Wealth management in Andorra

“Alexis, Andorra is three hours from Toulouse and taxes there are light. On paper, everything is simple. What isn't?”

Andorra has 2,248 French nationals on the consular register at 31 December 2025, a change of −2.68% over one year. It is a small community, but its average wealth is out of all proportion to its size — which makes it a relevant destination for a wealth management firm.

Andorra signed a recent tax treaty with France on 2 April 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 are exceptions, however, and they are what make this file demanding: there is no estate tax treaty, and exit tax does not benefit from automatic deferral there. At Balmont Conseil, that is where we start.

1. Why seek expert wealth management in Andorra?

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

• Exit tax without automatic deferral. Andorra has an information exchange clause with France, but no recovery assistance clause. Deferral therefore requires an application, a tax representative and guarantees.
• No estate tax treaty. Nothing allocates the right to tax on death. Article 750 ter of the French Tax Code applies with no treaty corrective.
• The reality of residency. As Andorra borders France, the question of where you actually live arises with particular sharpness. A formal residence that does not match a real life there is fragile, and the matter is dealt with through evidence, not declaration.
• A favourable income tax treaty. Interest is capped at 5%, dividends at 5% or 15% depending on the holding, and pensions are taxable in the State of residence.

2. The France ↔ Andorra framework in five verified points

Here is the applicable framework, checked against the text of the treaty itself and official sources as at 15 September 2026. Lines three and four are the two constraints of the file.

Exit tax is the first issue in a move to Andorra. Deferral as of right requires the host State to have concluded with France both an information exchange clause and a recovery assistance clause. Andorra meets the first across the board and the second on none. For a significant securities portfolio, the guarantee to be provided can tie up a large sum for several years.

The absence of an estate tax treaty makes Article 750 ter directly operative. Its 3° makes taxable in France all assets received by an heir domiciled in France for at least six of the last ten years. Geographical proximity means part of the family has often stayed on the French side.

What we do not show. The Andorran income and capital gains tax rates, as well as the local treatment of foreign assurance-vie 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 workstreams, in order of urgency.

Costing the exit tax and the guarantees

We determine whether you cross the thresholds of Article 167 bis of the French Tax Code and we cost the consequence of having no automatic deferral: amount of the guarantee, the forms it can take, how long the funds are tied up, the date of relief.

This costing comes before the decision to settle there, and it sometimes changes it. Better to know it six months before than six weeks after.

• Assessment of unrealised capital gains and thresholds crossed.
• Simulation of the guarantee and its carrying cost.
• Possible reallocations before departure to reduce the tax base.

Substance of residence and proof

For a destination on the border, actual residence is where files are won or lost. We build the body of evidence with you — housing, presence, centre of economic and family interests, activity — and keep it on a dated record.

The aim is not cosmetic: it is to be able to answer, on the day the question is asked, with documents rather than explanations. It is also what distinguishes a genuine move from a paper domiciliation, which we do not support.

Passing on wealth and French assets

With no estate tax treaty, we model the transfer under domestic law alone, with the capped credit of Article 784 A of the French Tax Code, then we cost it heir by heir according to each one's domicile.

Finally, we monitor your French assets: property income at the non-resident minimum rate of Article 197 A of the French Tax Code, election for the average rate when more favourable, IFI (real estate wealth tax). As for investment vehicles, a Luxembourg assurance-vie contract offers a stable framework that does not depend on the policyholder's residence.

4. Methodology: our way of working

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

1. The initial review. We establish your actual situation: the make-up of your wealth, the project timeline, the situation of each member of the household, and the tax domicile of your heirs — because it is theirs that counts, not yours.
2. The applicable framework. We set out, source by source and with its date, the framework that applies to you. What we do not know, we mark “to be confirmed” — never anything else.
3. The choices. We present the options with figures and their respective consequences, and you decide. Wealth structuring comes after the decision, not before.
4. Ongoing monitoring. An annual review, free of charge, to check that the framework has not moved — treaties are amended, incentive regimes are abolished, thresholds change.

5. What the firm offers you

What concretely sets our work apart.

• Sources, not claims. Every item in your file carries its reference and its date. You can check. It is the only way to work on a subject where most of the information available online is out of date.
• A single point of contact in France. We coordinate your local advisers; we do not replace them: the host country's domestic tax rules are handled with a qualified professional on the ground. Our role is to keep the whole picture consistent and to defend the French side of the file.
• Fees that are easy to understand. Fees disclosed before any commitment: fixed-price reviews, tailor-made engagements at €500 incl. VAT per hour, insurers' commissions on contracts taken out. The annual review is free of charge.

Frequently asked questions: Andorra

Is the exit tax really more restrictive for Andorra?

Yes. Deferral of payment as of right requires the host State to have concluded with France both an information exchange clause and a recovery assistance clause. Andorra has the first for all the taxes concerned, and no recovery assistance clause.

Deferral remains possible on request, with a tax representative and guarantees. It is a cash constraint that must be costed before setting the timing of departure.

Is there an estate tax treaty between France and Andorra?

No. The treaty of 2 April 2013 covers income tax; the 2009 agreement covers exchange of information. Nothing governs inheritance or gifts.

Article 750 ter of the French Tax Code therefore applies with no treaty corrective, and Article 784 A allows only a capped credit for tax paid outside France.

Can my Andorran residency be called into question?

It can be if it does not match a real life there. Tax domicile is determined by factual criteria — home, main place of stay, professional activity, centre of economic interests — within the meaning of Article 4 B of the French Tax Code, then by the treaty criteria in the event of conflict.

For a destination on the border, this point is central. We build and keep the body of evidence that will answer it, and we do not support purely formal relocations.

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 locally, and we add the answer to your file. It's less immediate than a table found online, and far 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 real estate capital gains. The exemption applies to people affiliated to 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, favourable income tax treaty, and two constraints that set it apart from other nearby European destinations: no estate tax treaty, and no automatic exit tax deferral.

This is a project that needs time to prepare, and whose success depends first on two things: the timing of departure, and the reality of the move.

Firm's fees: €500 incl. VAT per hour. Annual follow-up is free of charge.

Let's review your situation

A thirty-minute conversation is enough to cost the exit tax and gauge your inheritance tax exposure. You can also start with a free contract X-ray.

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