Andorra Taxation in 2026: Business and Personal Relocation

Andorra taxation deserves a careful assessment before a business owner or family relocates. The headline rates are attractive, but the legal result depends on residence, the source of income and the structure of the business. A company registration, residence card or property purchase cannot replace that analysis.

This guide examines the main taxes and the 2026 relocation framework. It also explains how Bertaggia International Law Firm, led by Avv. Daniele Bertaggia, can coordinate the work for companies and private clients. Legal framework checked on 17 September 2026.

Andorra taxation: the main rates in 2026

The table is a starting point, not an all-inclusive cost of living or doing business. Immigration contributions, social security, property-related taxes and municipal charges require their own budget. Sources: Corporate Income Tax Law 95/2010, Article 41; Personal Income Tax Law 5/2014, Article 43; Government explanation of IGI rates.

Companies: a 10% rate requires a properly structured business

An Andorran tax-resident company generally faces corporate income tax on worldwide income. Taxable profit starts from the accounting result, with statutory adjustments. The 10% rate therefore applies to the tax base, rather than turnover or the balance in a bank account.

Domestic residence criteria include incorporation under Andorran law, a registered office in Andorra or effective management there. A completed corporate migration is also relevant. However, incorporating locally does not resolve a competing residence claim abroad. Related-party transactions must also respect the applicable market-value rules. Source: Law 95/2010, Articles 4, 7, 9 and 16.

For an established business, the first question is what will actually move. Management, contracts, staff, premises, intellectual property and customer relationships may require different steps. The Studio can compare a new Andorran subsidiary with a proposed transfer or reorganisation. The feasibility and tax cost of each option must be checked in both countries before implementation.

Personal income tax: allowances and a worked example

For the ordinary general income base, the personal allowance is €24,000. The law provides a 50% rebate on the relevant tax calculation, capped at €800. In a simple case, this produces no tax on the first €24,000, an effective 5% on the next €16,000 and 10% above €40,000. The savings base has a separate €3,000 allowance. Family circumstances, deductions and income classification can change the calculation. Source: Law 5/2014, Articles 35, 37, 43 and 46.

Example: assume €60,000 of net general-base income, the standard €24,000 allowance, entitlement to the rebate and no other adjustments. The calculation is (€60,000 − €24,000) × 10% − €800 = €2,800 IRPF. This is an illustration of income tax only. It excludes social contributions, foreign tax and personal circumstances; it is not a quotation of a client’s total liability.

Dividends: distinguish Andorran and foreign companies

Dividends paid by an Andorran tax-resident entity subject to Andorran corporate income tax are generally exempt from the recipient’s Andorran IRPF. Foreign dividends do not receive that domestic-dividend exemption. They normally enter the savings-income analysis, with any foreign tax credit subject to its conditions. The exemption does not settle taxation in another country claiming residence. Source: Government IRPF guide, pages 14 and 51.

Consequently, salary, director remuneration and dividends should be modelled separately. A favourable dividend rule cannot be applied indiscriminately to every payment from a company.

Tax residence: the real move matters

Andorra’s individual residence rules include spending more than 183 days in the country during the calendar year, or having the principal base of activities or economic interests there. Sporadic absences and the statutory family presumption also matter. Residents are generally within IRPF on worldwide income, subject to exemptions and relief. Source: Government IRPF guide, general scope and residence section.

A residence permit answers an immigration question. Tax residence requires a separate factual assessment. Keep evidence of where the family lives, where decisions are made and how time is spent. Review the departure country’s rules and any applicable treaty before fixing the move date. Treaty protection depends on the countries, income and effective provisions concerned; it should never be assumed from a foreign address.

The Studio’s international taxation service can coordinate this review with the relevant local advisers. The aim is a documented position that reflects the client’s actual life and business.

Relocating to Andorra: the 2026 immigration changes

The March 2026 government announcement describes reduced quotas for self-employed and non-working residence permits. Quota availability must be confirmed when preparing an application. The announcement also confirms the higher financial requirements for new applicants. A published quota is not a promise that a place remains available. Source: Government statement of 11 March 2026.

Entrepreneurs working through their own company

The company-based route requires authorised foreign investment, ownership of more than 34%, a management position and effective control. Under Law 2/2026, the €50,000 payment is generally non-refundable, except if the initial permit is refused. Qualifying technology or innovation projects may benefit from a specific exception. Earlier applications require transitional review. Source: Law 2/2026, Article 5 and second transitional provision.

Prepare identity and civil-status records, criminal-record certificates and evidence of accommodation. Foreign official documents may require an apostille or legalisation. Company, activity and immigration steps need coordinated timing. The Government’s self-employed residence checklist is useful for documentation, but its deposit wording must be read alongside the later 2026 reform.

Private clients seeking residence without gainful activity

The ordinary qualifying investment is now €1 million. The law provides a €400,000 Housing Fund alternative under its conditions. If property forms part of the investment, more than €800,000 must be allocated to each acquired unit. The principal applicant also pays €50,000 and €12,000 for each qualifying dependant, generally non-refundable unless the initial permit is refused. Source: Law 2/2026, Article 10.

These amounts do not by themselves establish eligibility or tax residence. Accommodation, resources, insurance, permitted activities and continuing residence conditions also need review. Before committing funds, obtain a written assessment of the chosen route, qualifying assets, costs and deadlines.

How Bertaggia International Law Firm can assist

The Studio can bring the legal, corporate and personal aspects of an Andorra relocation into one coordinated plan. Avv. Daniele Bertaggia, Founder and Managing Partner, leads the legal assessment. Gustavo Scriffignano supports corporate and banking coordination. Justyna Pisyak organises appointments and document requests.

1. Initial assessment. Review nationality, current residence, family ties, business activity, ownership and objectives. Identify issues that could prevent or delay the proposed move.
2. Compare the available structures. Assess the suitability of a company, relocation route and proposed remuneration. Prepare a budget that includes ongoing compliance and immigration costs.
3. Coordinate cross-border advice. Work with appropriately qualified Andorran and departure-country professionals on local filings, notarial steps and tax treatment. Define each professional’s role in the engagement.
4. Prepare the documentation. Organise ownership records, business plans and source-of-funds evidence. Coordinate bank account applications, subject to the bank’s independent checks.
5. Plan the implementation and follow-up. Sequence applications, registrations and the actual move. Establish responsibilities for accounts, returns, permit renewals and changes in circumstances.

For businesses, start with our international company formation service. For private clients, the review can also include cross-border asset protection and the organisation of existing holdings. The scope depends on the client’s facts and the agreed engagement; the Studio does not promise a permit, bank account or predetermined tax saving.

Related international tax and company guides

For a different jurisdiction, read our San Marino company tax and dividends guide. Each country has its own residence and distribution rules. You can also browse International Taxation, Company Formation and all English insights.

General legal information based on the sources linked above, checked on 17 September 2026. It does not replace advice on a specific transaction or relocation. Applicable law, administrative practice, quotas and personal circumstances must be checked before action.