Tax residency in Andorra: real requirements and benefits (2025)

🏁 1. What does being a tax resident in Andorra mean?

Being a tax resident in Andorra means your main tax obligations — both personal and business — are centred in the Principality.
Unlike most European countries, Andorra has no wealth or inheritance tax, and personal income tax (IRPF) is capped at 10%.
This makes Andorra an attractive destination for entrepreneurs, digital professionals and families seeking tax efficiency with full legal certainty.

📜 2. Requirements for obtaining tax residency

The criteria are based on three key pillars:

a) Physical presence

Staying more than 183 days per calendar year in Andorra.
Short trips abroad do not interrupt the count if Andorra remains your habitual residence.

b) Economic interests

A person is considered a tax resident if their main professional or business activity is based in Andorra, or if they manage assets or companies from the country.

c) Personal and family ties

If the spouse or dependent children habitually live in Andorra, the family is presumed to have Andorran tax residency unless proven otherwise.

🧾 3. Documentation and practical procedure

The tax residency recognition process includes:

• Application to the Andorran Tax Administration (ATC).
• Proof of sufficient financial means and effective domicile.
• Ownership or lease contract of housing.
• Health insurance and Andorran tax identification number (NRT or NIA).

Although straightforward, this process must be planned carefully to avoid double taxation during the transition year.

✨ 4. Benefits of paying taxes in Andorra

• Personal income tax (IRPF): maximum 10%.
• Corporate income tax: 10%, with partial exemptions on dividends.
• General Indirect Tax (IGI): 4.5%, among the lowest in Europe.
• No wealth or inheritance tax.
• Network of double taxation agreements with Spain, France, Portugal, Luxembourg, UAE, Korea, Iceland, Lithuania, and more.

The country also offers institutional stability, legal security and a high quality of life, making it an ideal place for long-term projects.

➤ For a full overview of the tax framework, see Taxation in Andorra: advantages and obligations, where we detail the main taxes and benefits.

⚠️ 5. Common mistakes

• Failing to deregister correctly from the country of origin.
• Maintaining poorly structured accounts or companies.
• Not proving residence or financial means to the ATC.
• Using Andorra as a “formal” address without effective residence.

The Andorran Tax Authority requires consistency between declared residence, economic activity and lifestyle.

➤ To understand how CASS affiliation changes depending on residence type, read Types of residence in Andorra: active, passive and tax.

6. Conclusion

Establishing tax residency in Andorra is a strategic decision that combines tax efficiency, legal certainty and quality of life.
By meeting the legal requirements and planning the move properly, one can benefit from a stable, competitive and internationally recognised tax system.

If you want to know more about planning your relocation or tax residence, you can book a personalised meeting below or contact us through the form.

📚 Related articles

• Setting up a company in Andorra: steps, requirements and advantages — How to establish a business and optimise its structure.
• Double taxation treaties and their practical application — How to avoid double taxation and optimise your global tax burden.
  https://www.elysiumconsultingfirm.com/articles/double-taxation-treaties

Last review date: October 2025