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

The comparison at a glance

Spain'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 Spain

Spain is the closest neighbour: Catalonia borders Andorra, many Andorran employees live on the Spanish side, and the Catalan language is shared. Many French people hesitate between a home in the sun in Spain and Andorran residency in the mountains.

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 €210 in Spain (VAT at the standard rate).

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

How Spain taxes its residents

Spain taxes its residents on their worldwide income, using a progressive scale to which brackets set by each autonomous region are added. You become a tax resident there by passing the threshold of days of presence or by having your centre of economic interests there. A wealth tax exists, with large differences from one region to another, and residents have obligations to declare their assets abroad. A special regime exists for certain workers who move there, subject to conditions.

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 Spain, who should choose Andorra

Choosing Spain suits those looking for the climate, big cities, a broad property market and housing prices that are often more affordable than in Andorra's central parishes.

Choosing Andorra suits those who want a single-rate income tax, no wealth tax and a small-scale administration, with a higher cost of housing and life at altitude.

The trap to avoid

Simulate the gap for your situation

Enter your figures: the comparison tool calculates your Andorran tax and the gap with Spain 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.