Spain Exit Tax & Moving to Andorra: Complete Guide 2026

Spain is one of the few European countries that imposes a tax on unrealised capital gains when a tax resident leaves the country. It’s commonly called the “exit tax” — technically regulated under Article 95 bis of Spain’s Personal Income Tax Law (Ley 35/2006 del IRPF). If you own shares, fund units, or other qualifying assets worth more than €4 million, or if you hold a 25%+ stake in an entity worth more than €1 million, Spain will tax your paper profits as if you had sold everything the day before you left.

This guide explains exactly how the exit tax works, who it applies to, what exemptions exist, and the full step-by-step process for cleanly moving your tax residence from Spain to Andorra in 2026.

What Is Spain’s Exit Tax?

The Legal Basis

Spain introduced its exit tax in 2015, modelled on similar mechanisms in France, Germany, and the Netherlands. The provision is found in Article 95 bis of the IRPF Law (Ley 35/2006) and its implementing regulations.

The tax is designed to prevent taxpayers from accumulating unrealised gains while benefiting from Spanish public services, then relocating to a low-tax jurisdiction to crystallise those gains tax-free.

Who Is Affected?

You are subject to the exit tax if all three conditions are met:

1. You have been a Spanish tax resident for at least 10 of the last 15 years.
2. You cease to be a Spanish tax resident (i.e., you move your fiscal domicile abroad).
3. You hold qualifying assets that exceed the thresholds below.

Qualifying Assets and Thresholds

The exit tax applies if, on the date you cease residency, you hold:

• Shares or participations in any entity (quoted or unquoted) with a total market value exceeding €4 million, OR
• A stake of 25% or more in any entity whose total market value exceeds €1 million

The tax is levied on the unrealised gain — the difference between your acquisition cost and the market value on the day before your change of residency.

Tax Rate

The gain is taxed at Spain’s savings income rates (base del ahorro):

Gain bracket	Rate
Up to €6,000	19%
€6,001 – €50,000	21%
€50,001 – €200,000	23%
€200,001 – €300,000	27%
Above €300,000	28%

For someone with €500,000 in unrealised gains, the exit tax would be approximately €127,320.

Exemptions and Deferrals

Moving to Another EU/EEA Country

If you move to another EU or EEA member state, Spain must grant a deferral under EU free movement rules. You don’t pay immediately — the tax is suspended until you actually sell the assets or move to a non-EU/EEA country.

Critical point: Andorra is NOT in the EU or EEA. This exemption does not apply when moving to Andorra. The exit tax is due in full.

Temporary Absence

If you leave Spain for work reasons and return within 5 years, you can request a suspension. The tax liability is cancelled upon your return. This applies mainly to expatriates on temporary assignments and requires filing Form 721 or equivalent notification with the AEAT.

The 10-Year Rule

If you have been a Spanish tax resident for fewer than 10 of the last 15 years, the exit tax does not apply to you. This is particularly relevant for:

• Expats who moved to Spain recently
• People who lived abroad for several years before returning to Spain
• Foreign nationals who have not yet accumulated 10 years of Spanish residency

Beckham Law Holders

Individuals who elected Spain’s special expatriate regime (the “Beckham Law”) are taxed as non-residents for IRPF purposes. The exit tax rules generally do not apply during the years covered by this regime, but the years of physical presence in Spain still count toward the 10-of-15-year threshold.

Practical Impact: Calculating Your Exit Tax

Example 1: Entrepreneur with Company Shares

• Acquisition cost of shares: €100,000 (company founded 8 years ago)
• Current market value: €2,000,000
• Unrealised gain: €1,900,000
• Stake: 100% (exceeds 25% threshold on >€1M)

Exit tax calculation:

Bracket	Amount	Rate	Tax
€0 – €6,000	€6,000	19%	€1,140
€6,001 – €50,000	€44,000	21%	€9,240
€50,001 – €200,000	€150,000	23%	€34,500
€200,001 – €300,000	€100,000	27%	€27,000
€300,001 – €1,900,000	€1,600,000	28%	€448,000
Total	€1,900,000		€519,880

Example 2: Investor with a Diversified Portfolio

• Total portfolio value: €5,000,000 (exceeds €4M threshold)
• Acquisition cost: €3,200,000
• Unrealised gain: €1,800,000

Exit tax: approximately €492,320.

Example 3: Below the Thresholds

• Portfolio value: €3,500,000 (below €4M)
• No single stake exceeds 25% in an entity worth >€1M

Exit tax: €0. The thresholds are not met.

Strategies to Minimise the Exit Tax

Important disclaimer: Tax planning must be done with qualified professional advice. The strategies below are informational only and may not apply to your specific situation.

1. Realise Gains Before Leaving

If you plan to sell assets anyway, doing so while still a Spanish resident means the gains are taxed at the same savings rates — but you avoid the administrative complexity of the exit tax and potential disputes about valuation. You also crystallise the gain at a known price rather than a debatable “market value.”

