News brief · Taxation

Andorra: the 10% cap on personal income tax (IRPF) appeals to content creators

Andorran income tax is capped at a single, very low rate, and the principality is drawing content creators and digital freelancers. The regime is real; so are its entry and presence requirements.

By Editorial team · on July 29, 2026

What Andorran taxation provides for

Andorran personal income tax is capped at a rate of 10%¹. There is no higher bracket: this is a ceiling, not a marginal rate.

A relief applies below a threshold of €40,000² on income from employment and from business activities, which further lowers the burden on modest incomes.

Dividends from holdings in Andorran entities are not taxed: the applicable rate is 0%³.

Corporate income tax is set at the general rate of 10%⁴. The combination of corporate tax at this level and untaxed dividends is what makes the principality attractive to an entrepreneur, more so than the personal cap taken in isolation.

It should be added that the principality levies no wealth tax and no inheritance or gift tax. For the transfer of assets, this feature weighs more in the long term than the income tax cap, and it is rarely highlighted.

Andorran value added tax is, moreover, one of the lowest in Europe, which reduces the cost of everyday consumption. This advantage is partly offset by the price of housing, which is tight in a principality that is physically short of space.

Conditions of access

Andorra belongs neither to the European Union nor to the Schengen area. Residing there requires an authorisation, whatever the applicant's nationality.

Residence without gainful activity rests on a definitive payment of €50,000⁵ by the main holder to the Andorran Financial Authority, on an investment in Andorran assets required from €1,000,000⁶, and on proof of resources.

The holder of such a residence permit undertakes to be effectively present in the territory for at least 90 days⁷ per year. This obligation is monitored and is a condition of renewal.

Andorran tax residence, for its part, is acquired by a presence of more than 183 days⁸ over the year, or by having the centre of economic interests located in Andorra.

The gap between these two durations is the most misunderstood point of the Andorran file. Ninety days are enough to keep the residence permit; they are not enough to make Andorra the place of taxation of a taxpayer whom France would continue to claim.

What France raises in response

Article 4 B of the French General Tax Code (code général des impôts) takes into account the home, the main place of stay, professional activity and the centre of economic interests. A treaty links France and Andorra, and it resolves cases of dual residence according to its own criteria.

A content creator whose audience, contracts and service providers remain French, and who spends ninety days in Andorra, is in a fragile position. The question is not theoretical: it has given rise to widely publicised disputes.

Departure also triggers the exit tax when the securities reach more than €800,000⁹ or more than 50%¹⁰ of a company's profits. As Andorra is not a member of the European Economic Area, the deferral requires guarantees and a tax representative, requested at least from 90 days¹¹ before the transfer.

This is a timing point that hastily decided departures systematically miss, and it makes the tax immediately payable.

Key takeaways

The 10%¹ cap is real, but it presupposes Andorran tax residence, not merely the residence permit.
A presence of 90 days⁷ keeps the permit; tax residence requires more.
The centre of economic interests must genuinely move: contracts, clients, decisions.
The payment of €50,000⁵ to the Financial Authority is definitive: it is not refunded on departure.
The exit tax must be prepared at least from 90 days¹¹ before departure, as Andorra is outside the European Economic Area.

For an entrepreneur who accepts to genuinely live there, Andorra remains one of the lightest tax regimes in Western Europe, with a geographical proximity that few destinations offer. What fails there almost always comes down to the same cause: a formal move without an actual shift of life and activity.

Please note

General information, as of the date shown. A draft reform is not a rule in force: check the conditions with the authorities or a professional before deciding. Terms of use and disclaimers

