In one line: Andorra remains one of Europe’s lowest-tax jurisdictions in 2026 — a 10% corporate tax, a top personal income tax of 10%, a 4.5% VAT (IGI), and no wealth, inheritance or gift tax. The single most important legal change of 2026 is the entry into force of the Andorra–Estonia double taxation agreement on 24 March 2026, which expands Andorra’s treaty network to 22 agreements. This hub brings together our complete, up-to-date 2026 guides so you can find the exact answer for your situation.
- Corporate tax (IS): 10% flat.
- Personal income tax (IRPF): 0% up to €24,000, 5% from €24,001–€40,000, 10% above €40,000.
- Savings income: first €3,000 exempt, then 10%.
- VAT (IGI): 4.5% standard rate — the lowest in Europe.
- Wealth / inheritance / gift tax: none.
- Treaty network: 22 double taxation agreements (Estonia in force since 24 March 2026).
What actually changed in 2026
For most residents and businesses, the headline of 2026 is stability: the core rates above are unchanged, which is precisely why Andorra continues to attract entrepreneurs, remote professionals and high-net-worth individuals. The concrete legal development to note is international rather than domestic:
- Andorra–Estonia DTA in force (24 March 2026). Signed on 23 September 2025 and ratified by the General Council on 11 December 2025, the agreement removes double taxation on income and capital between the two countries and brings Andorra’s treaty network to 22. Read the full analysis →
- A maturing treaty network continues to make Andorra more attractive for cross-border structures alongside its long-standing agreements with France, Spain, Portugal, Luxembourg and the UAE.
Andorra tax rates at a glance (2026)
| Tax | 2026 rate | Notes |
|---|---|---|
| Corporate tax (IS) | 10% | Flat rate on company profits |
| Personal income tax (IRPF) | 0% / 5% / 10% | 0% ≤ €24,000; 5% €24,001–40,000; 10% > €40,000 |
| Savings income | 10% | First €3,000 per year exempt |
| Capital gains | 0%–10% | Broad exemptions apply; see guide |
| VAT (IGI) | 4.5% | Lowest standard VAT in Europe |
| Wealth tax | None | — |
| Inheritance & gift tax | None | — |
Your complete 2026 guide library
Taxes explained
- Andorra Corporate Tax 2026: the 10% flat rate explained
- Andorra Income Tax (IRPF) 2026: rates, brackets & exemptions
- Andorra Capital Gains Tax 2026: when do you pay 0%?
- Andorra Wealth, Inheritance & Gift Tax 2026: why HNWIs pay 0%
Residency routes
- Andorra Passive Residency 2026: requirements, costs & process
- Andorra Active / Self-Employed Residency 2026: requirements, costs & process
- From UK Non-Dom to Andorra Resident: the complete 2026 relocation guide
Andorra vs. the alternatives
- Andorra vs Spain 2026
- Andorra vs Portugal 2026 (after NHR ended)
- Andorra vs Monaco 2026
- Andorra vs Malta 2026 (EU vs non-EU)
- Andorra vs Dubai 2026
- Andorra vs Switzerland 2026
Talk to Axior Global
Every situation is different — residency route, existing tax residence, business activity and family circumstances all change the answer. Axior Global is a specialist Andorran tax, corporate and immigration advisory firm. Book a consultation to get advice tailored to your case.
This guide is for general information and reflects the position as of July 2026; it is not individual tax or legal advice.