Taxation in Andorra: Advantages, Limits and Pitfalls for a French National
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The short answer
Andorran taxation is light compared with France, but it is not zero and applies only to those who are genuinely Andorran tax residents. The decisive point for a French national is to leave French tax residence cleanly.
The overall picture
| Subject | What to remember | Page |
|---|---|---|
| Personal income tax | IRPF, progressive capped rates. Top rate: 10 %verified on 09/10/2026 | IRPF |
| Leaving France | French tax residence criteria | Leaving France |
| Companies | Corporate income tax rate: 10 %verified on 09/10/2026 | Corporate income tax |
| Indirect tax | IGI, general rate: 4.5 %verified on 09/10/2026 | IGI and VAT |
What this taxation is not
Where to start
- Understand tax residence.
- Estimate your IRPF according to your income.
- If you have a company, read the corporate income tax and dividends pages.
- Have your situation validated by a tax adviser. See lawyers and gestorias.
A single principle to remember
Andorran figures apply to a French national only if Andorran tax residence is genuine. The 2013 convention allocates the right to tax, with tie-breaker rules and anti-abuse clauses; the clause in article 25.1.d concerns French nationals who are residents of Andorra. See the convention and tax audits and residence.
The profiles covered
Retirees, students, sportspeople and artists, remote workers, directors subject to the exit tax, families. The Andorra-France comparison sets out the differences side by side.
The tools
IRPF simulator, IGI and VAT comparator, tax residence test and day counter.
Tax audit of an Andorran resident: what France can check
A former French resident who has settled in Andorra may be audited on whether the departure is genuine. France and Andorra exchange information, and the authorities look at the home, the activity and the economic interests. A file of evidence prepared in advance is your best defence.
ReadFrance–Andorra tax treaty: what it really provides
Tax relations between France and Andorra are governed by bilateral agreements, notably on exchange of information and avoidance of double taxation. Their practical effect depends on your tax residence and the nature of your income.
ReadAndorra's double tax treaties: list, entry-into-force dates and what they change
Andorra has signed some twenty double tax treaties. Those with France, Spain, Luxembourg, Portugal, Malta, Cyprus, Liechtenstein, the Emirates, San Marino, Croatia, the Netherlands and the United Kingdom are in force; others are signed or awaiting ratification.
ReadFiling the IRPF return in Andorra: who, when, how, refunds and mistakes to avoid
Andorran tax residents file their IRPF return from 1 April to 30 September of the year following the tax period, electronically using the government's digital certificate. Some employees are exempt; the refund is paid by bank transfer within 3 months at most.
ReadDividends from an Andorran company for a French resident
The taxation of dividends depends on the shareholder's tax residence. A shareholder who remains tax-domiciled in France remains in principle taxable in France on these dividends; a shareholder who is genuinely resident in Andorra falls under the Andorran regime, subject to anti-abuse rules.
ReadStudent or trainee between France and Andorra: how allowances are taxed
Under article 19 of the treaty, sums a student or trainee receives for maintenance, studies or training are not taxable in the host State if they come from abroad. This covers family support and grants, not local salaries.
ReadExit Tax: Company Directors and Shareholders Leaving France for Andorra
The exit tax targets taxpayers who hold significant shareholdings and transfer their tax residence out of France. The value threshold is 800,000 €, or holding half of a company's profits. It mainly concerns directors and shareholders, and must be prepared before departure.
ReadLeaving France for Andorra: the formalities checklist
Leaving France for Andorra involves a series of formalities in the right order: informing the tax authorities, the social security funds and the bank, settling housing and insurance, then keeping evidence of your move. The departure has tax effect only if your real residence changes.
ReadIGI and VAT in Andorra: rates, France-Andorra invoicing
The IGI is Andorra's indirect tax on goods and services, comparable to VAT but with lower rates. As Andorra is outside the European Union, transactions with France follow specific customs and VAT rules.
ReadCorporate Income Tax in Andorra: Rate, Regimes and Conditions
Andorran companies are subject to corporate income tax at a single moderate rate, with specific regimes depending on the activity. This low rate is only worthwhile for a company with real activity and substance in Andorra.
ReadIRPF in Andorra: residents' personal income tax explained
Andorran IRPF applies a single rate of 10 % after a tax-exempt personal minimum of 24,000 €. A bonus of 50 % on earned income, capped at 800 €, reduces the effective tax on the first taxable income.
ReadLeaving France for Tax Purposes for Andorra: Tax Residence
For France, you are tax resident there as soon as any one of these three criteria is met: home or main place of stay, main professional activity, or centre of economic interests. Leaving France for tax purposes requires getting out of all three.
ReadRetiring in Andorra: Taxation of Pensions for a French Citizen
A French retiree can settle in Andorra, often through residency without gainful activity. The taxation of their pensions depends on their actual tax residence and on the agreements between the two countries; health cover must be arranged from the outset.
ReadAthletes and Artists Resident in Andorra: Where Is Their Income Taxed?
Under article 16 of the Franco-Andorran treaty, income that an athlete or artist resident in one State derives from activities carried out in the other State is taxable in that other State. An Andorran athlete who competes in France is therefore taxed there on that income.
ReadInheritance and Gifts in Andorra: French Heirs and the Rules
Inheritance rules depend on the applicable law (often tied to the last habitual residence) and on where the assets are located. French heirs may remain subject to French law on certain aspects; a notary or lawyer must organise the transfer.
ReadTeleworking from Andorra for a foreign employer: tax and social security
Teleworking from Andorra for a French employer raises two questions: where the salary is taxed (article 14 of the treaty, according to where the work is performed) and which social security system applies. Genuine tax residence and the physical place of work decide.
Read
Frequently asked questions
Is Andorra a tax haven?
No, the term is misleading. Andorra has introduced taxes (personal income tax, corporate income tax, indirect tax) and takes part in international tax information exchange. It remains less taxed than France, but it is not exempt.
How much income tax do you pay in Andorra?
The top rate in force is: see the IRPF page, where the brackets are detailed and dated.
Is registering in Andorra enough to stop paying tax in France?
No. The French tax authorities judge tax residence on their own criteria. They may consider that you remain taxable in France even if you are an Andorran resident.
Does French income remain taxable in France?
Some French-source income (for example rental income from a property located in France) may remain taxable in France even after departure. It depends on the nature of the income.
Does an Andorran resident pay less tax than in France?
Andorran rates are lower, but the advantage depends on a genuine and recognised tax residence.
Where can the text of the convention be found?
On the tax website: the link appears in the sources of each relevant page.
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.