Rental income tax in Andorra: resident, non-resident, deductions
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- La rédaction
The short answer
Rent received by a resident owner falls under the IRPF, with a flat-rate deduction of 40 % of gross rent under objective determination. A non-resident is taxed under the IRNR, on a base reduced by 20 %. Letting becomes an economic activity from 6 units.
Resident owner (IRPF)
| Item | Rule |
|---|---|
| Objective determination | Deduction of 40 %verified on 09/10/2026 of gross rent (higher rate if affordable housing) |
| Direct determination | Rent less allocated expenses, including depreciation |
| Reduction on residential rent | 5 %verified on 09/10/2026 under conditions (permanent residence, rent capped per m²) |
| Economic activity | From 6 unitsverified on 09/10/2026 units, or high gross rent |
Non-resident owner (IRNR)
- Base: rent reduced by 20 %verified on 09/10/2026.
- Rate: 10 %verified on 09/10/2026 of the base thus reduced.
What this changes for the yield calculation
Net yield depends on taxation: a non-resident and a resident do not have the same base. Calculate with your own assumptions.
The non-resident: base and rate
For a non-resident without a permanent establishment, rental income from property is taxed under the IRNR at a rate of 10 %verified on 12/10/2026, on a base equal to total rent reduced by 20 %verified on 09/10/2026. Annual rent of 12,000 euros thus gives a base of 9,600 euros and a tax of 960 euros.
The resident: two methods
| Method | Principle | For whom |
|---|---|---|
| Objective determination | Flat-rate deduction of 40 %verified on 09/10/2026 of gross rent | Few deductible expenses, simplicity |
| Direct determination | Rent less allocated expenses, including depreciation | High expenses, works, interest |
A reduction of 5 %verified on 09/10/2026 applies to residential rent under conditions (tenant's permanent residence, rent capped at 8 €/m²verified on 09/10/2026 per m² and at 1,250 €verified on 09/10/2026 per month).
When letting becomes an economic activity
From 6 unitsverified on 09/10/2026 let property units, letting is considered an economic activity, with the resulting obligations (IGI, accounting). For fewer units, it is income from real estate capital.
IGI on rent
Rent on residential premises falls under the super-reduced rate of 0 %verified on 09/10/2026, whereas rent on commercial premises is at the general rate of 4.5 %verified on 09/10/2026: see investing in commercial premises and IGI and buying to let.
The French side
A French tax resident who lets a property in Andorra must look at the declaration of foreign-source income and the treaty: see the France–Andorra treaty.
Work out your own case
Free simulators, built on the official values of this page.
- Andorra IRPF simulator (employment, rental and savings income)Estimate your income tax with the tax-free minimum, the bonus relief and family allowances.Open
- Can I buy in Andorra? Non-resident purchase limit checkerHomes, parking spaces, annexes: does your project stay within the caps?Open
- Rental yield calculator for Andorra (gross, net, payback)Gross and net yield from your data, plus the price-per-m² estimator.Open
Frequently asked questions
How is a non-resident's rental income taxed?
Under the non-resident income tax, on a base reduced by a percentage set by law, then at the rate shown on the page.
Can expenses be deducted?
Under direct determination, yes, according to the corporate income tax rules; under objective determination, a flat-rate deduction applies.
How many let properties make you a business?
From the threshold of units shown on the page, or if gross rent exceeds an annual amount set by law.
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.