Andorra — Taxes

One of Europe’s lowest tax regimes Andorra caps both personal income tax (IRPF) and corporate tax at 10%, applies a 4.5% IGI (the lowest VAT in Europe), and levies no wealth tax and no general inheritance or gift tax. The personal income tax runs in three bands — 0% up to €24,000, 5% to €40,000, and 10% above — so the effective rate is well below 10% for most residents.

Residency is not automatic tax residency As everywhere, holding the passive-residency permit does not by itself make you tax-resident — that requires genuinely living in Andorra, well beyond the 90-day minimum. We set out the full picture — personal, corporate and indirect tax, the double-taxation treaty network and CRS, and how tax residency actually works — on our dedicated page: Andorra tax residency. See also Andorra residency by investment and our guide to second citizenship and taxes. See our methodology for how each figure is verified.