Andorra vs Greece in 2026: 10% Tax Cap vs the EUR 100,000 Non-Dom Flat Tax

Written and reviewed by the Axior Global Advisory Team — Andorra-based tax, corporate and residency advisors.

Andorra vs Greece in 2026: 10% Tax Cap vs the EUR 100,000 Non-Dom Flat Tax

TL;DR: These two jurisdictions solve the same problem in opposite ways. Andorra taxes low: personal income tax (IRPF) at 0–10%, corporate tax (IS) at a flat 10%, VAT (IGI) at 4.5%, and 0% wealth, inheritance, gift and exit tax. Greece taxes high but sells an exemption: the top marginal personal rate is 44% (applying above EUR 60,000 following the 2026 reform, which cut the lower bands) and VAT is 24%, but qualifying new residents can elect a non-dom regime paying a flat EUR 100,000 per year on all foreign-source income for up to 15 years, plus EUR 20,000 per additional family member. Because Greece’s charge is a fixed fee and Andorra’s is a percentage, there is a precise crossover point: EUR 1,032,000 of annual income. Below it, Andorra costs less; above it, Greece’s flat fee is cheaper on income tax alone — but the comparison does not end at income tax. Greece still charges 1–40% inheritance tax, 24% VAT, annual ENFIA property tax, and up to 44% on any Greek-source income; Andorra charges 0%, 4.5%, nothing, and 10% respectively. Entry cost: EUR 1,000,000 in Andorra (Law 2/2026) versus EUR 500,000 in Greece.

Key Facts: Andorra vs Greece (2026)

Item Andorra Greece
Top personal income tax 10% (IRPF, Llei 5/2014) 44% top marginal rate
Income-tax structure 0% to EUR 24,000; 5% EUR 24–40k; 10% above Progressive bands rising to 44%; the 2026 reform cut lower bands and lifted the 44% threshold from EUR 40,000 to EUR 60,000
Special regime for new residents Not needed — the 10% cap applies to everyone Non-dom: flat EUR 100,000/year on all foreign income
Duration of the special regime Permanent — it is the ordinary law 15 years maximum
Additional family members EUR 12,000 each (residency fee, one-off) EUR 20,000 per person, per year
Prior non-residence test None Not Greek tax-resident for 7 of the prior 8 years
Entry investment EUR 1,000,000 (passive, Law 2/2026), or EUR 400,000 Housing Fund EUR 500,000 in Greek real estate, securities or business
Non-refundable state fee EUR 50,000 (AFA) + EUR 12,000 per dependant —
Minimum physical presence 90 days/year (passive permit) No statutory minimum stay under the non-dom regime, but a Greek main residence must be declared
Corporate tax 10% flat (special regimes at 2%) 22%
VAT 4.5% (IGI) — lowest standard rate in Europe 24% standard (13% and 6% reduced rates apply) — among the highest in the EU
Dividend withholding Andorran-source dividends exempt for residents 5%
Wealth tax 0% No general wealth tax; annual ENFIA property tax applies
Inheritance / gift tax 0% 1%–40%, progressive by degree of kinship
Exit tax 0% — no personal or corporate exit tax No personal exit tax; ATAD corporate exit-tax rules apply
Capital gains Max 10%; 0% on property after 10 years Foreign gains covered by the flat tax for non-doms; Greek-source gains taxed domestically
EU membership No — EU association agreement signed and progressing toward ratification Yes — full EU member and Eurozone
Double tax treaties 22 in force (Estonia effective 24 March 2026) Extensive EU-member treaty network

Which Is Cheaper, Andorra or Greece?

It depends entirely on income size, and the crossover sits at EUR 1,032,000 of annual income. This is the rare cross-border comparison that resolves to a single number, because one side charges a percentage and the other charges a fixed fee.

Andorran IRPF exempts the first EUR 24,000, charges 5% on income from EUR 24,000 to EUR 40,000, and 10% on everything above. That produces a simple formula: Andorran tax = 10% of income minus EUR 3,200. Greece’s non-dom charge is EUR 100,000, flat, regardless of whether foreign income is EUR 200,000 or EUR 50 million.

The table below models a single taxpayer whose income is entirely foreign-source. Both assumptions matter: Andorran IRPF is assessed individually, so a two-earner couple splits income across two sets of bands and pays less than the figure shown, while the Greek flat fee does not split; and any Greek-source income falls outside the flat tax altogether.