Sources and verification dates

1.
Andorra: personal income tax rate : 10%
« Article 43. Tipus de gravamen — El tipus de gravamen de l'impost és el 10 per cent. — Llei 5/2014 de l'impost sobre la renda de les persones físiques, art. 43. Article 41 de la Llei 95/2010 de l'impost sobre societats : El tipus general de gravamen per als obligats tributaris d'aquest impost és del 10 per cent. »
portaljuridicandorra.adVerified on Nov 2, 2026Verified source
2.
Andorra: threshold for the reduction on income from employment, economic activities and real estate capital : €40,000
« Article 46. Bonificació per obtenció de rendes del treball, d'activitats econòmiques o del capital immobiliari — L'obligat tributari […] es dedueix de la quota de tributació una bonificació del 50 per cent de la quantitat que resulti d'aplicar el tipus de gravamen de l'impost sobre l'import de la base de tributació general […] minorada en la quantitat corresponent a la reducció prevista en el primer paràgraf de l'apartat 1 de l'article 35 […]. Aquesta bonificació no pot excedir la quantitat de 800 euros. — Llei 5/2014, art. 46. Le plafond de 800 € correspond à 5 % de 16 000 €, soit une base de 40 000 € (24 000 € exonérés + 16 000 €) : au-delà de 40 000 €, le taux plein de 10 % s'applique. »
portaljuridicandorra.adVerified on Nov 2, 2026Verified source
3.
Andorra: taxation of dividends from holdings in Andorran entities : 0%
« Article 5. Rendes exemptes — Estan exemptes de l'impost les rendes següents: […] j) Els dividends i altres rendiments derivats de la participació en el patrimoni net, a què es fa referència a l'apartat 1 de l'article 22, quan siguin satisfets per entitats residents fiscals a Andorra o per organismes d'inversió col·lectiva de dret andorrà sempre que estiguin subjectes a l'impost sobre societats andorrà. — Llei 5/2014 (IRPF), art. 5 j). »
portaljuridicandorra.adVerified on Nov 2, 2026Verified source
4.
Andorra: standard corporate income tax rate : 10%
« El tipus general de gravamen per als obligats tributaris d'aquest impost és del 10 per cent. »
portaljuridicandorra.adVerified on Nov 2, 2026Verified source
5.
Andorra — passive residence: definitive payment by the main holder to the AFA (Law 2/2026) : €50,000
« Efectuar un ingrés, a favor de l'Autoritat Financera Andorrana, en el mateix moment en què es presenta la sol·licitud d'autorització d'immigració, d'un import de cinquanta mil euros (50.000 €), el qual s'ingressa amb caràcter definitiu i no és reemborsable, llevat que l'autorització d'immigració inicial sigui denegada. »
Consell General del Principat d'Andorra, « Llei 2/2026, del 22 de gener, de continuïtat i consolidació de les mesures per al creixement sostenible (BOPA núm. 15, 12 de febrer del 2026) », Jan 22, 2026Verified on Nov 2, 2026Verified source
6.
Andorra — passive residence: minimum investment in Andorran assets (Law 2/2026) : €1,000,000
« El titular principal d'una residència sense activitat lucrativa ha d'invertir de forma permanent i efectiva una quantitat d'almenys un milió d'euros (1.000.000 €) en alguna o diverses de les tipologies d'actius que s'indiquen a continuació »
Consell General del Principat d'Andorra, « Llei 2/2026, del 22 de gener, de continuïtat i consolidació de les mesures per al creixement sostenible (BOPA núm. 15, 12 de febrer del 2026) », Jan 22, 2026Verified on Nov 2, 2026Verified source
7.
Andorra: annual physical presence to which the holder of a residence without gainful activity commits : 90 days
« Estableixi la seva residència principal i efectiva al Principat d'Andorra durant almenys 90 dies per any natural. »
govern.adVerified on Nov 2, 2026Verified source
8.
Andorra: annual presence giving rise to tax residency : 183 days
« Que romanguin més de 183 dies, durant l'any natural, en el territori andorrà. Per determinar aquest període en territori andorrà es computen les absències esporàdiques, excepte que l'obligat tributari acrediti la seva residència fiscal en un altre país. »
portaljuridicandorra.adVerified on Nov 2, 2026Verified source
9.
France, exit tax: total value of securities triggering taxation of unrealised capital gains : €800,000
« droits sociaux, titres ou droits atteignant une valeur globale d'au moins 800 000 € ou représentant au moins 50 % des bénéfices sociaux »
impots.gouv.fr
10.
France, exit tax: share of company profits triggering taxation, regardless of value : 50%
« droits sociaux, titres ou droits atteignant une valeur globale d'au moins 800 000 € ou représentant au moins 50 % des bénéfices sociaux »
impots.gouv.fr
11.
France, exit tax: deadline before departure to file a request for deferral with guarantees : 90 days
« Pour les départs intervenus à compter du 22 novembre 2019, la demande doit être déposée au plus tard 90 jours avant le transfert du domicile fiscal hors de France. — Direction générale des finances publiques, impots.gouv.fr. »
impots.gouv.fr