Andorra
Southern Europe • UTC+2 • Europe/AndorraAndorran Flat Tax System
Andorra's tax system is characterized by a flat tax rate for both personal and corporate income, along with a low VAT rate. This system is designed to attract foreign investment and residents.
Income Tax
10%
Flat rate on personal income
Corporate Tax
10%
Flat rate on corporate income
VAT / GST
4.5%
Standard VAT rate
Nomad Visa
Not Available
No dedicated program
Tax System Overview
Andorra operates a flat tax system with low rates for both personal and corporate income, designed to attract foreign residents and businesses.
System Type
Flat tax system
Resident Taxation
Residents are taxed on worldwide income at a flat rate of 10%.
Non-Resident Taxation
Non-residents are taxed only on Andorran-source income.
Tax Year
January 1 – December 31
Income Tax Bands
Andorra's flat income tax bands based on annual taxable income in EUR (2025).
Tax Treaty
Double Taxation Agreements help avoid being taxed twice on the same income.
France
Treaty ActiveThe treaty between Andorra and France prevents double taxation on income, reduces withholding taxes, and clarifies residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
Spain
Agreement ActiveThe agreement between Andorra and Spain prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for Andorra–Spain workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
10% flat rate on corporate income
VAT Registration
Mandatory if annual turnover exceeds €40,000.
Freelancer Rules
Freelancers are subject to the same flat tax rates as individuals.
Crypto Policy
Cryptocurrency gains are taxed as capital gains at the flat rate.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- Flat 10% tax rate on personal income
- No wealth tax
Filing Roadmap
Register as a Tax Resident
Ensure you are registered as a tax resident in Andorra if you meet the residency criteria.
Gather Income Documentation
Collect all necessary income documentation, including foreign income statements.
File Your Tax Return
Submit your tax return by June 30 using the official Andorran tax portal.
Pay Any Tax Due
Ensure any taxes owed are paid by the deadline to avoid penalties.