Annual worldwide income Andorra (IRPF) Greece (non-dom flat tax) Cheaper
EUR 200,000 EUR 16,800 EUR 100,000 Andorra
EUR 500,000 EUR 46,800 EUR 100,000 Andorra
EUR 1,000,000 EUR 96,800 EUR 100,000 Andorra
EUR 1,032,000 EUR 100,000 EUR 100,000 Break-even
EUR 2,000,000 EUR 196,800 EUR 100,000 Greece
EUR 5,000,000 EUR 496,800 EUR 100,000 Greece

Two adjustments push that break-even point higher in practice, both in Andorra’s favour. First, the Andorran figures above are the maximum: dividends from Andorran companies are exempt from further IRPF for residents, and gains on shareholdings below 25% are exempt, so real Andorran liabilities are frequently below the modelled number. Second, Greece’s EUR 100,000 covers the principal only — each additional family member costs a further EUR 20,000 per year, so a couple pays EUR 120,000 and a family of four pays EUR 160,000 annually, moving the crossover to roughly EUR 1.63 million for a family of four.

What Exactly Is the Greek Non-Dom Regime?

A fixed annual tax of EUR 100,000 that substitutes for Greek taxation of all foreign-source income, available for up to 15 years to people who have not been Greek tax residents in 7 of the previous 8 years and who invest at least EUR 500,000 in Greece. Once elected, the size and composition of foreign income become irrelevant to the Greek bill.

Three conditions define its edges, and each is a real constraint:

Critically, the flat tax covers foreign-source income only. Salary, business profits, rent or gains arising in Greece fall outside it and are taxed under the ordinary regime, up to 44%. An entrepreneur who relocates to Greece and then builds a Greek-facing business finds the regime does very little for the income that actually grows.

Andorra requires no election, no lookback, no separate investment for the tax treatment, and imposes no expiry. The 10% cap is simply the law, and it applies to Andorran-source and foreign-source income alike. Our Andorra IRPF guide sets out the bands and exemptions.

How Do the Two Regimes Compare Outside Income Tax?

This is where the gap widens sharply, and where the Greek flat tax stops helping. The EUR 100,000 payment buys relief from income tax on foreign earnings. It does not touch consumption, property or succession.

Consumption. Greek standard VAT is 24%; the Andorran IGI is 4.5% — a gap of 19.5 points. As an illustration only, on EUR 300,000 of annual spending taxed at the standard rate that difference is in the order of EUR 58,500 a year. The real figure will be lower, because Greece applies reduced rates of 13% and 6% to food, medicines and much household expenditure — but the direction is unambiguous, and it is a recurring cost that erodes a meaningful part of the flat-tax advantage.

Succession. Greece charges inheritance tax on progressive scales from 1% to 40%, depending on the degree of kinship. Andorra charges 0% — no inheritance tax, no gift tax, no wealth tax, no exit tax. For a family planning an intergenerational transfer of significant assets, this single line typically outweighs every annual income-tax calculation in the comparison. See Andorra wealth, inheritance and gift tax.

Property. Greece levies ENFIA, an annual tax on the objective value of real-estate holdings. Andorra has no annual national wealth or property tax of that kind, though communal rates apply.

Corporate. A Greek company pays 22%; an Andorran company pays a flat 10%, with special regimes as low as 2% for qualifying activities. Business owners who intend to hold operations in the country of residence face a 12-point structural gap. Our Andorra corporate tax guide covers the regime.

What Does It Cost to Get In?

Greece is materially cheaper to enter; Andorra is materially cheaper to stay. Greece’s non-dom route requires EUR 500,000 invested in Greek assets. Andorra’s passive residency requires EUR 1,000,000 under Law 2/2026 (Omnibus 2, in force 13 February 2026), or EUR 400,000 directed to the Housing Fund, plus a non-refundable EUR 50,000 contribution to the AFA and EUR 12,000 per dependant. Any property counted toward the Andorran threshold must be worth at least EUR 800,000 — a minimum value per property, not a reduced threshold, since the EUR 1,000,000 total still applies — and attracts the foreign investment tax (IEI) at 6% on a first property or 10% on additional ones.

Note the direction of the flows. Andorra’s entry cost is front-loaded and largely retained — the EUR 1,000,000 remains your asset; only EUR 50,000 plus dependant fees are genuinely spent. Greece’s cost is back-loaded and recurring — EUR 100,000 every year for up to 15 years, which totals EUR 1.5 million over the full term for a single filer, and EUR 2.4 million for a family of four. Over a fifteen-year horizon, the jurisdiction that looks cheaper on day one is usually the more expensive one.

