Andorra Tax Calculator 2026

Andorra uses progressive income tax system (IRPF) with three brackets: 0% on first €24,000, 5% on €24,001-€40,000, 10% on income over €40,000. Maximum rate capped at 10% - one of lowest in Europe. Tax applies to employment, business, rental income. Tax residents pay on worldwide income. Non-residents pay flat 10% only on Andorran-source income. No wealth tax, no inheritance tax. Social security contributions (6.5% employee, 15.5% employer) are separate from income tax.

Yes, if you become Andorran tax resident by spending 183+ days in Andorra within calendar year or having your center of vital interests there. Tax residents pay progressive income tax (0-10%) on worldwide income. Digital nomads can apply for special residency permits for professionals with international projection - requires company operating 85%+ outside Andorra. Staying under 183 days means only Andorran-source income taxed. Many remote workers choose passive residency requiring 90 days minimum stay.

Employees pay 6.5% of gross salary (3% general branch, 3.5% retirement). Employers pay 15.5% (7% general branch, 8.5% retirement). Total combined 22%. Self-employed pay full 22% themselves on average salary base (€553 monthly for 2024). No caps on contribution base. Separate from income tax. Cover healthcare (75% outpatient, 90% hospital), pension, maternity, disability. CASS (Caixa Andorrana de Seguretat Social) manages all social security.

Dividends from Andorran companies paid to Andorran tax residents: 0% tax - completely exempt. Dividends from foreign companies to Andorran residents: 10% tax (with first €3,000 of savings income exempt annually). Non-residents receiving dividends from Andorran companies: 0% withholding. Very tax-efficient structure for business owners. Combined with 10% corporate tax creates attractive environment for entrepreneurs.

Cryptocurrency trading profits taxed at 10% as capital gains under personal income tax. First €3,000 of savings income (including crypto gains) exempt annually. Each crypto-to-crypto exchange is taxable event. Mining, staking, airdrops also taxable at 10%. Must declare in annual tax return. Holding crypto for 10+ years doesn't reduce tax for personal holdings. Very crypto-friendly environment - many exchanges and miners operate in Andorra. Digital Assets Law provides clear regulatory framework.

Limited deductions compared to other countries: first €3,000 of savings income (interest, dividends, some capital gains) exempt annually. First €24,000 of employment/business income tax-free. No standard deductions beyond these. No mortgage interest deduction. No dependent child allowances in income tax. Andorra's low rates (0-10%) mean fewer deductions needed. Focus is on simplicity and low rates rather than complex deduction system.

Tax year follows calendar year (January-December). Filing period: April 1 to September 30 of following year. File electronically through government portal. Each person files individually - no joint returns for married couples. Employees with only salary and employer withholding may not need to file if taxes fully covered. Self-employed and those with multiple income sources must file. Late filing penalties: €150-€3,000 minimum, or 50-150% of unpaid tax.

No wealth tax in Andorra. No annual tax on net worth or assets. No inheritance tax - assets pass tax-free to heirs. No gift tax between family members. Major advantage for high-net-worth individuals. Property transfer tax for real estate purchases: 3-10% for non-residents (based on number of properties), standard rates for residents. Capital gains on real estate: 15% first year, declining 1% per year after 3 years, 0% after 12 years ownership.

Standard corporate tax rate: 10% on net profits. One of lowest in Europe. Minimum effective rate 3% even with deductions (since 2023 reform). Special rates: 2% for Patent Box regime (IP-intensive companies). 0% for collective investment vehicles. Loss carryforward unlimited (no time limit). No local corporate taxes. Combined with 0% dividend tax for residents creates very efficient structure. Digital Assets Law supports crypto and blockchain companies.

Yes, through Passive Residency (non-lucrative residence). Requirements: €600,000 investment in Andorran assets (real estate, companies, bonds, insurance), €47,500 refundable deposit to AFA (+ €9,500 per dependent), minimum €40,500 annual income proof (300% of minimum wage + 100% per dependent), private health insurance, clean criminal record. Only 90 days per year physical presence required. Cannot work in Andorra but can manage foreign investments. Ideal for retirees, investors, remote workers.