Andorra's taxes at a glance
Structure used: Digital nomad residence (D.3) with tax residency in Andorra, freelance income from foreign clients taxed under IRPF: 10% above the EUR 24,000 personal minimum less the bonus of up to EUR 800; private health insurance instead of CASS. Bands are the effective tax on profit for a remote worker using this structure, with clients abroad and costs of 15% of revenue.
Andorra tax residency: more than 183 days or your economic base
Article 8 of Andorra's personal income tax law makes you a tax resident if either of 2 things is true in the calendar year, and it adds a presumption:
- More than 183 days. You spend more than 183 days in Andorra in the calendar year. Sporadic absences count as days in Andorra unless you prove you are tax resident in another country.
- Your economic base. The main core or base of your activities or economic interests is in Andorra, directly or indirectly.
- Your family. You are presumed resident, unless you prove otherwise, when your spouse and minor children are Andorran tax residents.
The immigration side runs on a different clock. The digital nomad residence, like the other residence permits without work, asks you to live in Andorra for at least 90 days a year, and holding it does not make you a tax resident. Between 90 and 183 days you are in a gap: resident for immigration, possibly not for tax, and still exposed to the country you spend the rest of the year in.
For most people moving from Spain, that gap is where the risk sits, because Spain's residence test uses the same 2 limbs of more than 183 days or the center of economic interests. The way to close it is to be clearly Andorran: more than 183 days, your business run from there, and a tax residence certificate from the Tax and Borders Department.
Becoming an Andorran tax resident on the digital nomad permit
Works
You rent an apartment in Escaldes, register with the comú, and spend 220 days a year in Andorra, with short client trips to London and Lisbon that count as Andorran days anyway. Your clients are abroad but you run the business from Andorra, so you are resident there, pay 10% on profit above €24,000 (about $27,300), less the €800 (about $910) bonus, and hold a certificate to show any other tax office.
Fails
You take the permit, spend 95 days in Andorra and 190 days in your old apartment in Barcelona, where your partner still lives. You are not an Andorran tax resident, Spain treats you as resident on worldwide income at Spanish rates, and the Andorran permit does nothing to stop it.
Andorra's income tax in 2026: 10% with a €24,000 allowance
Andorra has one income tax rate of 10%. The general tax base, which holds work, business and property income, is first reduced by a personal minimum of €24,000 (about $27,300). If you have work, business or property income, article 46 then takes a bonus of half the tax on the base above €24,000 (about $27,300) off your bill, capped at €800 (about $910). In practice, work and business income is taxed at 0% up to the allowance, 5% from there to €40,000 (about $45,500) and 10% above.
Andorran income tax on work or business profit (10% above €24,000, less the bonus of up to €800)
| Profit for the year | Income tax | Share of profit |
|---|---|---|
| €40,000 (about $45,500) | €800 (about $910) | 2.0% |
| €60,000 (about $68,300) | €2,800 (about $3,190) | 4.7% |
| €100,000 (about $114,000) | €6,800 (about $7,740) | 6.8% |
| €200,000 (about $228,000) | €16,800 (about $19,100) | 8.4% |
The allowance can grow. The personal minimum rises to €40,000 (about $45,500) when your spouse or registered partner lives with you and has no income in the general base, and each child under 25 who lives with you takes another €750 (about $853) off the base. Savings income such as interest and foreign dividends sits in a separate base with its own €3,000 (about $3,410) allowance, taxed at 10% with no bonus.
Foreign income, remote work and social security in Andorra
Andorra taxes residents on all their income, whatever its type or source, and there is no exemption for new arrivals. Freelance work done from an apartment in Andorra la Vella for clients in Paris is Andorran income. Tax already paid abroad is credited under article 48, up to the Andorran tax on the same income; the credit is worked out for all your foreign income together, and any part you cannot use carries forward for 3 years.
Social security depends on your route. Digital nomad residence holders are outside the CASS self-employed system, because they hold none of the Andorran business or professional registrations that define it, and they carry private health and incapacity insurance instead. A self-employed professional registered in Andorra, such as someone on the route for professionals with international reach, pays 22% on a base tied to the average salary: €587.95 (about $669) a month from €24,000 (about $27,300) of net income, rising in steps to €808.44 (about $920) a month above €50,000 (about $56,900).
The route you hold decides which of these applies to you, and it matters more than the tax rate, which is the same 10% on both.
Digital nomad residence vs the route for professionals with international reach: the tax and social security side
| Digital nomad residence (D.3) | Professional with international reach (D.1.2) | |
|---|---|---|
| Who you work for | Clients or an employer abroad; paid activity in Andorra needs its own authorization | At least 85% of services used outside Andorra, so up to 15% can be local |
| Social security | Private health and incapacity insurance, no CASS | CASS self-employed at 22%: €587.95–808.44 a month |
| Income tax once resident | 10% above €24,000, less the bonus | 10% above €24,000, less the bonus |
| Days a year for the permit | At least 90 | At least 90 |
Filing and staying compliant in Andorra
The annual return is filed between April 1 and September 30 of the year after the tax year, and you work out and pay the tax when you file. The permit conditions sit on the government's digital nomad page.
Your year as an Andorran tax resident
- Register with the comú of your parish within 1 month of the permit being granted.
- Keep your owned or rented home and your health and incapacity insurance in force for the whole permit.
- Log your days: at least 90 for the permit, more than 183 for tax residence, with short trips abroad counted as Andorran days.
- Ask the Tax and Borders Department for a tax residence certificate once you qualify, and give it to any country that still treats you as resident.
- File your income tax return between April 1 and September 30 of the following year, with foreign interest and dividends in the savings base.
