Income tax in Andorra 2026

Income tax never exceeds 10% — the top band starts at EUR 40,000 — though quick property sales carry a separate 15% charge.

The first EUR 24,000 of general income is tax-free, and the slice up to EUR 40,000 costs just 5%.

Savings income — interest, foreign dividends, financial gains — has its own flat 10% with the first EUR 3,000 exempt.

Residents file once a year between 1 April and 30 September; the tax is called Impost sobre la Renda de les Persones Físiques (IRPF).

At a glance

top rate: 10% above EUR 40,000
entry band: 0% up to EUR 24,000
tax year basis: Calendar year 2026
filing deadline: 30 September 2027 for 2026 income; window opens 1 April 2027
residency basis: Residents taxed on worldwide income; non-residents on Andorran-source income
regime flag: 10% ceiling — the defining feature of the system

Rates

General income scale 2026

Taxable income (EUR)	Rate
0 – 24,000	0%
24,001 – 40,000	5%
Over 40,000	10%

Marginal rates apply within each band.

Savings income 2026

Item	Treatment
First EUR 3,000 of savings income	Exempt
Interest, foreign dividends, financial gains above that	10% flat
Dividends from Andorran companies	0% — fully exempt

Marginal rates apply within each band.

Thresholds & allowances

General income exemptionEUR 24,000
The 0% band available to every resident taxpayer.
Savings income exemptionEUR 3,000 a year
Applies before the 10% flat rate on interest, foreign dividends and financial gains.
Indirect tax context4.5%
The general rate of Andorra's sales tax, the Impost General Indirecte (IGI) — Europe's lowest standard rate.

Residency

Residency trigger

Tax residency follows 183 days of presence in the calendar year, or having your main economic base in Andorra. Passive-residence permits exist for investors who commit funds without working locally.

Non-resident treatment

Non-residents pay a flat 10% on Andorran-source income under the separate non-resident tax, generally withheld at source by the payer.

Notes

A EUR 100,000 earner pays about EUR 6,150 — the 6.5% social contribution (EUR 6,500) is deducted from taxable pay first, and only income above EUR 40,000 attracts the full 10%.
The annual return is filed between 1 April and 30 September of the following year; many employees with simple affairs owe little or nothing at filing.
Andorra sits outside the European Union but uses the euro; its treaty network is small, so cross-border earners should check home-country relief carefully.
There is no wealth tax and no local surtaxes — the 10% ceiling is genuinely the end of the story for income.
Technically the scale is a flat 10% with a EUR 24,000 personal minimum and a capped EUR 800 relief creating the 5% band (for employment, business and rental income) — the 0/5/10 presentation above shows the effect.

FAQ

How much tax on a EUR 50,000 salary in Andorra?

About EUR 1,475. Your 6.5% social contribution (EUR 3,250) is deductible first, leaving EUR 46,750 taxable: 0% on the first 24,000, 5% on the next 16,000 (EUR 800) and 10% on the final 6,750 (EUR 675). That is under 3% of gross.

When do I file my Andorran return?

Between 1 April and 30 September 2027 for 2026 income. Below EUR 24,000 of general income you typically owe nothing.

Is foreign income taxed?

Residents are taxed on worldwide income, but at the same capped rates — foreign salaries and business income top out at 10%, and foreign dividends fall under the 10% savings rate after the EUR 3,000 exemption.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See income tax in other countries

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