Andorra or Monaco: full comparison (taxes, residency, daily life)

The comparison at a glance

Monaco's rates are national statutory rates (2026 edition, including the local portion for income and corporate tax). They do not take account of special regimes or social contributions.

Why compare Andorra and Monaco

Monaco and Andorra are the two small principalities most often cited by French people who want to leave France. The major difference: in Monaco, a French person gains no tax advantage; in Andorra, the 2013 treaty contains a clause that has not been implemented to date.

Andorra attracts first by 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 about rates: moving there requires genuine residency, housing in a tight market and adjusting 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 €200 in Monaco (VAT at the standard rate).

On companies. For €100,000 of profit, corporate income tax is €10,000 in Andorra against €25,000 in Monaco 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 well below Monaco's top rate. Simulate your own case below.

How Monaco taxes its residents

Monaco does not subject its residents to income tax, except French people who move their home there: a 1963 treaty ties them to French tax on all their income, subject to conditions. Consumption tax follows that of France, and the profits tax targets companies that earn a significant share of their business outside the principality.

What it takes to become a resident in Andorra

Moving your residency to Andorra is not a simple relocation: you need a residence permit suited to your profile and real 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 statuses and the passive residency cost simulator.

Who should choose Monaco, who should choose Andorra

Choosing Monaco suits those who are non-French, who want the Monegasque setting and whose housing budget has no limit.

Choosing Andorra suits those who are French and are looking for a setting where income tax applies at a single rate, at a housing cost well below Monaco's.

The trap to avoid

Simulate the gap for your situation

Enter your figures: the comparison tool calculates your Andorran tax and the gap with Monaco on consumption and on a company's profits.

Compare with another country

And if you are French?

A French person who moves to Andorra remains subject to French connecting rules: a single criterion is enough to remain tax resident in France. Test your situation with the tax residence tool and read the treaty between France and Andorra.