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New tourism tax in Andorra 2022

• July 11, 2022
• Posted by: andorrasolutions
• Category: News Andorra

As of 1 July, Andorra introduced a tourist tax for stays in tourist accommodation ranging from 1 to 3 euros per night. The aim of this new tax is to be used exclusively to boost tourism in the country, to promote it or to promote sustainability. The Andorran government estimates annual revenue of around 12 million euros.

It is possible that this type of direct tax will be familiar to tourists as it is currently applied in other European cities such as Paris, Malta, Lisbon, the Balearic Islands, etc.

The rules for the application of this tourist tax in Andorra are as follows:

• A maximum taxation limit of 7 days is established. This means that for stays of up to 7 days in the same tourist accommodation, the client will have to pay the corresponding tax for each day. From the 8th day onwards in the same accommodation, the tax is exempted.
• The tax is paid per person and per day.
• Children under 16 years of age are exempt from this tax.
• Residents of Andorra are also exempt from this tax.

The price of the fee varies according to the category of tourist accommodation and is payable per night and per person:

* espigas is the equivalent unit to hotel stars, but for rural accommodation.

In the Official Gazette of the Principality of Andorra  – BOPA No. 76, published on 22 June 2022 , you can find the details of Law 19/2022 of 9 June, which explains the tax on stays in tourist accommodation. It also explains that the funds raised by this tax will be used to finance projects or actions that pursue the following objectives:

• The promotion of tourism in the Principality of Andorra.
• The promotion of sustainable, responsible, inclusive and quality tourism.
• The protection, preservation, recovery and improvement of tourist resources.
• The promotion, creation and improvement of tourism products.
• The development of infrastructures and services related to tourism.
• Actions to deseasonalise tourism.
• The promotion of training activities aimed at people in sectors directly related to tourism.

How is this tourist tax paid in Andorra?

The tourist will pay the tax corresponding to the tourist accommodation multiplied by the number of nights he/she is staying, up to a maximum of 7 nights in the same accommodation . If you change accommodation, the previous nights are not taken into account. For example, a person staying in a 5-star hotel for 10 nights will have to pay a tourist tax of 7 x 3 = 21 euros. Another person who stays the same 10 days but in different 5-star hotels, without exceeding 7 days in any of them, will pay a total of 10 x 3 = 30 euros in tourist tax, distributed between the different accommodations in which he/she has stayed.

How is this tourist tax collected in Andorra?

In general, the holders of tourist licences are responsible for the tax, unless they act via intermediaries. In the latter case, they are the ones who are responsible for the tax. They are obliged to pay it quarterly to the Ministry of Finance.

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Andorra Gazettes Law Amending Tax on Tourist Accommodations

The Andorran Official Gazette June 22 published Law No. 19/2022, amending the tax on stays in tourist accommodations. The law includes measures: 1) exempting certain stays in accommodations from the tax; 2) requiring certain solidary managers and individuals to pay the tax; 3) determining the tax base and rates; 4) implementing invoicing, reporting, and tax payment rules; 5) establishing refund rules and penalties for noncompliance; 6) setting rules for complimentary accommodations, and camping and glamping establishments; and 7) setting registration requirements for tourist accommodations. The law enters into force June 23. [Andorra, Official Gazette, 06/22/22]

Reference: View Law No. 19/2022 ...

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Andorra introduces tourist tax

Andorra  ( Pyrenees ) has approved a bill regulating the tax on accommodation in hotel facilities . The only exceptions are the areas where camping-cars are located.

Thus, a tax of 3 euros will be applied to tourist accommodation in 5-star hotels, 2 euros – in 4-star hotels and 1.50 euros – in 2 or 3-star hotels. The tax in 1 star hotels will be 1 euro per stay.

Children under 12 are exempt from tourist tax.

See also  Andorra best ski resorts

See also  Andorra travel guide

See also  Pyrenees travel guide

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Traveling to Andorra: requirements and 9 tips for tourists

Are you going to travel to Andorra soon and you don't know very well how to manage this trip? In this article we will give 7 tips or advice you should keep in mind when visiting this country as a tourist so that the management is as easy and enjoyable as possible and you can enjoy the Principality without too many complications. These tips will be very helpful when planning your trip

Requirements to travel to Andorra

Andorra has agreements with its neighbors Spain and France because you can only enter the country precisely through them. According to these agreements, to enter Andorra a person only needs that documentation that is required to enter Spain or France . So, for example, the requirements to travel to Andorra from Spain are to bring the documentation that has had to be obtained to travel to Spain. Obviously, if you are going to be Andorran resident , more documentation is required but not to travel as a tourist. Thus, the list of requirements would be as follows:

• Spanish people or people from within the European Union: they only need the ID or valid passport .
• People from countries outside the European Union and within the Schengen Area: bring the valid passport .
• People from countries outside the Schengen area: provide the Valid passport and Schengen visa .

