Southern Europe · Europe

Andorra

76good

Overall Score

Andorra is a Southern Europe jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 10%. The jurisdiction offers a digital nomad visa for qualifying individuals.

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Corporate Tax

10%

Personal Income Tax

10%

Capital Gains

VAT / GST

4.5%

Overview

Key Data

Taxation

Personal Income Tax (max)10%

Personal Income Tax (min)0%

Corporate Tax Rate10%

Capital Gains Tax0%

VAT / GST4.5%

Dividend Tax Rate0%

Withholding Tax0%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesNo

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaYes

Golden VisaNo

Retirement VisaNo

Investment VisaYes

EU MemberNo

Schengen AreaNo

EU PassportNo

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index68/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easegood

Internet Qualitygood

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Andorra is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Max 10% personal income tax (first EUR 24k exempt). No capital gains tax. 4.5% IGI (VAT equivalent). Active Remote Work visa. Must spend 183 days/year. Schengen adjacent but not full member.

Company Setup & Business Taxation

The standard corporate income tax rate is 10%. The administrative process is considered straightforward, with minimal bureaucratic friction.

Banking & Financial Access

Account opening in Andorra can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Compliance & International Reputation

Andorra is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Andorra ranks highest for Founder / Entrepreneur and High Net Worth Individual. It offers a strong proposition for founder / entrepreneur (score: 78/100). It offers a strong proposition for high net worth individual (score: 77/100).

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.