Wealth management in Andorra

«"Alexis, Andorra is three hours from Toulouse and the tax system is favorable. On paper, everything is simple. What isn't?"»

Andorra has 2,248 French citizens registered with the consular register as of December 31, 2025, a decrease of -2.68 % over one year. It is a small community, but its average wealth is disproportionate to its size — making it a relevant destination for a wealth management firm.

Andorra concluded a recent tax treaty with France, signed on April 2, 2013, preceded by an information exchange agreement in 2009. The Principality is now an ordinary treaty partner, which it was not fifteen years ago.

Two points, however, are exceptions, and these are what make this case demanding: There is no inheritance agreement., And The exit tax does not benefit from automatic deferment.. At the house of Balmont Conseil, We'll start there.

1. Why seek expertise in wealth management In Andorra?

Three points structure an Andorran project, and two are constraints.

• The exit tax without automatic deferment. Andorra has an information exchange clause with France, but no clause for assistance in tax recovery. Therefore, a stay of execution requires an application, a tax representative, and guarantees.
• The absence of a succession agreement. Nothing allocates the right to tax upon death. Article 750 ter of the General Tax Code applies without any contractual adjustment.
• The reality of residency. Because Andorra borders the EU, the question of actual residence is particularly acute there. Formal residency that does not correspond to real life on the ground is precarious, and the matter is addressed through evidence, not declaration.
• A favorable income agreement. Interest is capped at 5 %, dividends at 5 % or 15 % depending on the participation, and pensions are governed by the State of residence.

2. The France ↔ Andorra framework in five verified points

Here is the applicable framework, verified in the text of the convention itself and in official sources as of September 15, 2026. Lines three and four are the two constraints of the file.

The exit tax is the first issue when leaving Andorra. The automatic stay of execution presupposes that the host state has concluded with France both an information exchange clause and a recovery assistance clause. Andorra fully complies with the former but not with the latter. For a significant securities portfolio, the required guarantee could tie up a substantial sum for several years.

The absence of an inheritance agreement makes Article 750 ter directly applicable. Its third provision makes all assets received by an heir domiciled in France for at least six of the last ten years subject to French taxation. Geographical proximity means that it is common for part of the family to have remained on the French side.

What we don't display. The Andorran income and capital gains tax rates, as well as the local treatment of foreign life insurance policies, are not included in this table: we have not verified this information with the Andorran tax authorities. No relocation decision should be based on figures taken from a commercial website.

3. Our services: 360° support for expatriates and investors

Three projects, in order of urgency.

Calculation of exit tax and guarantees

We determine if you cross the thresholds of article 167 bis of the general tax code and we quantify the consequence of the absence of automatic deferment: amount of the guarantee, forms it can take, duration of immobilization, date of the relief.

This cost estimate precedes the installation decision, and sometimes it even changes it. It's better to know it six months in advance than six weeks after.

• Evaluation of unrealized capital gains and thresholds crossed.
• Simulation of the guarantee and its carrying cost.
• Possible trade-offs before departure to reduce the base amount.

Substance of residence and proof

For border destinations, actual residence is the key factor. We work with you to build a body of evidence—housing, presence, center of economic and family interests, activity—and we keep it dated.

The goal isn't cosmetic: it's to be able to answer, when the question is asked, with concrete evidence rather than explanations. This is also what distinguishes a real installation from a paper-based business address registration, which we don't provide.

Transmission and French heritage

In the absence of an inheritance agreement, we model the transfer with regard to domestic law alone, with the capped imputation of article 784 A of the general tax code, then we calculate heir by heir according to the domicile of each.

Finally, we ensure the monitoring of your French assets: rental income at the minimum rate for non-residents under Article 197 A of the French General Tax Code (CGI), the option for the average rate when more favorable, and the real estate wealth tax. Regarding the investment vehicles, a Luxembourg life insurance contract offers a stable framework independent of the subscriber's residence.

4. Methodology: our way of working

We work in four stages, and you know where you are at each stage.

1. The initial assessment. We assess your actual situation: composition of assets, project timeline, situation of each member of the household, and tax domicile of your heirs — because it is theirs that dictates, not yours.
2. The applicable reference framework. We establish, source by source and with its date, the framework that concerns you. What we do not know, we write "to be confirmed" — never anything else.
3. The arbitrations. We present you with the numerical options, along with their respective consequences, and you decide. Heritage engineering comes after the decision, not before.
4. The follow-up. An annual review, offered free of charge, which verifies that the framework has not changed — the conventions are modified, the attractiveness schemes are eliminated, the thresholds change.

5. What the firm offers you

This is what specifically distinguishes our intervention.

• Sources, not claims. Each item in your file has its reference number and date. You can check. This is the only way to work on a subject where most of the information available online is outdated.
• A single point of contact in France. We coordinate with your local advisors, we do not replace them: the internal tax regulations of the host country are handled by a qualified professional on site. Our role is to maintain overall consistency and to defend the French side of the case.
• Fees that are easy to understand. Firm fees: €500 including VAT per hour. Annual follow-up is included. No hidden kickbacks, no performance-based billing.

Frequently Asked Questions about Andorra

Is the exit tax really more restrictive for Andorra?

Yes. The automatic suspension of payment requires that the host state has concluded with France both an information exchange clause and a recovery assistance clause. Andorra has the former for all the taxes concerned, but no recovery assistance clause.

A deferment remains possible upon request, with a tax representative and guarantees. This is a cash flow constraint that must be quantified before deciding on the departure schedule.

Is there a succession agreement between France and Andorra?

No. The convention of April 2, 2013, concerns income tax; the 2009 agreement concerns the exchange of information. Nothing governs inheritances or gifts.

Article 750 ter of the General Tax Code therefore applies without conventional correction, and Article 784 A only allows a capped credit of tax paid outside France.

Can my Andorran residency be called into question?

It can be so if it does not correspond to actual life on the spot. Tax domicile is determined by factual criteria — home, main residence, professional activity, center of economic interests — as defined in Article 4 B of the General Tax Code, and then by treaty criteria in case of conflict.

For a border destination, this point is central. We build and maintain the body of evidence that will allow us to answer it, and we do not support purely formal installations.

What are the tax rates in Andorra?

We will not publish them here. We have not verified these figures with the Andorran tax authorities, and the sources available online are mostly commercial.

We tell you exactly what needs to be confirmed on-site, and we add the answer to your file. It's less immediate than a table found online, and much more reliable.

Will I pay CSG on my French income?

Yes, at the full rate of 17.2% (%) on your French-source property income and capital gains. The exemption applies to members of a scheme in the European Economic Area, Switzerland, or the United Kingdom.

The social security agreement between France and Andorra coordinates certain social rights but does not grant entitlement to this exemption.

In summary

Andorra offers a recent and favorable income tax treaty, and two constraints that distinguish it from other nearby European destinations: no inheritance tax treaty, and no automatic deferral of exit tax.

This is a project that takes time to prepare, and whose success depends primarily on two things: the departure schedule, and the reality of the installation.

Firm's fees: €500 including VAT per hour. Annual follow-up is offered.

Let's review your situation

A thirty-minute consultation is all it takes to calculate the exit tax and assess your inheritance tax exposure. You can also start with a Free X-ray of your contracts.

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