Andorra Tax Residency 2026: The 183-Day Rule & How to Become a Tax Resident

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

Andorra Tax Residency 2026: The 183-Day Rule & How to Become a Tax Resident

TL;DR. You become an Andorran tax resident in 2026 by meeting one of two tests under Llei 5/2014: spending more than 183 days of the calendar year in Andorra, or having the main centre of your economic interests in Andorra. A third route is a legal presumption — you are presumed resident if your non-separated spouse and dependent minor children habitually live in Andorra. Tax residency is not the same thing as an immigration permit: holding a passive or active residence permit helps prove your status, but the 183-day and centre-of-interests tests are what actually make you liable to Andorran IRPF (income tax capped at 10%) on your worldwide income. Once resident, you benefit from a 0–10% income tax, 0% wealth, inheritance, gift and exit tax, and a network of 22 double tax treaties that decide who taxes you when two countries both claim you. The hardest part is usually not becoming Andorran resident — it is cleanly ending your old tax residency.

What Is Tax Residency in Andorra?

Tax residency is the legal status that makes you liable to Andorran income tax (IRPF) on your worldwide income, and it is defined by Llei 5/2014, the law that governs the IRPF. If you are a tax resident, Andorra taxes what you earn anywhere in the world within its 0–10% scale. If you are not a tax resident, Andorra taxes only your Andorra-source income under the separate non-resident income tax (IRNR).

The distinction matters because “residency” means two different things. There is immigration residency — the permit that lets you live in the Principality legally (for example, passive residency or active/self-employed residency). And there is tax residency — the status that determines which country taxes your income. You need the immigration permit to live in Andorra, but it is the tax-residency tests below that determine your actual tax bill.

How Many Days Do You Need to Spend in Andorra to Be a Tax Resident?

More than 183 days in the calendar year is the primary test. According to Llei 5/2014, an individual is an Andorran tax resident if they spend more than 183 days of the calendar year within Andorran territory. Sporadic absences count towards the 183 days unless you can prove tax residency in another country during that time.

The 183-day rule is a physical-presence test, and it is deliberately hard to game. Days spent abroad on holiday, business trips or short absences generally still count as Andorran days unless you were genuinely tax-resident elsewhere. In practice, HNWIs who want a clean Andorran tax residency plan to physically spend the majority of the year in the Principality and keep evidence — flight records, card transactions, utility usage — that supports it. This evidence becomes critical if a former high-tax country later challenges your departure.

What Is the Centre-of-Economic-Interests Test?

Even if you do not spend 183 days in Andorra, you are an Andorran tax resident if the main nucleus or base of your economic activities or interests is located in Andorra. This is the second, independent test in Llei 5/2014, and it captures people whose economic life is centred on Andorra regardless of exact day counts.

“Centre of economic interests” is assessed on the facts: where your business is managed, where your main income is generated, where your key assets and investments sit, and where your professional activity is based. For an entrepreneur who runs an Andorran company (taxed at the 10% corporate rate under Llei 95/2010) and draws income from it, the centre of interests often points clearly to Andorra. This test is why substance matters — an Andorran address alone is not enough; the economic reality has to be Andorran too.

Are You Automatically a Tax Resident if Your Family Lives in Andorra?

You are presumed to be an Andorran tax resident if your non-separated spouse and your dependent minor children habitually reside in Andorra. This family presumption is the third pillar of the Llei 5/2014 residency definition and it operates as a rebuttable assumption: unless you prove otherwise, Andorra treats you as resident where your immediate family lives.

For families relocating together, this presumption usually reinforces the intended outcome — the whole household becomes Andorran tax resident. It matters most in split-location situations, where one spouse works abroad while the family settles in Andorra. In those cases the presumption, combined with the 183-day and centre-of-interests tests, needs careful planning so that the working spouse’s residency position is clear and defensible on both sides of the border.

Key Facts: Andorra Tax Residency (2026)

The table below summarises the figures and thresholds that define Andorran tax residency and the tax regime that comes with it.

Item Detail (2026)
Primary residency test More than 183 days/calendar year in Andorra
Second test Centre of economic interests in Andorra
Third test Family presumption (spouse + minor children resident)
Governing law Llei 5/2014 (IRPF)
Income taxed once resident Worldwide income
Income tax rate (IRPF) 0% to EUR 24,000; 5% EUR 24,001–40,000; 10% above EUR 40,000
Non-resident alternative Andorra-source income only, under IRNR
Wealth / inheritance / gift / exit tax 0%
Capital gains Within 0–10%; 0% after a 10-year holding period
Passive residency investment EUR 1,000,000 (or EUR 400,000 to the Housing Fund)
Non-refundable AFA state fee (passive) EUR 50,000 + EUR 12,000 per dependant
Double tax treaties in force 22
Tax information exchange OECD CRS (automatic)

Do You Need a Residence Permit to Be a Tax Resident?

In practice, yes — you need legal immigration status to live in Andorra long enough to meet the tax tests, and your permit is a key piece of evidence of residency. The two main routes are passive residency (for those not working actively in Andorra, requiring an investment of EUR 1,000,000, or EUR 400,000 if channelled into the Housing Fund, under Llei 2/2026) and active or self-employed residency (for those running a business or working in Andorra).

The permit and the tax status work together. Immigration law sets a minimum physical-presence requirement to keep the permit — for passive residents this is a minimum number of days per year — while tax law uses the 183-day and centre-of-interests tests to establish tax residency. HNWIs who want the full 0–10% treatment aim to comfortably exceed both thresholds, not just scrape past the immigration minimum, so that their tax residency is unambiguous.

How Do You Prove You Are an Andorran Tax Resident?