- Keep the foreign tax documents for any income taxed abroad, because the credit has to be backed by them.
David's note
I tell people to treat Andorra's 90-day permit rule as the floor for keeping the permit and nothing more. If the plan is to pay 10%, I would live there more than 183 days, run the business from there, and get the residence certificate in hand before the old country asks the question.
Ways to move to Andorra
| Route | Minimum income or investment | Permit length | Makes you tax resident | Status |
|---|---|---|---|---|
| Residence for digital nomads (D.3, residence without work) Source: govern.ad, checked September 29, 2026. The page lists no deposit with the Andorran Financial Authority for this routeDigital nomad visa | €4,706 (about $5,350) a month Source: govern.ad, checked September 29, 2026. The digital nomad page asks for sufficient economic means 'as set by regulation' without a figure. The residence-without-work page asks for annual income above 300% of the annual minimum wage; at the minimum wage from July 1, 2026 (EUR 1,568.67 a month, Decree 253/2026) that is EUR 56,472 a year, EUR 4,706 (about $5,350) a month | 2 years, renewable | With enough daysNo tax break: the permit needs only 90 days a year, and holders who stay more than 183 days or base their economic interests in Andorra pay IRPF on worldwide income at up to 10%. | Open |
| Residence for professionals with international reach (D.1.2) Source: govern.ad, checked September 29, 2026Self-employed route | Investment of €47,500 (about $54,000) Source: govern.ad, checked September 29, 2026. Unremunerated deposit with the Andorran Financial Authority, plus EUR 9,500 per dependant | 2 years, renewable | With enough daysAllows a professional activity based in Andorra with at least 85% of services used abroad; taxed under IRPF like any resident. | Open |
| Residence without work (passive residence) Source: govern.ad, checked September 29, 2026Passive income route | €4,706 (about $5,350) a month Source: govern.ad, checked September 29, 2026. Annual income above 300% of the annual minimum wage, plus 100% per dependant: EUR 1,568.67 x 12 x 3 = EUR 56,472 a year from July 1, 2026 | 2 years, renewable | With enough daysThe permit needs 90 days a year; tax residency follows the 183-day or economic-interests test. | Changed |
Running your own company from Andorra
A foreign company you run from Andorra can become Andorran. Under article 7 of the corporate tax law, a company is resident if it is incorporated in Andorra, has its registered office there, or has its place of effective management there, meaning the general management and control of all its business is exercised from Andorra. An Estonian OÜ whose only director lives in Escaldes and takes every decision there fits that description, and it then owes Andorran corporate tax, which article 41 sets at 10%.
An Andorran company pays the same 10%. Dividends paid by a company resident in Andorra and subject to Andorran corporate tax are exempt in the hands of a resident shareholder, so profit taxed at 10% inside the company reaches you with no second layer. Managing that company for pay is paid activity in Andorra, though, which needs its own immigration authorization on top of the digital nomad permit and brings paid administrators into CASS.
Dividends from a foreign company are savings income: 10% above the €3,000 (about $3,410) savings allowance, with credit for any tax withheld abroad on them. The personal income tax law has no CFC rule for individuals, so profit a foreign company keeps is not taxed in your hands until it is paid out, provided the company is not managed from Andorra in the first place.
US citizens in Andorra: no treaty, no totalization
Andorra is not on the IRS list of income tax treaties, and there is no totalization agreement, so you file a US return on worldwide income every year. The foreign earned income exclusion of $132,900 for 2026 can shelter most freelance profit from US income tax. The exclusion does not touch US self-employment tax, which stays due on your net earnings; on the digital nomad permit you at least pay no CASS on top of it.
The costly mistakes in Andorra
The 90-day permit is not a 90-day tax residence
Andorran residence permits need 90 days a year; Andorran tax residence needs more than 183 days or your economic base in the country. A holder who spends 100 days in Andorra and most of the year elsewhere is often not an Andorran tax resident, cannot get the certificate, and stays taxable in the country where they actually live, on worldwide income and at that country's rates.
The second mistake is assuming foreign income escapes Andorran tax. It does not: foreign dividends and interest are taxed at 10% above the €3,000 (about $3,410) savings allowance, with no work-income bonus to soften it.
The third is picking up local work on the digital nomad permit. The permit is for work that needs no fixed location, and any paid activity in Andorra, such as serving Andorran clients or drawing pay as the manager of an Andorran company, needs its own immigration authorization.
Who Andorra suits, and who it does not
Good fit
- Remote workers earning $100,000 or more: 10% on income above €24,000 (about $27,300) less up to €800 (about $910) comes to about 6% of profit at $100,000 and 8% at $250,000.
- Founders who move their business to Andorra: 10% corporate tax, and dividends from Andorran companies are exempt for resident shareholders.
- People who want a residence permit that needs only 90 days a year in the country.
Poor fit
- Anyone seeking 0% on foreign income: residents pay IRPF on worldwide income, including foreign dividends.
- People who cannot rent or buy a home in Andorra, or who fall outside the yearly quota.
- Passive investors on a budget: passive residence now needs €1,000,000 (about $1.14 million) in Andorran assets per the 2026 reform.
- US citizens, who stay taxable in the US.
Recent tax and visa changes in Andorra
Minimum wage raised to EUR 1,568.67 a month (Decree 253/2026), which sets the passive residence income floor at EUR 56,472 a year. cass.ad
Law 2/2026 (Omnibus 2) in force: passive residence investment raised to EUR 1,000,000 (EUR 400,000 via the Housing Fund) and the EUR 50,000 payment to the Andorran Financial Authority made non-refundable. rtva.ad
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