Relocation intelligence

🇦🇩 Moving to Andorra: tax, residency and cost of living

Low-tax micro-state (max 10% PIT)

Thinking of moving to Andorra? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
10%
Corporate tax
10%
Capital gains
10%
Wealth tax
No
Inheritance tax
No
Cost of living index
68
Safety
9/10
Internet quality
7/10
Visa-free destinations
141
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Andorra levies a progressive personal income tax (IRPF/IRPF) with a top rate of only 10%. The first €24,000 is exempt; income between €24,000 and €40,000 is taxed at 5%; above €40,000 at 10%. There is no wealth tax or inheritance tax. The indirect tax (IGI) stands at 4.5%. Andorra has a limited treaty network (approx. 9 treaties in force). Crypto gains are generally treated as capital gains.

Residency and visas

Andorra offers four residency categories: passive resident (minimum investment of €400,000 in Andorran real estate or bank deposit, or €600,000 in financial assets), active resident (employed or self-employed), internationally active resident, and family reunification. Passive residents must spend a minimum of 90 days per year in Andorra. Permanent residency is available after 3 years; naturalisation after 20 years (reduced to 10 years for Spanish, French and Portuguese nationals).

Property ownership

Foreigners may own real estate in Andorra; property rights for non-residents are legally recognised. There are no specific restrictions on commercial real estate for foreigners. Foreign investment in Andorran companies is permitted up to 100% in most sectors following liberalisation in 2012, although certain sectors (media, retail) retain restrictions. Inheritance law generally follows the testator's chosen law within limits.

Cost of living and quality of life

Andorra offers an exceptionally high quality of life: outstanding safety (one of the lowest crime rates in Europe), modern healthcare via CASS (Caixa Andorrana de Seguretat Social), and a life expectancy of approximately 83.1 years (WHO 2023). The cost of living is lower than in major European cities. Ski resorts, clean mountain air and duty-free shopping are major draws. English penetration is moderate; Catalan, Spanish and French dominate.

Passport and mobility

The Andorran passport provides visa-free or visa-on-arrival access to approximately 141 countries (Henley Passport Index 2024). As a non-EU member state, it does not grant automatic EU work rights, though visa-free access to the Schengen Area is secured via bilateral agreements.

Residency and visas

  • Residència Passiva · €400,000 · Residency in 3 years
  • Residència Activa per Compte d'Altri · Residency in 3 years
  • Residència Activa per Compte Propi · Residency in 3 years
  • Residència Activa Internacional · Residency in 3 years
  • Reagrupament Familiar · Residency in 3 years

Why people move to Andorra

  • Personal income tax capped at only 10%

    With a maximum PIT rate of 10% and full exemption on the first €24,000, you retain a significantly larger share of your income than in the Netherlands, Germany, France or Spain. There is additionally no wealth tax or inheritance tax.

  • Exceptional safety and high quality of life

    Andorra ranks among the safest countries in the world with one of Europe's lowest crime rates. The combination of modern healthcare, clean mountain air, ski resorts and lower living costs compared with Western European capitals makes it a highly attractive living environment.

  • Passive residency via investment: minimal physical presence required

    The passive residency status requires only 90 days of physical presence per year in Andorra, offering flexibility for internationally active entrepreneurs and investors. Permanent residency becomes available after 3 years. The combination of low taxation and minimal presence requirements is unique in Europe.

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Sources

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