Andorra expat tax guide
Europe · how a foreigner who moves to Andorra is taxed · 2026 · Expat-friendly
If you move to Andorra, you become a tax resident when 183 days in a calendar year, or Andorra is the centre of your economic/vital interests. As a resident you are taxed on a worldwide basis — A new Andorran resident is taxed on worldwide income via IRPF, but very low rates (0%/5%/10%) and the absence of wealth, inheritance and gift taxes make it function like a low-tax haven. The top personal income tax rate is 10%. A foreign pension is treated as: Included in worldwide income, taxed on the IRPF scale (0% up to EUR 24,000, 5% to 40,000, 10% above EUR 40,000). Andorra also offers the Passive (non-lucrative) residency regime, which can sharply change this picture. It lacks a US tax treaty and lacks a US totalization agreement. Overall it reads as expat-friendly for an inbound mover. General information, not tax advice — verify with Andorra's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Andorra expat tax at a glance
| Question | Andorra (2026) |
|---|---|
| When you become tax resident | 183 days in a calendar year, or Andorra is the centre of your economic/vital interests |
| Residency day-count trigger | 183 days |
| How residents are taxed | Worldwide — A new Andorran resident is taxed on worldwide income via IRPF, but very low rates (0%/5%/10%) and the absence of wealth, inheritance and gift taxes make it function like a low-tax haven. |
| Top personal income tax rate | 10% |
| Foreign pension treatment | Included in worldwide income, taxed on the IRPF scale (0% up to EUR 24,000, 5% to 40,000, 10% above EUR 40,000) |
| Foreign capital gains / dividends | Taxed at 10% under IRPF; dividends from Andorran entities are exempt and foreign dividends/gains generally fall in the 10% band |
| Special expat / non-dom / retiree regime | Passive (non-lucrative) residency |
| US income tax treaty | No |
| US social-security totalization | No |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for Andorra, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to Andorra
The first thing that matters is tax residency: 183 days in a calendar year, or Andorra is the centre of your economic/vital interests. The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, Andorra taxes your worldwide income, so income earned abroad is in scope unless a treaty or special regime says otherwise. The top 10% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Included in worldwide income, taxed on the IRPF scale (0% up to EUR 24,000, 5% to 40,000, 10% above EUR 40,000). Foreign capital gains and dividends: Taxed at 10% under IRPF; dividends from Andorran entities are exempt and foreign dividends/gains generally fall in the 10% band. These outcomes can be overridden by a double-tax treaty, which decides whether the source country or Andorra taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The Passive (non-lucrative) residency regime
Passive residency: non-working residents who invest about EUR 600,000 in Andorra (or post a EUR 47,500 bond) and spend 90+ days/year get residency. A Digital Nomad route suits remote workers. Both confer ordinary low-IRPF tax residency, not a separate flat-rate expat regime.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with Andorra's tax authority before relying on it.
US citizens and social security in Andorra
| Question | Andorra |
|---|---|
| US income tax treaty? | No |
| US social-security totalization agreement? | No |
| Tax basis for residents | Worldwide |
| Top personal income tax | 10% |
There is no US tax treaty with Andorra, so US citizens rely on the Foreign Tax Credit (and the Foreign Earned Income Exclusion) under US domestic law to soften double taxation. With no totalization agreement, you can be exposed to social-security-type charges in both the US and Andorra. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to Andorra
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| Andorra (this country) | Worldwide | 10% | Passive (non-lucrative) residency |
| Switzerland | Worldwide | 11.5% | Lump-sum taxation (forfait fiscal) |
| Uruguay | Territorial | 36% | New-resident tax holiday |
| Philippines | Territorial | 35% | Special Resident Retiree's Visa (SRRV) |
| Panama | Territorial | 25% | Pensionado retiree visa (not a tax regime) |
| Costa Rica | Territorial | 25% | Pensionado / Rentista visas (not a tax regime) |
Frequently asked questions
When do you become a tax resident of Andorra?
183 days in a calendar year, or Andorra is the centre of your economic/vital interests. The headline trigger is 183 days. Once resident, Andorra taxes you on your worldwide income. This is general information for 2026, not tax advice — verify with the official authority.
How does Andorra tax a foreign pension?
Included in worldwide income, taxed on the IRPF scale (0% up to EUR 24,000, 5% to 40,000, 10% above EUR 40,000). Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the Passive (non-lucrative) residency regime in Andorra?
Passive residency: non-working residents who invest about EUR 600,000 in Andorra (or post a EUR 47,500 bond) and spend 90+ days/year get residency. A Digital Nomad route suits remote workers. Both confer ordinary low-IRPF tax residency, not a separate flat-rate expat regime. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with Andorra's tax authority.
Is Andorra good for US citizens or retirees?
Andorra does not have a US income tax treaty and does not have a US social-security totalization agreement. Without a totalization agreement, you can owe social-security-type contributions in both the US and here. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for Andorra compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. No US income tax treaty and no US totalization agreement. IGI (VAT) 4.5%, lowest in Europe; no wealth/inheritance/gift tax. Verify the EUR 600k investment and 90-day minimum stay with a local advisor. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with Andorra's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21