Jurisdiction briefing · AD

Andorra

Q: Is Andorra in the EU?

No. Andorra has a customs union with the EU but is not a member state and is not in Schengen.

Q: How low is the Andorran tax rate?

Personal income tax tops out at 10% above €40,000 annual income, with 5% from €24,000 to €40,000 and 0% below €24,000.

Q: How much do I need to invest for passive residence?

€600,000 in qualifying Andorran assets plus a €47,500 refundable deposit per applicant (€9,500 per dependant).

Q: Is there capital gains tax in Andorra?

10% standard, but listed-share gains are exempt where the holding is below 25%, making Andorra attractive for portfolio investors.

Pyrenean micro-state with a 10% top rate, low cost of living and a passive-residence track for investors.

10%Top tax rate

€600kPassive minimum

90 daysMinimum presence

Last reviewed21 April 2026Orientation only · verify before acting

Tax snapshot

The position in figures.

Headline treatment for an individual tax resident. Source, asset and treaty rules can change the payable result.

Top marginal income tax10%—

Capital gains10%0% on listed share holdings <25%

Wealth taxNone—

Inheritance taxNone—

Exit taxNone—

CFC rulesLimited—

Tax treaties~10Limited network

Days for residency90Passive residence

Profile fit

Where the jurisdiction fits.

Best for

Investors and entrepreneurs wanting low tax with EU geographic adjacency (not EU member)
Passive residence applicants with €600k to deposit
Crypto and online business operators
Outdoor/skiing-oriented lifestyle seekers

Consider carefully

Those needing a deep tax-treaty network
Buyers expecting Schengen access automatically (Andorra is not in Schengen)
Anyone whose business needs major-airport proximity

Routes and regimes

Programmes that matter.

Passive Residence (Residencia Pasiva)

For non-active residents: €600,000 invested in Andorran assets (real estate, government bonds, or AFA-regulated funds), plus €47,500 deposit refundable on departure. 90-day minimum presence; renewable.

Active Residence (Self-employment)

For those running an Andorran business: 20% shareholding requirement, real local activity, €15,000 deposit. Lower investment threshold but real substance required.

Planning risks

Pitfalls to resolve early.

01
Andorra has only ~10 tax treaties — treaty optimisation is not its strength.
02
Not in Schengen and not in the EU — border crossings to/from France and Spain remain physical checkpoints.
03
Banking is selective and KYC-intensive after Andorra’s 2018 reform.
04
Spanish or French citizens leaving for Andorra face very strict tax-residency scrutiny from their home authorities.

Frequently asked

Direct answers.

Is Andorra in the EU?

No. Andorra has a customs union with the EU but is not a member state and is not in Schengen.

How low is the Andorran tax rate?

Personal income tax tops out at 10% above €40,000 annual income, with 5% from €24,000 to €40,000 and 0% below €24,000.

How much do I need to invest for passive residence?

€600,000 in qualifying Andorran assets plus a €47,500 refundable deposit per applicant (€9,500 per dependant).

Is there capital gains tax in Andorra?

10% standard, but listed-share gains are exempt where the holding is below 25%, making Andorra attractive for portfolio investors.

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