'%3e%3cpath%20fill='%230052b4'%20d='M0%200h144.7l36%20254.6-36%20257.4H0z'/%3e%3cpath%20fill='%23d80027'%20d='M367.3%200H512v512H367.3l-29.7-257.3z'/%3e%3cpath%20fill='%23ffda44'%20d='M144.7%200h222.6v512H144.7z'/%3e%3cpath%20fill='%23d80027'%20d='M256%20354.5V256h66.8v47.3zm-66.8-165.3H256V256h-66.8z'/%3e%3cpath%20fill='%23ff9811'%20d='M289.4%20167a22.3%2022.3%200%200%200-33.4-19.3%2022.1%2022.1%200%200%200-11.1-3c-12.3%200-22.3%2010-22.3%2022.3H167v111.3c0%2041.4%2032.9%2065.4%2058.7%2077.8a22.1%2022.1%200%200%200-3%2011.2%2022.3%2022.3%200%200%200%2033.3%2019.3%2022.1%2022.1%200%200%200%2011.1%203%2022.3%2022.3%200%200%200%2019.2-33.5c25.8-12.4%2058.7-36.4%2058.7-77.8V167zm22.3%20111.3c0%205.8%200%2023.4-27.5%2040.9a136.5%20136.5%200%200%201-28.2%2013.3c-7-2.4-17.8-6.7-28.2-13.3-27.5-17.5-27.5-35.1-27.5-41v-77.9h111.4z'/%3e%3c/g%3e%3c/svg%3e)
Withholding tax in Andorra 2026
Payments to non-residents run through a flat 10% non-resident tax, withheld at source by the Andorran payer.
Dividends and interest are the big exception: Andorran financial income flows to non-residents at 0%.
Royalties carry a reduced 5%, and rental income enjoys an automatic 20% base reduction, giving an 8% effective rate.
When withholding is correctly applied, the non-resident has no Andorran return to file.
At a glance
- top rate
- 10% (non-resident work and services)
- entry band
- 0% on dividends and interest to non-residents
- tax year basis
- Calendar year 2026
- filing deadline
- Withheld by the payer; no filing where withholding covers the tax
- residency basis
- Applies to Andorran-source income of non-residents
- regime flag
- 5% royalty rate; 8% effective on rents
Rates
Withholding on payments to non-residents 2026
| Payment | Rate |
|---|---|
| Dividends | 0% |
| Interest | 0% |
| Royalties | 5% |
| Salaries and professional fees for work performed in Andorra | 10% |
| Rent from Andorran property | 10% on 80% of the rent — 8% effective |
Marginal rates apply within each band.
Thresholds & allowances
- Financial income exemption0%
No non-resident — individual or company — pays Andorran tax on Andorran dividends or interest.
- Rental base reduction20% automatic
Cuts the effective rate on Andorran rents from 10% to 8% without proving expenses.
Residency
Residency trigger
The non-resident tax attaches to income generated in Andorra — work physically performed there, local property, local business — at a flat 10% regardless of amount.
Non-resident treatment
Non-resident property sellers face the gains rules (10%, or 15% within 2 years of purchase) without the resident 10-year exemption.
Notes
- A non-resident consultant paid EUR 20,000 for work done in Andorra receives 18,000 after the flat 10% withholding, with nothing further to file.
- The 0% on dividends and interest makes Andorran structures attractive to foreign investors — money exits without friction.
- Andorra's treaty network is small; residents claiming reduced foreign withholding abroad need a tax residence certificate and a treaty that actually exists with the source country.
FAQ
I am a non-resident renting out my Andorran flat — what tax applies?
An effective 8%: the flat 10% non-resident rate applied to 80% of the rent after the automatic base reduction. On EUR 12,000 of annual rent, that is EUR 960.
Does Andorra withhold tax on dividends paid to me abroad?
No — 0%. Andorran dividends and interest to non-residents are exempt, so the gross amount arrives.
Figures: tax year 2026, compiled from public sources. Not tax advice.