2. Dilute Below the 25% Threshold

If you hold more than 25% in a company worth over €1M, restructuring ownership (e.g., bringing in co-investors or transferring shares to family members) before your departure may bring you below the threshold. This must be done well in advance and with genuine commercial substance — artificial arrangements will be challenged by the AEAT.

3. Time Your Departure Carefully

If you have been a Spanish resident for 9 of the last 15 years, waiting to leave means you’ll trigger the 10-year threshold. Conversely, if you’re at exactly 10 years, there’s no way to avoid it. Plan your timeline early.

4. Use the Spain-Andorra Tax Treaty

Spain and Andorra have a Double Taxation Convention (CDI) signed in 2015. While it does not eliminate the exit tax, it provides mechanisms to avoid double taxation if Andorra later taxes the same gain upon actual disposal. Your advisor should review Article 13 (capital gains) of the treaty.

5. Installment Payment

Spain allows the exit tax to be paid in installments in certain cases, with interest. This may be relevant if your liquidity is limited. A bank guarantee may be required.

The Deregistration Process: Baja Censal

Moving your tax residence from Spain to Andorra requires formally notifying the Spanish tax authority (Agencia Estatal de Administración Tributaria — AEAT). This is called the baja censal.

Form 030: Change of Tax Domicile

You must file Model 030 (Declaración censal de alta, modificación y baja) with the AEAT to notify your change of tax residence. This form:

• Declares your new country of residence (Andorra)
• Triggers the exit tax assessment if applicable
• Updates your status in Spain’s taxpayer registry

Timing

File Model 030 after you have established genuine residence in Andorra (i.e., after receiving your Andorran residency permit and spending the majority of your time there). Filing prematurely — before you have actual ties to Andorra — weakens your position if Spain challenges your move.

Supporting Documentation

The AEAT may request evidence that your move is genuine. Prepare:

• Andorran residency permit (autorització d’immigració)
• Rental contract or property deed in Andorra
• Proof of CASS (Andorran social security) registration
• Bank statements showing Andorran financial activity
• Utility bills, school enrollment for children, etc.
• Flight records, mobile phone location data (in contentious cases)

Step-by-Step Checklist: Moving from Spain to Andorra in 2026

Phase 1: Planning (3–6 Months Before)

• Calculate your exit tax exposure. List all qualifying assets, their acquisition cost, and current market value. Use our tax calculator to compare overall tax burdens.
• Hire a cross-border tax advisor. You need a Spanish fiscalista and an Andorran gestor. Ideally, one firm that handles both jurisdictions.
• Review the Spain-Andorra tax treaty. Understand how Articles 4 (residence), 13 (capital gains), and 25 (mutual agreement) affect your situation.
• Check your residency year count. Have you been a Spanish tax resident for 10+ of the last 15 years?
• Plan asset restructuring if needed (share dilution, pre-departure sales, etc.).
• Start the Andorran residency application. Gather documents: criminal record certificate, medical certificate, proof of accommodation, passport photos, and the €50,000 AFA deposit (non-refundable under Omnibus 2).

Phase 2: The Move (Month of Relocation)

• Physically move to Andorra. Establish genuine presence: move furniture, set up utilities, register children in school.
• Open an Andorran bank account and transfer primary financial activity.
• Register with CASS (Caixa Andorrana de Seguretat Social) for healthcare and social security.
• Obtain your Andorran residency permit. Active residency (compte propi or compte aliè) or passive residency depending on your situation.
• Cancel or suspend your Spanish social security (alta/baja at the Tesorería General de la Seguridad Social).
• Notify the padrón municipal in your Spanish municipality that you have moved abroad.

Phase 3: Spanish Tax Obligations (After the Move)

• File Model 030 with the AEAT to declare your change of tax residence.
• File your final Spanish IRPF return (Renta) for the year of departure. This covers income from January 1 to your departure date, prorated.
• Declare the exit tax on Model 100 if applicable. Pay or request installment payment.
• File Model 720 (overseas asset declaration) if you still hold assets outside Spain — note that Model 720 obligations may persist for the year of departure.
• Keep all evidence of Andorran residency organized. Spain has 4 years to audit your departure (general statute of limitations) and potentially longer in cases of fraud.

Phase 4: Ongoing Obligations

• File an Andorran IRPF return annually (by September 30 for the previous year).
• Spanish-source income: If you retain rental property, pensions, or other income sourced in Spain, you must file Spain’s Non-Resident Income Tax (IRNR) returns using Model 210.
• Maintain 183+ days of physical presence in Andorra. Spain uses the 183-day rule aggressively, and the AEAT has been known to check flight records, credit card transactions, and phone location data.
• Review your tax treaty position annually with your advisor.

Common Mistakes to Avoid

1. Moving “On Paper” Without Moving Physically

Spain’s Hacienda is increasingly sophisticated in detecting fake relocations. The YouTuber investigations (Willyrex, Vegetta777) show that Spain will pursue cases aggressively. If your family, social life, and economic interests remain in Spain, changing your registered address to Andorra will not change your tax residence.

