Europe · EUR
Andorra
Reviewed 2026-06-21
Top income tax
10%
Self-employed SS
Yes
VAT
4.5%
Capital gains
10%
Exit tax
No
Nomad visa
Yes
69
/ 100
Tax efficiency59
Ease to enter79
Ease to exit81
Cost of living67
Internet50
English60
Andorra runs one of Europe's lightest tax systems, with personal income tax topping out at 10 percent, corporate tax at 10 percent, and the lowest VAT in Europe at 4.5 percent. There is no wealth, inheritance, or gift tax, but residents are taxed on worldwide income and CFC rules now apply, so offshore structures do not escape Andorran tax. Solopreneurs can enter through the digital nomad or entrepreneur residence permits created by the 2022 digital economy law, though social security contributions through CASS are mandatory for the self-employed.
Personal income tax
Income tax structureProgressive
Top income tax rate10%
Entry income tax rate5%
Top rate threshold$43,600
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate6.5%
Employer SS rate15.5%
Indirect & other taxes
VAT standard rate4.5%
Capital gains rate10%
Long-hold CGT exemptionYes
Wealth taxNo
Inheritance/gift taxNo
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency183 days
Corporate
Corporate income tax rate10%
WHT on dividends0%
CFC rulesYes
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$4,250
Entrepreneur visaYes
Ease of setup3 / 5
Lifestyle
Cost of living index62
English proficiencyMedium
Civil liberties92
Sources
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.