You prove Andorran tax residency with a tax residency certificate issued by the Andorran tax authority, backed by evidence of physical presence and economic substance. The certificate is the formal document a foreign tax authority or bank will ask for, and it is issued on the basis that you genuinely meet the Llei 5/2014 tests.

Supporting evidence typically includes your residence permit, a long-term home in Andorra (owned or rented), utility and consumption records, local bank accounts, and — where relevant — an Andorran company and CASS social-security registration (CASS contributions total 22%, split 15.5% employer and 6.5% employee). The stronger your factual footprint, the harder it is for a former country of residence to argue you never really left. Building this evidence base from day one is one of the most important practical steps in a relocation.

What Happens if Two Countries Both Claim You as a Tax Resident?

If both Andorra and another country consider you resident in the same year, the tie-breaker rules of the applicable double tax treaty decide which country wins. Andorra has 22 double tax treaties in force in 2026, and each contains a tie-breaker sequence based on the OECD model: permanent home, then centre of vital interests, then habitual abode, then nationality, and finally mutual agreement between the two tax authorities.

This is why a clean break from your previous country matters so much. If you keep a permanent home, a spouse, or your main economic interests in your former country, its tax authority can invoke the tie-breaker to keep taxing you — even while you are physically in Andorra. Getting the tie-breaker to resolve in Andorra’s favour requires aligning the facts: your permanent home, your family, and your economic centre should all point to the Principality. Where no treaty exists, both countries can tax under their domestic rules, and only unilateral relief may apply.

How Do You Exit Your Previous Tax Residency Cleanly?

You end your previous tax residency by breaking the ties that country uses to claim you — physical presence, permanent home, family and economic interests — and by completing any formal deregistration or exit procedures it requires. This is usually the hardest and most litigated part of a relocation, because high-tax countries are reluctant to let residents go.

Some countries impose an exit tax on unrealised gains when you leave, apply a “trailing” tax residency for a period after departure, or scrutinise whether your move is genuine. Andorra itself imposes no exit tax and does not penalise you for arriving, but your former country may. The practical playbook is to time your departure around the calendar year, dispose of or restructure ties that create residency in the old country, retain evidence of your Andorran presence, and — where a treaty applies — rely on the tie-breaker. Because this interacts with the specific rules of the country you are leaving, it is the stage where professional, cross-border advice pays for itself.

When Does Andorran Tax Residency Start?

Andorran tax residency is generally assessed by the calendar year: you are treated as resident for a full tax year if you meet the tests during that year. There is no partial-year split in the way some countries operate, so the year of arrival needs to be planned deliberately.

For most relocations, this means arranging the move so that the first full year of Andorran residency is clean — you have exceeded 183 days, established your home and economic centre, and settled any residual liability in your former country. Arriving late in the year, or keeping strong ties abroad through the first year, can create an overlap year where two countries both assert residency and the treaty tie-breaker has to be applied. Careful sequencing of the departure and arrival is the single most valuable piece of planning for anyone moving to Andorra for tax reasons.

Frequently Asked Questions

How many days do I need to live in Andorra to be a tax resident?
More than 183 days in a calendar year is the primary test under Llei 5/2014. Sporadic absences generally still count as Andorran days unless you can prove tax residency in another country during that time.

Is tax residency the same as having a residence permit in Andorra?
No. A residence permit (passive or active) gives you the legal right to live in Andorra and is strong evidence of residency, but tax residency is established separately by the 183-day rule, the centre-of-economic-interests test, or the family presumption.

Can I be an Andorran tax resident without spending 183 days there?
Yes. If the main centre of your economic interests is in Andorra, or if your spouse and dependent minor children habitually live there, you can be treated as an Andorran tax resident even without meeting the 183-day count. These tests are independent of one another.

What tax do I pay once I am an Andorran tax resident?
You are taxed on your worldwide income under the IRPF: 0% on the first EUR 24,000, 5% between EUR 24,001 and EUR 40,000, and 10% above EUR 40,000. There is no wealth, inheritance, gift or exit tax, and capital gains can reach 0% after a 10-year holding period.

How do I prove I am tax resident in Andorra?
You obtain a tax residency certificate from the Andorran tax authority and support it with evidence — your residence permit, a permanent home, utility and consumption records, local banking, and (where relevant) an Andorran company and CASS registration.

What if my old country still considers me tax resident?
If a double tax treaty exists — Andorra has 22 in force — its tie-breaker rules (permanent home, centre of vital interests, habitual abode, nationality, then mutual agreement) decide which country taxes you. A clean break from your former country’s ties is essential to win the tie-breaker.

Does Andorra charge an exit tax if I leave later?
No. Andorra imposes no exit tax, no wealth tax, no inheritance tax and no gift tax. Any exit tax exposure on a move usually comes from the country you are leaving, not from Andorra.

Sources

Related Reading

Next Steps

Establishing Andorran tax residency is as much about cleanly leaving your old country as it is about arriving in the new one — and the year you move is the year that matters most.

[Calculate Your Tax Savings →] Use our Andorra Tax Savings Calculator to compare your current worldwide tax bill against the Andorran IRPF scale, and see what a clean residency change is worth over five and ten years.

[Book a Free 30-Minute Consultation →] Speak with Josep Fusté Badana — ICLG Contributing Author on Andorran Private Client Laws and Regulations — about sequencing your move, meeting the 183-day and centre-of-interests tests, and handling the treaty tie-breaker with the country you are leaving.

Author: Josep Fusté Badana — Senior Tax & Residency Advisor, Axior Global, SLU. ICLG Contributing Author — Private Client Laws and Regulations (Andorra). Licensed Tax Advisor — Principality of Andorra. Member, Andorran Association of Tax Advisors.

This article is for general information and does not constitute tax or legal advice. Tax residency and the exit rules of your current country depend on your specific facts; individual advice is required before any relocation or tax-residency change.

Leave a Reply

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