Regarding the requirements to travel to Andorra due to the covid, there are currently none . You can travel to Andorra from Spain and from France without any extra requirements. PCR is not needed to travel to Andorra and neither is TMA or other tests.

Travel to Andorra from Barcelona

To travel to Andorra from Barcelona, obviously, there are many options . You can go by taxi, but then prepare your wallet because it's not going to be cheap. You can also look for options in blablacar , since it is usual for people from Andorra to travel to Barcelona and vice versa and it is easy for someone to have a Blablacar service.

But without any doubt the most reasonable and most used option is the bus . In this sense there are two main lines; on the one hand Andorra By Bus , which also allows you to take buses from Toulouse and on the other Directbus , which only Barcelona offers. However, DirectBus offers a stop at Barcelona Sants, Barcelona's train station, while AndorraByBus only has stops at airports.

Finally, there are other bus options such as Alsa buses and also those of Flixbus . All trips are around €30 per person for a one-way ticket and €55 per person for a return ticket.

Travel to Andorra from Madrid

Similarly, to travel to Madrid we can do it with a taxi, although it is not recommended, and we can also search if there is any Blablacar . On the other hand, the company Alsa also offers Madrid-Andorra trips for €52 one way and €98 round trip. However, the best option without a doubt for those who do not want to waste time is to use the newly opened flight from Andorra to Madrid , since for €59 the trip is made from La Seu d'Urgell airport to Madrid and vice versa in one hour.

In any case, we tell you more about how to get to Andorra here .

Travel insurance and healthcare

You'll probably be interested take out travel insurance before coming to Andorra . As we told in our article on the functioning of Andorran healthcare , the European health card does NOT work in Andorra: it is not valid. the principality is not within the European Union and therefore this card is useless.

Therefore and as if that were not enough, when having any urgency tourist taxes apply that is, on Andorran non-residents. And it is necessary to say that ski slope insurance only covers you on the ski slope , not out of it.

Therefore, in addition to request scroll wheel ( E/AND.101 ) in the Spanish Social Security, for example) take out travel insurance it can be very interesting. So you will not have to worry about your health while you are here because you will have full medical insurance as a tourist.

About telephony and mobile internet

Do not enter the country with the foreign mobile internet activated, nor activate it at any time once inside. The strictest recommendation we can give regarding telephony when traveling to Andorra is turn off the phone at the border, before entering the country and turn it on again but without entering the PIN or activate the SIM card. Thus, the mobile will be completely blocked at the telephone level and they will not be able to charge you any absolutely crazy cost.

We make that recommendation because there are telephone companies that charge to receive the call in a foreign country , with which even if you turn off the data or do not answer the calls, they can charge a plus for receiving said call on a foreign network, and return from your trip to Andorra with a disgust.

Only if you are totally sure that this is not your case, it may be advisable not to do the restart, although it is the safest. If this is the case for you and you decide not to restart your phone, the advice is that you must remember not to take any incoming calls and turn off the data of the device before entering the country and not turn them back on that SIM card until you return to the country of origin.

But then how do I connect?

Andorra is a pioneer country in technology and internet connection . The first solution is that you wait to go to your hotel or lodging place, restaurant, etc. where you can access the internet via local WIFI and you can connect, using the local wife of that site.

The second option, but only if it is an emergency is to connect to one of multiple free wife networks that are spread through all the country. For example, the Andorra wifi offered by the Andorran select company, Andorra Telecom, is a free Wi-Fi network that connects the most important points of the country. Also, the libraries and (common) municipalities of Andorra have free Wi-Fi and even some shopping centers such as the River Shopping Center , located in Sant Julia de Lòria, or the same Ill Carlemany .

Use this second option only if it is an emergency and never enter personal or important information such as credit cards, passwords or ID. These networks are not secure.

And finally, if you want to have 4g mobile internet and not rely on WiFis to access the network, one of the tips is to buy a prepaid card for your visit , especially if you are going to travel to Andorra for several days. One option is the famous card Holly or similar with which you can get mobile connection in many countries. Another alternative is to buy a andorra Telecom prepaid internet card with which you will be able to navigate, call and send SMS, although it is better to see the communication rates of the card before carrying out any action.

