Andorra or France: full comparison (taxes, residency, daily life)
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- La rédaction
The short answer
Between Andorra and France, the clearest gap is taxation: Andorran IGI is 4.5 % against 20 % VAT in France, and corporate tax is 10 % against 25.8 %. The advantage only holds if your Andorran residence is genuine; housing costs and the job market matter just as much.
The comparison at a glance
| Criterion | Andorra | France |
|---|---|---|
| Consumption tax (standard rate) | IGI: 4.5 %verified on 09/10/2026 | VAT: 20 %verified on 09/10/2026 |
| Corporate income tax | 10 %verified on 09/10/2026 | 25.8 %verified on 09/10/2026 |
| Personal income tax | Single rate of 10 %verified on 09/10/2026 after a tax-free minimum of 24,000 €verified on 09/10/2026 | Top marginal rate: 55.4 %verified on 09/10/2026 |
| Social contributions | CASS, total 22 %verified on 09/10/2026 | Depends on the national scheme |
| Tax residence | More than 183 daysverified on 09/10/2026 of presence | Depends on national law |
The French rates are national statutory rates (2026 edition, including the local share for income and companies). They do not take account of special regimes or social contributions.
Why compare Andorra and France
This is the starting comparison: most French people looking at Andorra compare it with their current situation.
Andorra attracts people first for its taxation: a single-rate personal income tax, a low corporate income tax and a consumption tax far below that of most European countries. But it is not just about rates: moving there requires genuine residence, housing in a tight market and adapting to mountain life.
Taxation in figures
On consumption. For €1,000 of purchases before tax, the tax is €45 in Andorra (general IGI) against €200 in France (VAT at the standard rate).
On companies. For €100,000 of profit, corporate income tax is €10,000 in Andorra against €25,800 in France at the combined statutory rate.
On income. Andorra applies a single rate after a tax-free minimum, with a capped allowance: the effective tax is therefore far lower than the top rate in France. Simulate your own case below.
How France taxes its residents
France taxes its residents on their worldwide income on a progressive scale, with social levies on investment income, a wealth tax on real estate and progressive inheritance duties. A single criterion is enough to be a tax resident: home or main place of stay, main activity, or centre of economic interests.
What you need to become a resident of Andorra
Moving your residence to Andorra is not a simple relocation: you need a residence permit suited to your profile and a genuine presence of at least 183 daysverified on 09/10/2026 a year to be a tax resident. For a residence without gainful activity, the minimum investment is 1,000,000 €verified on 09/10/2026. See the overview of statuses and the passive residency cost simulator.
Who should choose France, and who should choose Andorra
Choosing France suits those who want to stay close to their family, keep French social protection and the depth of the job market.
Choosing Andorra suits those who want a single, lower tax, a mountain setting and accept a genuine relocation, with a tighter market.
The pitfall to avoid
Simulate the gap for your situation
Enter your figures: the tool calculates your Andorran tax and the gap with France on consumption and on a company's profits.
Andorra / France difference
€4,650
Estimated annual saving in Andorra (negative: more expensive)
- Tax and contributions in Andorra on income
- €6,700
- Consumption tax: IGI 4.5% versus VAT 20%
- €4,650
- Corporate income tax: 10% versus 25.8%
- €0
Statutory rates, excluding special regimes. Actual social contributions and cost of living are not modelled: have your case validated.
The treaty between France and Andorra
The treaty of 2 April 2013 allocates the right to tax: see the treaty, leaving France and the risks of an audit. The detailed tax comparison is in Andorra vs France: taxation.
Work out your own case
Free simulators, built on the official values of this page.
Frequently asked questions
Is Andorra taxed less than France?
On paper, yes: general IGI is 4.5 % against 20 % VAT in France, and corporate tax is 10 % against 25.8 %. The advantage depends on your genuine residence.
What is the top income tax rate in France?
The top marginal rate in France is 55.4 %, local shares included and excluding social contributions. Andorra applies a single rate of 10 % after a tax-free minimum.
Can you lose French tax residence by moving to Andorra?
Yes, if none of the French connecting criteria is met and your Andorran residence is genuine.
What are the risks for a French citizen?
An audit of whether the departure is genuine, the exit tax for holders of shareholdings, and the clause in article 25 of the treaty.
Do I need to leave France to benefit from Andorra?
Yes: to benefit from Andorran taxation, you must become a genuine Andorran resident, with a presence of more than 183 days a year and a real home, and take your activity out of your former tax residence.
How can I simulate the gap between Andorra and France?
Use the comparison tool on this page: it calculates Andorran tax and the gap on consumption and profits, based on your figures.
Going further
Official sources
This information is general and is not personalised legal, tax or financial advice. It is verified as of the date shown and may change.