Andorra
Andorra has become one of Europe's most attractive tax destinations, with personal income tax capped at 10% and corporate tax at 10%. This Pyrenean micro-state, squeezed between France and Spain, offers remarkable safety and a mountain lifestyle. Catalan, Spanish and French are all widely spoken, making integration straightforward.
Taxation
Income tax brackets
| Bracket | Rate |
|---|---|
| 0 € → 24 000 € | 0 % |
| 24 000 € → 40 000 € | 5 % |
| 40 000 € → unlimited | 10 % |
Corporate tax
10 %
Capital gains
10 %
VAT
4.5 %
Visa options
Résidence active (compte propre)
entrepreneurDuration: 2 ans renouvelable, citoyenneté apres 20 ans
Cost: 1 000 EUR (dépot dossier) + 50 000 EUR (caution)
Requirements: Création d'une société andorrane avec participation d'au moins 34 %. Dépot de garantie de 50 000 EUR. Résidence effective de 183 jours/an minimum.
Résidence passive (sans activité lucrative)
passive-incomeDuration: 2 ans renouvelable
Cost: 1 000 EUR (dépot dossier) + 600 000 EUR (garantie/investissement)
Requirements: Dépot de garantie de 600 000 EUR dont 400 000 EUR d'investissement en Andorre (immobilier, dépot bancaire, etc.). Résidence minimum de 90 jours/an.
Résidence pour professionnels internationaux
digital-nomadDuration: 2 ans renouvelable
Cost: 1 000 EUR (dépot dossier) + 50 000 EUR (caution)
Requirements: Exercer une activité économique internationale depuis Andorre (freelance, digital nomad). Dépot de garantie de 50 000 EUR. Revenus provenant principalement de l'étranger.
Living in Andorre
Popular locations among expatriates
Cost of living
Comparison with the French average (vertical line)
Single person
Couple
City center rent
Outside city center rent
The cost of living in Andorra is moderate, similar to mid-sized European cities. Rents are affordable compared to major European metros. Food is slightly cheaper thanks to the low VAT. However, the property market is small and purchase prices have risen sharply.
Settling in Andorre
Practical indicators to prepare your relocation
Safety & stability
Procedures
Start a business
Settling in Andorra requires a €50,000 security deposit and creating a local company with at least 34% local ownership. Active residency requires 183 days of presence per year. Catalan, Spanish and French are widely spoken, making integration natural. The property market is small and housing options are limited, which can complicate the search.
The Andorran health system (CASS) covers around 75% of medical costs, with the rest borne by the patient or supplementary insurance. Hospital Nostra Senyora de Meritxell offers decent care for routine cases. For complex pathologies, residents typically travel to Barcelona or Toulouse, 2-3 hours away by road.
Quality of life
Andorra offers an exceptional mountain lifestyle with skiing in winter and hiking in summer. The country is one of the safest in the world. Proximity to France (2h from Toulouse) and Spain (3h from Barcelona) offsets the relative isolation. Catalan, Spanish and French are all widely spoken.
Pros and cons
Advantages
- Personal income tax capped at 10%
- Corporate tax 10% and VAT just 4.5%
- Exceptional safety and mountain lifestyle
- Catalan, Spanish and French widely spoken
Disadvantages
- €50,000 minimum security deposit for residency
- No direct sea access and relative isolation
- Limited property market with rising prices
- No airport (dependent on Toulouse and Barcelona)
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Verified on January 15, 2025All data on this page comes from public and institutional sources.
FAQ
What is the tax rate in Andorra?
The top marginal income tax rate in Andorra is 10%. The corporate tax rate is 10%.
What is the cost of living in Andorra?
The monthly cost of living for a single person in Andorra is approximately 1400 EUR (excluding rent). City center rent costs around 900 EUR per month.
Is there a tax treaty between the United Kingdom and Andorra?
Check HMRC for the current status of the tax treaty between the United Kingdom and Andorra.
These results are estimates.
The data presented are estimates and do not constitute tax advice. Consult a professional for your personal situation.