Moving to Andorra: tax, residence and real costs (2026)
Andorra: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top. The cheapest route to residence is active residence with your own Andorran company: EUR 50k refundable deposit + EUR 3k capital; 183 days: USD 57k that stays yours (deposit, investment or funds shown) plus about USD 5,000 in fees, in about 3 months. Living costs about USD 1,850 a month for one person in Andorra la Vella, USD 1,850 in Ordino, and around USD 1,300 on a bare-minimum budget.
Key facts
| Tax in one line | 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top |
| Foreign income | taxed at up to 10% (treaty relief) |
| Gains · dividends | 0-10% · 0% first EUR 24k, then 10% |
| Wealth · inheritance tax | none · none |
| Cheapest residence | active residence with your own Andorran company: EUR 50k refundable deposit + EUR 3k capital; 183 days |
| Money needed | USD 57k that stays yours (deposit, investment or funds shown) plus about USD 5,000 in fees |
| Time | about 3 months |
| Doable yourself? | Mostly; a local fixer for one step helps |
| Days you must spend there | passive: 90 days a year; active: 183 |
| Citizenship | 20 years, give up other nationality |
| Online business | 10% effective, about USD 4,000 a year to run: Andorran SL at 10% (first EUR 24k of personal income exempt); a gestoria does the books |
| Living (one person a month) | Andorra la Vella ~USD 1,850; bare minimum ~USD 1,300; family of four ~USD 4,200 |
| Good for | 10% ceiling on everything; holding regime (participation exemption); close to Barcelona and Toulouse |
| Common set-up | passive residence (EUR 600k investment + EUR 50k deposit) or an active residence with a local company where the owner works |
Pros and cons
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Questions
- How much does residence in Andorra cost?
- Active residence with your own Andorran company: EUR 50k refundable deposit + EUR 3k capital; 183 days: USD 57k that stays yours (deposit, investment or funds shown) plus about USD 5,000 in fees, about 3 months.
- Does Andorra tax foreign income?
- Taxed at up to 10% (treaty relief). In one line: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top.
- What does it cost to live in Andorra?
- Living costs about USD 1,850 a month for one person in Andorra la Vella, USD 1,850 in Ordino, and around USD 1,300 on a bare-minimum budget (based on livingcost.org, 2026).
- Can I run an online business from Andorra?
- Effective tax about 10% with the cheapest legal set-up, which costs about USD 4,000 a year: Andorran SL at 10% (first EUR 24k of personal income exempt); a gestoria does the books.
- What is the catch in Andorra?
- Spain watches closely for people who still live in Spain.
Compare
- Monaco: 0% on foreign income · 0% on local income (French citizens excepted)
- Switzerland (lump-sum taxation): lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included)
- Italy (flat tax for new residents): EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income
- Greece (non-dom): EUR 100k a year flat on all foreign income (+EUR 20k per family member) · up to 44% on Greek income
- Cyprus (non-dom): 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains
- Malta: foreign income: 0% unless brought to Malta (min. tax EUR 5k) · 35% top on Maltese income
- Portugal (IFICI): 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise
- United Kingdom (FIG regime): first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide
Compare all 53 places with your own income and budget →
Sources
- https://www.govern.ad
- Living costs: based on livingcost.org (livingcost.org, June 2026), rounded