Living in Andorra: tax residency, personal income tax and reporting obligations

You are considered an Andorran tax resident if you spend more than 183 days in the calendar year, or if the main center of your business activities or economic interests is in Andorra. In this case, you are taxed on your worldwide income. The Andorran government portal indicates a personal income tax (IRPF) rate of 10%, with an equivalent rate of 5% for income between €24,000 and €40,000, for tax returns filed between April 1st and September 30th, and with thresholds of €24,000 and €3,000. This page only provides information that official sources can confirm.

Andorran tax resident: two criteria and an exception for cross-border workers

The portal defines an IRPF taxpayer as any natural person with their tax residence in Andorra. Two criteria, in particular:

• more than 183 days of stay in the calendar year; ;
• or the main center of direct or indirect economic activities or interests in Andorra.

Daily cross-border workers from Spain or France, employed by resident companies, are not considered residents. They are subject to non-resident income tax (IRNR) and have a special tax regime with specific forms (740 for cross-border and temporary workers, 740-A for temporary workers who opt for the general withholding rules with a tax representative). IRNR rates are not discussed here.

For France, the convention protocol adopts these two criteria to define an Andorran resident. It excludes the presumption of residence based solely on Andorran nationality or a residence permit. If you are also a French resident, the convention prioritizes, in order: permanent home, center of vital interests, habitual residence, nationality, and mutual agreement.

The IRPF: rate of 10 % and equivalent rate of 5 %

The IRPF (Personal Income Tax) page on the portal states: "El tipus de tributació per l'IRPF és del 10%". The portal also mentions an equivalent rate of 5 % for incomes between €24,000 and €40,000, with a maximum bonus of €800 on the contribution. The tax base reductions are presented as images, and the page refers to the IRPF practical guide; this page does not quantify them or detail the complete tax scale.

Withholding tax varies depending on the nature of the income:

When to declare: the thresholds of €24,000 and €3,000

The tax resident declares in four cases:

1. income from economic activities; ;
2. income from real estate capital or labor of a gross amount equal to or greater than €24,000; ;
3. income from movable capital not withheld at source exceeding €3,000; ;
4. capital gains or losses.

Tax-exempt income does not need to be declared. The tax return must be filed between April 1st and September 30th of the year following the tax year. Online, it is submitted through the DTF's Virtual Office using the online identification module or an electronic certificate. In person, it is submitted to the DTF in Andorra la Vella, by appointment.

The tax census is a separate process: form 001, known as the "censale declaration," can be submitted online or in person. The websites consulted do not specify who must register or the deadline.

What the IRPF leaves out of its scope

For capital gains, the portal excludes from the scope of the IRPF (French Personal Income Tax) acquisitions free of charge (inheritances, gifts) and real estate sales subject to Andorran capital gains tax, unless they are related to an economic activity. This sentence describes the scope of the IRPF. It does not specify whether another Andorran tax applies to inheritances or gifts, nor at what rate capital gains on real estate are taxed: these points are not addressed on this page.

IGI: an indirect tax at 4.5 %

The General Indirect Tax (IGI) applies to the supply of goods and services provided for consideration by entrepreneurs and professionals. The standard rate is 4.5%, the reduced rate is 1%, the special rate is 2.5%, and the increased rate is 9.5% for banking and financial services. A rate of 0% applies to certain healthcare, education, and housing services. Individuals with an annual turnover not exceeding €40,000 (€150,000 for agriculture and livestock farming) are exempt, unless they opt in.

Social security: the CASS

According to the Cleiss (2024 fact sheet), the Andorran Social Security Fund scheme is mandatory for both employees and the self-employed. It includes a health branch (covering maternity, work-related accidents, disability, and death) and a pension branch.

These rates are those of January 1, 2024, as recorded by the Cleiss: please verify them for the current year. The Cleiss document does not mention a Franco-Andorran social security agreement.

Transparency and links with France

The annex to the 2027 draft budget law lists 11 states and territories on the French list of non-cooperative states. Andorra is not included. The same document indicates that the savings taxation agreement between the European Union and Andorra (February 12, 2016) has been amended, and that amending protocols signed on October 13, 2025, aim to align it with the OECD Common Reporting Standard and DAC 8. The Andorran Ministry of Finance outlines three methods for exchanging tax information: upon request, automatic, and spontaneous.

For a taxpayer domiciled in France, an account opened in Andorra must be declared using form 3916: see our page on foreign accounts and contracts. The treaty also contains a clause specific to French residents of Andorra, which is explained on our treaty page.

Salary of €32,000 excluding interest: numerical example (fictitious profile)

Situation. A fictitious employee, a tax resident of Andorra, receives €32,000 gross per year from an Andorran company. He also receives €4,000 in bank interest without withholding tax.

Issue. He wonders if he has to declare and what social security contributions represent.

Strategy. He compares his income to the portal's thresholds: €24,000 for employment and €3,000 for non-deductible investment capital. He applies the rates from the Cleiss fact sheet effective January 1, 2024.

Result. His salary of €32,000 exceeds the €24,000 threshold by €8,000, and his interest income of €4,000 exceeds €3,000: he declares his income between April 1st and September 30th. At a rate of 6.5 times % (3 times % for health insurance and 3.5 times % for old-age insurance), his share of contributions is €2,080; the employer's share, at 15.5 times %, is €4,960. The calculation does not include income tax: the full tax brackets and basic reductions are not included. The contribution rates are those for 2024.

What this page does not cover

The complete tax scale for personal income tax (IRPF) and its reductions, corporate tax, wealth tax, inheritance tax, and capital gains tax on Andorran real estate, local bank accounts and assurance-vie policies, as well as residence permits, are not detailed here. These should be verified with the Andorran Tax Department (DTF) and the Immigration Service. French departure regulations are available on our page about leaving France for Andorra.

What changes depending on your situation

• The number of days spent in Andorra and the location of your economic interests.
• Your status: employee, self-employed, cross-border worker, retired.
• The nature of your income: work, movable capital, real estate capital, capital gains.
• Your potential dual residence with France.

No result is guaranteed in advance: each point must be read in light of the documents in your file.