Buying a car in Andorra: a good idea? Prices, VAT and customs
- Updated on
- La rédaction
The short answer
Buying a car in Andorra can be worthwhile thanks to an indirect tax lower than French VAT, but a vehicle brought into France must clear customs and the real cost depends on your situation. A French resident cannot freely drive a vehicle registered in Andorra in France.
Why people think of it
The Andorran indirect tax (IGI, general rate of 4.5 %verified on 09/10/2026) is markedly lower than French VAT. This explains the appeal of Andorran dealerships for vehicles.
What it really involves
| Situation | What to know |
|---|---|
| You live in Andorra and stay in Andorra | Andorran registration, local insurance, Andorran roadworthiness test |
| You live in France and buy in Andorra | The vehicle must be cleared through customs in France; French VAT applies on import |
| You bring in an Andorran vehicle already in your name | A special regime may apply in the event of a transfer of residence; to be confirmed with customs |
The steps in France generally include a customs declaration, a tax clearance certificate, a certificate of conformity (or individual approval) and a French roadworthiness test before registration.
Before buying
- Clarify where you actually live.
- Ask French customs for the exact formalities and taxes for your case.
- Compare the total price (taxes, customs clearance, registration certificate) with a purchase in France.
See also vehicle and licence in Andorra.
The calculation to make before buying
For a car at 30,000 euros before tax, IGI at 4.5 %verified on 09/10/2026 comes to 1,350 euros against 6,000 euros of VAT at the rate of 20 %verified on 09/10/2026: the gross difference is 4,650 euros. This calculation takes into account neither the customs duties and VAT due if the vehicle is used in France by a French resident, nor registration, warranty and after-sales service.
The decisive questions
| Question | Why |
|---|---|
| Where will the vehicle be driven? | A vehicle used in France by a French resident raises customs and tax questions |
| Who is the buyer? | Andorran resident or not |
| What warranty? | Valid in France or only in Andorra |
| What registration? | To be confirmed with the competent department: see vehicle and licence |
For a company
IGI paid on a vehicle is deductible only to the extent the vehicle is used for the business: see IGI and VAT.
Our view
Do not rely on the tax gap alone: have customs and registration checked in writing before you sign.
Work out your own case
Free simulators, built on the official values of this page.
Frequently asked questions
Is a car cheaper in Andorra?
The Andorran indirect tax (IGI, 4.5 %) is lower than French VAT, but importing into France adds customs clearance and French VAT.
Can you drive in France with an Andorran car?
A French resident generally cannot freely use a vehicle registered in Andorra in France. Check with customs.
Which documents are needed to import into France?
Generally: customs declaration, tax clearance certificate (quitus fiscal), certificate of conformity or individual approval, roadworthiness test, then a registration certificate application.
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.