Andorra vs Malta: full comparison (taxes, residency, daily life)
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- La rédaction
The short answer
Between Andorra and Malta, the clearest gap is taxation: Andorran IGI is 4.5 % against 18 % VAT in Malta, and corporate income tax is 10 % against 35 %. The advantage only holds if your Andorran residency is genuine; housing costs and the job market matter just as much.
The comparison at a glance
| Criterion | Andorra | Malta |
|---|---|---|
| Consumption tax (standard rate) | IGI: 4.5 %verified on 09/10/2026 | VAT: 18 %verified on 09/10/2026 |
| Corporate income tax | 10 %verified on 09/10/2026 | 35 %verified on 09/10/2026 |
| Personal income tax | Single rate of 10 %verified on 09/10/2026 after an exempt minimum of 24,000 €verified on 09/10/2026 | Top marginal rate: 35 %verified on 09/10/2026 |
| Social contributions | CASS, total 22 %verified on 09/10/2026 | Depends on the national scheme |
| Tax residency | Presence of more than 183 daysverified on 09/10/2026 | Depends on national law |
The Maltese 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 Malta
Malta attracts entrepreneurs in digital, gaming and finance, within the European Union. Comparing it with Andorra sets an EU member state against a principality outside the EU.
Andorra attracts people first through its taxation: a single-rate income tax, a low corporate income tax and a consumption tax far below most European countries. But it is not just a matter of rates: settling there requires genuine residency, housing in a narrow market and adapting to life in the mountains.
Taxation in figures
On consumption. For €1,000 of purchases before tax, the tax is €45 in Andorra (general IGI) against €180 in Malta (VAT at the standard rate).
On companies. For €100,000 of profit, corporate income tax is €10,000 in Andorra against €35,000 in Malta at the combined statutory rate.
On income. Andorra applies a single rate after an exempt minimum, with a capped allowance: the effective tax is therefore much lower than the top rate in Malta. Simulate your own case below.
How Malta taxes its residents
Malta applies a progressive scale to residents, with a favourable regime for resident non-domiciled individuals whose taxation depends on the income remitted to Malta. Corporate income tax has a high statutory rate, but a system of refunds to shareholders often brings the effective burden down to a much lower level. English is an official language.
What you need to become a resident in 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 residency without gainful activity, the minimum investment is 1,000,000 €verified on 09/10/2026. See the overview of the statuses and the passive residency cost simulator.
Who should choose Malta, and who should choose Andorra
Choosing Malta suits those who want to stay in the European Union, an English-speaking setting and an ecosystem of digital businesses.
Choosing Andorra suits those who prefer a low, readable statutory rate of corporate income tax, with no refund mechanism to understand.
The pitfall to avoid
Simulate the gap for your situation
Enter your figures: the comparison tool calculates your Andorran tax and the gap with Malta on consumption and on a company's profits.
Andorra / Malta difference
€4,050
Estimated annual saving in Andorra (negative: more expensive)
- Tax and contributions in Andorra on income
- €6,700
- Consumption tax: IGI 4.5% versus VAT 18%
- €4,050
- Corporate income tax: 10% versus 35%
- €0
Statutory rates, excluding special regimes. Actual social contributions and cost of living are not modelled: have your case validated.
What if you are French?
A French person who settles in Andorra remains subject to French connecting rules: a single criterion is enough to remain tax-domiciled in France. Test your situation with the tax domicile tool and read the treaty between France and Andorra.
Work out your own case
Free simulators, built on the official values of this page.
Frequently asked questions
Is Andorra taxed less than Malta?
On paper, yes: the general IGI is 4.5 % against 18 % VAT in Malta, and corporate income tax is 10 % against 35 %. The advantage depends on your genuine residency.
What is the top rate of income tax in Malta?
The top marginal rate in Malta is 35 %, local shares included and excluding social contributions. Andorra applies a single rate of 10 % after an exempt minimum.
What is the real rate of corporate income tax in Malta?
The statutory rate is high, but a refund to shareholders can greatly reduce the effective burden, subject to conditions.
Is Malta simpler than Andorra?
It belongs to the European Union, which makes trade easier, but its tax rules are more complex.
Do you have to leave Malta to benefit from Andorra?
Yes: to benefit from Andorran taxation, you must become an Andorran resident in fact, with a presence of more than 183 days a year and a genuine home, and take the financial year out of your former tax residence.
How can you simulate the gap between Andorra and Malta?
Use the comparison tool on this page: it calculates Andorran tax and the gap on consumption and profits, based on your own 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.