Andorra Tax Rates 2026: Income, Corporate, VAT & CASS Tables
Contents
Andorra runs one of the lightest and simplest tax systems in Europe, and it fits on one page. This is the complete reference for 2026 — every tax, every rate, every threshold — with each figure verified against the BOPA (Andorra’s official gazette) and the CASS. If you want to see what these rates mean for your own income, run the numbers in the Andorra tax calculator.
Personal Income Tax (IRPF): 0%, 5%, 10%
Andorra’s IRPF has used the same three brackets since it was introduced in 2015:
| Taxable income | Rate |
|---|---|
| €0 – €24,000 | 0% |
| €24,000 – €40,000 | 5% |
| Above €40,000 | 10% |
The first €24,000 is completely untaxed, so effective rates stay well below the 10% headline. A €60,000 salary pays €2,800 of IRPF — an effective rate of 4.7%. A €120,000 salary pays €8,800, or 7.3%. Compare that with Spain (up to 47%) or France (up to 45% plus social levies).
Savings and Investment Income: 10%, First €3,000 Exempt
Dividends, interest and capital gains are taxed at a flat 10%, with the first €3,000 of dividends and interest fully exempt each year. Two important twists:
- Dividends from Andorran companies are taxed at 0% in the hands of Andorran residents.
- There is no separate capital gains tax on most securities held long-term; gains fall under the same 10% savings regime.
Spain taxes the same income at 19–30%, France at a flat 30% (PFU), Portugal at 28%. The full comparison is in our savings tax guide.
Corporate Tax (IS): 10%
The general corporate rate is 10% on profits — against 25% in Spain and France. New companies and small businesses can access reduced effective rates in their first years, and Andorra’s double-tax treaties (Spain, France, Portugal, UK among them) prevent the same profit being taxed twice.
VAT (IGI): 4.5%
Andorra’s general indirect tax is 4.5% — the lowest standard consumption tax in Europe. Reduced rates apply to essentials (0% and 1%), health and education, and a higher 9.5% rate applies to banking services. For comparison: Spain 21%, France 20%, Portugal 23%.
Social Security (CASS): 22% Split
| Who pays | Rate |
|---|---|
| Employer | 15.5% |
| Employee | 6.5% |
| Total | 22% |
| Self-employed (standard monthly quota) | €587/month |
Self-employed residents pay a fixed monthly quota rather than a percentage, with reductions for lower incomes. Fifteen years of contributions is the minimum for a CASS pension. Details in how CASS works and the 2026 contributions table.
Property Taxes
| Tax | Rate |
|---|---|
| Property transfer tax (ITP, residents) | ~4% |
| Foreign buyer tax (Omnibus 2, 2026) | 10% |
| Annual municipal property taxes | Low, set by each parish |
| Rental income | Taxed under IRPF (max 10%) |
The 10% foreign-buyer rate doubled in 2026 under the Omnibus 2 Law. Current price levels by parish are in the property guide.
What Andorra Does NOT Tax
- No wealth tax (Spain: up to 3.5% in some regions; France: IFI on property above €1.3M)
- No inheritance tax (Spain and France: up to 45% and beyond)
- No gift tax
- No exit tax when you leave Andorra — though the country you leave may apply one
The Bottom Line for 2026
| Tax | Andorra | Spain | France |
|---|---|---|---|
| Top income tax | 10% | 47% | 45% |
| Corporate | 10% | 25% | 25% |
| Standard VAT | 4.5% | 21% | 20% |
| Savings income | 10% | 19–30% | 30% |
| Wealth tax | None | Up to 3.5% | IFI ≥€1.3M |
| Inheritance | None | Up to 45%+ | Up to 45%+ |
Becoming a tax resident requires 183+ days in the country and real economic substance — the practical routes and costs are covered in moving to Andorra and our relocation guide.
Sources: BOPA (Llei 5/2014 de l’IRPF, Llei 95/2010 de l’IS, Llei 11/2012 de l’IGI, Llei 2/2026), CASS. Rates verified August 2026. Estimates only — not tax advice.