Andorra or France: tax comparison (income tax, VAT, company tax)
- Updated on
- La rédaction
The short answer
Between Andorra and France, the sharpest differences concern the consumption tax (IGI of 4.5 % against VAT of 20 %) and corporate income tax (10 % against 25 %). Genuine tax residence is the condition for any advantage.
Comparable figures
| Tax | Andorra | France |
|---|---|---|
| Consumption tax | General IGI: 4.5 %verified on 09/10/2026 | Standard VAT: 20 %verified on 09/10/2026 |
| Corporate income tax | 10 %verified on 09/10/2026 | 25 %verified on 09/10/2026 (standard rate) |
| Personal income tax | Single rate of 10 %verified on 09/10/2026 after an exempt minimum | Progressive scale |
| Private pensions | Taxed in the state of residence (treaty) | See pensions |
| Property capital gain | Resident sliding scale | French regime of its own |
| Inheritance | No specific inheritance tax | Duties according to family relationship |
What to keep in mind
- The advantage only holds if your Andorran tax residence is genuine: see the test.
- Andorra has its own costs: CASS contributions (22 %verified on 09/10/2026 in total), housing costs, health insurance.
- The 2013 treaty allocates the right to tax: see the treaty.
Compare IGI and VAT on a purchase
Andorran IRPF on an example
For a single person with taxable income of 60,000 euros, the exempt personal minimum of 24,000 €verified on 09/10/2026 brings the base down to 36,000 euros, taxed at the single rate of 10 %verified on 09/10/2026, i.e. 3,600 euros before the bonus and deductions. The French calculation depends on the family quotient and the progressive scale: use the French tax administration's simulator to compare.
Family benefits on the Andorran side
Minimum of 40,000 €verified on 09/10/2026 with a spouse who has no income, deduction of 1,000 €verified on 09/10/2026 per dependant, bonus of 50 %verified on 09/10/2026 on earned income capped at 800 €verified on 09/10/2026. See family taxation.
The other differences
| Subject | Andorra | France |
|---|---|---|
| Inheritance in the direct line | 0 %verified on 09/10/2026 | Duties with an allowance of 100,000 €verified on 09/10/2026 per parent and per child |
| Property capital gain | Exemption after 10 yearsverified on 09/10/2026 for a resident | French regime of its own |
| Dividends from shareholdings | Exempt from corporate income tax under conditions: see holding company | Parent-subsidiary regime with a share of 5 %verified on 12/10/2026 |
The factor the table does not show
The clause of article 25.1.d of the treaty allows France to tax its nationals resident in Andorra as if the treaty did not exist: France may tax French nationals resident in Andorra as if the convention did not exist; implementation is settled by mutual agreement between the competent authoritiesverified on 09/10/2026 A rate gap is only an advantage if the move is genuine and recognised.
Work out your own case
Free simulators, built on the official values of this page.
- Andorra vs another European country: taxes, VAT and companiesQuantify the tax gap between Andorra and 33 European countries.Open
- Andorra IRPF simulator (employment, rental and savings income)Estimate your income tax with the tax-free minimum, the bonus relief and family allowances.Open
- Leaving France for Andorra: are you still a French tax resident?The three criteria for French tax residence, in a few questions.Open
Frequently asked questions
Is Andorra a tax haven?
Andorra exchanges tax information with France and applies its own taxes: IRPF, IGI, corporate income tax.
What is the biggest gap?
The consumption tax and corporate income tax, but the cost of living and contributions matter too.
Should you compare case by case?
Yes: your situation (income, family, activity) changes the result.
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.