Which Suits Which Kind of Person?

Greece suits very large, purely foreign, purely passive incomes for a defined period; Andorra suits almost everything else.

The Greek non-dom regime works best for someone with foreign income comfortably above EUR 1.6 million per year, no intention of generating Greek-source income, no significant succession-planning exposure, a need to remain inside the EU, and a planning horizon that fits within 15 years. For that specific profile, a fixed EUR 100,000 is genuinely efficient, and the absence of a statutory minimum stay adds real flexibility — though that flexibility is not unconditional, since a Greek main residence must be declared and the Greek authorities can still test where a taxpayer’s centre of vital interests actually lies.

Andorra suits business owners and entrepreneurs whose income is active, families whose priority is passing wealth to the next generation, anyone whose income sits below roughly EUR 1 million, and anyone who wants a permanent answer rather than a fifteen-year arrangement. The trade-off is EU membership: Greece is a full EU and Eurozone member; Andorra uses the euro and sits between Spain and France, and its EU association agreement — consented to by the European Parliament in February 2026 and cleared for signature by the Council in July 2026 — still requires Andorran ratification before it takes effect.

For adjacent comparisons, see Andorra vs Italy — Italy’s competing flat tax rose to EUR 300,000 in 2026, three times the Greek figure — and Andorra vs Portugal after NHR. The full picture sits in the Andorra Law & Tax Changes in 2026 hub.

Frequently Asked Questions

1. What is Greece’s non-dom flat tax in 2026?
A flat EUR 100,000 per year covering all foreign-source income, available for up to 15 years, conditional on investing EUR 500,000 in Greece and on not having been Greek tax-resident in 7 of the prior 8 years. Additional family members cost EUR 20,000 each per year.

2. At what income does Greece become cheaper than Andorra?
EUR 1,032,000 of annual income for a single filer, where Andorra’s 0–10% IRPF also produces EUR 100,000. For a family of four paying Greece’s additional EUR 20,000 per member, the crossover rises to roughly EUR 1.63 million.

3. Does the Greek flat tax cover Greek income too?
No. It covers foreign-source income only. Income arising in Greece — salary, business profit, rent, local gains — is taxed under the ordinary progressive regime, up to 44%. Andorra’s 10% cap applies to worldwide income without that distinction.

4. How do inheritance taxes compare?
Greece charges 1% to 40%, progressive by degree of kinship. Andorra charges 0% inheritance tax, 0% gift tax and 0% wealth tax. The Greek flat tax does not exempt succession.

5. Which has lower VAT?
Andorra, by a wide margin: 4.5% (IGI) against Greece’s 24% standard rate.

6. Do I have to live in the country?
The Greek non-dom regime imposes no statutory minimum stay, but applicants must declare a Greek main residence and the authorities can still test where the centre of vital interests lies. Andorran passive residency requires 90 days per year to maintain the permit — though establishing Andorran tax residence is a separate question governed by the 183-day rule.

7. Which is better if I run a business?
Andorra. Corporate tax is a flat 10% (with special regimes at 2%) against Greece’s 22%, and Greek-source business profits fall outside the non-dom flat tax entirely, exposing them to rates up to 44%.

Run Your Own Numbers Before Choosing

The break-even in this comparison is unusually precise — but it only governs income tax. VAT at 24% versus 4.5%, inheritance at up to 40% versus 0%, and a 15-year expiry versus a permanent regime all move the answer, often decisively, in ways a single-year calculation hides.

Use our Tax Savings Calculator to model your position in Andorra against the Greek non-dom regime over your actual planning horizon, then book a free consultation with Axior Global to stress-test the result against your income mix and succession plans.

Sources

Related Axior guides: Andorra vs Italy · Andorra vs Portugal (after NHR) · Andorra vs Cyprus · Andorra vs Malta · Andorra Income Tax (IRPF) · Andorra Corporate Tax · Andorra Wealth, Inheritance & Gift Tax · Andorra Law & Tax Changes in 2026 (pillar hub).

This article is for general information only and does not constitute tax or legal advice. Andorran figures reflect law as of August 2026 and should be verified against the Portal Jurídic and the BOPA; Greek figures reflect the regime as reported for 2026 and should be confirmed with Greek counsel before acting.

Leave a Reply

Your email address will not be published. Required fields are marked *