2. Ignoring the Exit Tax Until After the Move

The exit tax assessment is triggered by your departure. If you don’t plan for it, you may face a large, unexpected tax bill. Model the liability 6–12 months in advance.

3. Filing Model 030 Too Early

If you file the baja censal before you have genuine ties in Andorra, Spain can argue you were still a Spanish resident during the transition period. Establish real presence first, then file.

4. Forgetting Spanish-Source Income Obligations

Even after moving to Andorra, rental income from Spanish property, Spanish pensions, and capital gains on Spanish real estate remain taxable in Spain under the IRNR. Many expats forget this and accumulate penalties.

5. Not Keeping Records

Spain’s statute of limitations is 4 years for standard assessments. In cases of suspected fraud, it can extend to 10 years. Keep flight records, utility bills, bank statements, and any evidence of your Andorran residence for at least 6 years.

Spain’s Exit Tax vs Other European Countries

Country	Exit Tax?	Threshold	Rate	Deferral for EU/EEA moves?
Spain	Yes	€4M portfolio or 25% in >€1M entity	19–28%	Yes (but not for Andorra)
France	Yes	€800K in shares or 50% in a company	30% (PFU)	Yes, with guarantees
Germany	Yes	1% stake in a GmbH/AG	~26.4%	Installment over 7 years in EU
Netherlands	Yes	5% substantial interest	26.9%	10-year deferred collection
Portugal	No	N/A	N/A	N/A
UK	No (but CGT on return)	N/A	N/A	N/A
Andorra	No	N/A	N/A	N/A

Andorra itself has no exit tax. Once you are an Andorran resident, you can leave without any tax on unrealised gains.

Timeline: How Long Does the Full Process Take?

Step	Typical Duration
Planning and tax advice	1–3 months
Andorran residency application	2–4 months
Physical relocation	1–2 weeks
Model 030 and baja censal	1 month after establishing residency
Final Spanish tax return	By June 30 of the following year
Exit tax payment	With the final IRPF return or installment plan
Total end-to-end	4–8 months

Frequently Asked Questions

Does the exit tax apply if I move to Andorra but keep my Spanish company?

The exit tax applies to your personal holdings. If you hold shares in a Spanish SL, the unrealised gain on those shares is what’s taxed — not the company’s assets directly. You can continue to own and manage the Spanish company as a non-resident, but you’ll owe IRNR on any Spanish-source income.

Can I avoid the exit tax by renouncing my shares?

Donating or transferring shares before departure may trigger other taxes (gift tax, capital gains on transfer). Spain’s anti-avoidance rules can recharacterise transactions that lack genuine economic substance. This is not a simple workaround.

What if my assets are below the thresholds?

If your total portfolio is under €4 million and you don’t hold 25%+ in any entity worth over €1 million, the exit tax simply does not apply. You still need to file Model 030 and your final IRPF return.

Does the Spain-Andorra tax treaty eliminate double taxation on the exit tax?

The treaty provides mechanisms to avoid double taxation, but it does not eliminate the exit tax itself. If Spain taxes an unrealised gain on exit and Andorra later taxes the same gain on actual sale, the treaty should allow a credit. In practice, since Andorra’s capital gains rate is 10% and Spain’s exit tax rate is 19–28%, you would not get a full credit. Consult your advisor on the specific application.

How does Spain verify that I actually live in Andorra?

The AEAT uses multiple sources: the padron (municipal register), social security records, bank transactions, credit card usage patterns, flight manifests, mobile phone cell tower data, and information exchange under the Spain-Andorra tax treaty and Common Reporting Standard (CRS). Spain can also request information directly from Andorran tax authorities.

The Bottom Line

Spain’s exit tax is a real and significant cost for high-net-worth individuals moving to Andorra. But it’s a one-time cost — not an annual one. For someone with €1.9 million in unrealised gains, the exit tax of ~€520,000 is painful, but the annual tax savings of living in Andorra (10% max income tax, 0% dividends, 0% wealth tax) can recoup that amount within 3–7 years depending on your income and investment profile.

The key is planning: calculate your exposure early, structure your departure correctly, and maintain bulletproof evidence of genuine Andorran residence. Spain’s tax authority is watching — but if your move is real, documented, and properly executed, the law is on your side.

Use our free Andorra tax calculator to model your exact tax savings — Andorra vs Spain, France, UK, Portugal and more.

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This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax obligations depend on individual circumstances. Always consult a qualified professional.

Sources: Ley 35/2006 del IRPF (Article 95 bis), Agencia Estatal de Administración Tributaria (AEAT), Convenio entre el Reino de España y el Principado de Andorra para evitar la doble imposición (2015), Govern d’Andorra, CASS, Llei 5/2014 de l’IRPF d’Andorra.