principality of Andorra for all legal purposes, they must meet at least one of the three main criteria established by Andorran law and the Double Taxation Agreements (DTA):
Length of Stay Criteria (Days of Stay)
- Active Tax Residency: Requires staying in Andorran territory for a minimum of 183 days per calendar year.
- Passive Tax Residency (Without Gainful Activity): Requires establishing actual residence in Andorra for a minimum of 90 days per year.
Economic Interests Center Criteria
A taxpayer is considered to be tax resident in Andorra when the principal center or base of his or her business, professional, or economic interests is located, directly or indirectly, within Andorran territory.
Vital Interests Center Criteria
There is a legal presumption of tax residency in Andorra when the spouse (who is not legally separated) and/or minor children who are financially dependent on the applicant habitually reside in the Principality.
Official Accreditation:
Meeting these criteria allows you to apply for the Certificate of Tax Residence issued by the Department of Taxes and Borders of the Government of Andorra, the official document required to process your tax deregistration in your country of origin and avoid double taxation.
Ways to Establish Tax Residency in the Principality
| Fiscal Modality | Method of Acquisitio | Minimum Stay | Financial Requirement / Investment |
|---|---|---|---|
| Active Tax Residence | Setting up a company (>34%) or self-employment. | 183 days / year | €50,000 non-repayable grant from the Andorran Financial Authority (AFA) + active business. |
| Passive / Non-Profit Residence | Wealth or income-generating investment. | 90 days / year | €1,000,000 investment (or €800,000 / €400,000 in property/funds) + a non-repayable grant of €50,000 from the Andorran Financial Authority (AFA) (+€12,000 per person in charge). |
| International Interest | Professionals with an international profile, sportspeople or creative professionals. | 90 days / year | Demonstrate that at least 85 per cent of the services provided for scientific, cultural or sporting reasons are used outside Andorra + a non-refundable grant of €50,000 to the Andorran Financial Authority (AFA) |
Tax Benefits of Being a Tax Resident in Andorra
The Andorran tax system is internationally recognized and integrated, offering tax rates that are highly competitive compared to the rest of Europe:
– From €0 to €24,000: Exempt bracket (0%).
– From €24,001 to €40,000: Reduced rate of 5% (applying the €800 tax credit).
– From €40,001 onward: Maximum rate of 10%.
A flat rate of 10% on net profits.
Tax credits of up to 50% during the first year for startups with revenue of less than €100,000.
General rate of 4.5%.
The lowest indirect tax rate in all of Europe (compared to 21% in Spain or 20% in France).
Exemptions on Dividends, Estate, and Inheritance Taxes.
– 0% Wealth Tax.
– 0% Inheritance and Gift Tax.
– 0% tax on dividends received from Andorran companies by individuals who are tax residents of Andorra.
How to Avoid Dual Tax Residency Conflicts
(Exit Tax)
A change of tax residence must be carried out with the utmost technical rigor to avoid audits or claims by the tax authority of the country of origin (such as the AEAT in Spain); the following are the most critical aspects of the process:
Application of Double Taxation Treaties (DTTs): Andorra has signed DTTs with countries such as Spain, France, Portugal, Malta, and Luxembourg, which establish clear tie-breaker rules in the event of a conflict of residence.
Consular and Tax Deregistration: The formal process of deregistering from the overseas residents registry and notifying the relevant authorities of a change in tax address.
Obtaining the Certificate of Tax Residency: A definitive document issued by the Government of Andorra certifying residency in the Principality.
Learn more about obtaining a residence permit in Andorra.
Frequently Asked Questions About Tax Residency in Andorra
No. Administrative residency is the legal authorization granted by Immigration to reside in Andorra. Tax residency is acquired when tax criteria are met (such as staying for 183 or 90 days and having one’s center of economic and vital interests in the country) and the Tax Department issues the corresponding certificate.
Andorra issues an official Certificate of Tax Residency only to those who can prove they meet the legal requirements and the minimum stay period. This official document has legal validity under Double Taxation Agreements (DTAs).
You will continue to pay taxes in your country of origin only on income generated there (for example, rental income from real estate or dividends from local companies) under the Nonresident Income Tax (IRNR). Your worldwide income will be taxed in Andorra at a maximum rate of 10%.
Since June 2012, with the passage of Law 10/2012 on foreign investment in the Principality of Andorra, companies with 100% foreign capital have been permitted, offering significant tax benefits. Residents of the country also enjoy other advantages, such as a 0% tax rate on corporate dividends and an exemption from inheritance tax.
In the case of foreign investors (who are not residents of the country), the company or corporation will pay its taxes in Andorra, and the business owner will be subject to taxation in the country where he or she has tax residency.
The main taxes in Andorra are:
- Personal Income Tax (IRPF): maximum rate of 10% on amounts over 40,000 €. Income between €24,000 and €40,000 is taxed at 5%, and income up to €24,000 is taxed at 0%. Income from savings up to €3,000 is tax-exempt, and the sale of cryptocurrencies is taxed at a maximum rate of 10%.
- Corporate Income Tax (CIT): a maximum rate of 10% applied to net income, which, depending on the company’s business activity, may be reduced to 2% or even waived.
- The IGI (General Indirect Tax, equivalent to VAT): just 4.5%, the lowest in Europe.
There are no taxes on wealth, estates, inheritances, or gifts. Furthermore, Andorra does not require taxpayers to declare assets held abroad, nor does it impose any exit tax (a tax on unrealized capital gains when a Spanish taxpayer transfers their tax residence to another country).
Yes, provided that you can prove you have resided in Andorra for at least 90 calendar days per year and demonstrate that your primary center of economic interests is not primarily located in another country with which a conflict of residence might arise.
Yes, Andorran law provides for the right to family reunification for first-degree relatives (spouse and dependent minor children) of legal residents of the Principality.
Following the entry into force of the latest amendment to the Immigration Act, the waiting period required to initiate this process has been set at 3 months from the date the residence permit is granted, and this applies uniformly to all nationalities. This legal change standardizes the conditions for all residents in the country, eliminating the previous requirement that non-EU citizens or citizens of countries other than Spain, France, and Portugal had to wait one year.
Would you like to know how to obtain residency in Andorra?
Contact us with no obligation to find out how to establish your tax residence in the Principality in a legal, secure, and optimized manner.