Andorra and the snow

Don't leave Andorra without having enjoyed the snow , unless your trip is in summer. If you are going to travel to Andorra in non-snow seasons, you should also visit the wonderful Andorran mountainous landscape to discover the whole country. Having three natural parks, one of which is a World Heritage Site, unique lakes and peaks, not making trips to the Andorran mountains is a sin, excuse me.

Andorra in winter is splendid. Going up to a ski resort should be in your travel plans, even if its not for skiing . The Principality is one of the best sites in the Pyrenees for the experience of the mountains and the good snow. You can not only ski, but do all kinds of activities . For this we offer you to go to 3 ski resorts where you can not only ski, so you do not leave here without enjoying the snow.

Grandvalira

Grandvalira  is the largest ski resort in Andorra, and one of the largest in the world. It has 7 different sectors from which to access its tracks and peaks (Encamp, Canillo, Solder, Gray Rig, Ex Tarter, Patrol, Pas de la Casey). With more than 120 slopes and more than 200 km of skiing, this is undoubtedly the great Andorran ski resort. The Grandvalira ski pass is one of the most expensive (although not so much) but it works for all these sectors. It is the definitive option for a great weekend. 

Grandvalira is the most common stop for anyone who is going to travel to Andorra. Regarding activities without skiing, in the Grau Roig sector you can do activities such as snowmobiles (€120 for 2 seats) or make an igloo, and in the Palau de Gel de Canillo you can ice skate with a rink that is all the year open, and other activities such as karting, quads etc. This track, in addition, is free for those of the Super 3 Club.

Andorra Vallnord

Although Vallnord it has fewer sectors (Pal, Arousal, Ordino Arcades), it is more affordable than Grandvalira. The price of the ski pass for an adult is €41 and for beginner skiers there is a ski pass for €19.50 that allows you to take the chairlift and conveyor belt for beginners, with the access cable car included. The ski pass for children under 6 years old is free and from 6 to 15 years old it costs €35. 

In Pal if you do not like skiing, you can sled on a good track for 5 euros the person with a conveyor belt.

 Naturlandia

In Naturlanda – La Rabassa There is not only a great cross-country ski station and snowshoe routes, but also a park for adventure activities (snowmobiles, zip lines, etc…) with an animal park. If you don't like skiing, this beautiful place is probably the best for you if you are wondering what to see or do on your trip to Andorra. 

It is divided into two levels: at the 1600 level is the amusement and adventure park and at the 2000 level is the animal park and the Nordic ski slopes and snowshoes. Cross-country skiing or snowshoeing while watching the animals fully integrated into their habitat in a large forest, a beautiful spectacle! The price of the Nordic ski pass is €12 and that of the animal park €14 for adults.

Be careful with shopping

You can buy a lot of reduced price products , but pay special attention to the amount (in monetary value) of what you buy . Shopping in Andorra can be very affordable, not only because VAT or consumption tax there (IGI) is 4.5% or less , but for the special taxes on tobacco, gasoline, alcohol, etc. But the purchases are not unlimited. One of the tips is nothing to buy perfumes, electronics, tobacco and alcohol for the whole neighborhood.

You have to know that there are  limits on private importation  of these products. Smuggling is a very typical activity when traveling to Andorra, but it is very controlled. If you exceed any of these limits, you will have to declare them at customs and pay a fee or fine that will make your product more expensive than if it were foreign, even being more profitable if they requisition it in some cases.

First, note that  the maximum limit of the value of what you import per person over 16 must be less than €900 . And for each product there is also a different limit:

• The limit for  alcohol  below 22 degrees is  3 liters
• For beer is 16 liters
• At most you can import  300 units of cigarettes
• In sugar or candy you must carry less than 5 kilos
• Milk less than 6 liters
• Coffee you can only 1 kg
• And some more limits

In addition, you must also know that the total value of what you wear both when entering and leaving (cash and valuables) must be less than €10,000.

Travel to Andorra with children and pets

The first tip to remember is that you must have all the documentation in hand. If you come from countries with which Andorra has an agreement, such as Spain, France or Portugal with the DNI of all people you can enter the Principality . If not, you must have your passport and/or other documentation in order and in force. So if you are traveling with children on board, do not forget that they must have a valid DNI.

Best travel plans to do in Andorra with children

Well, the truth is that when traveling to Andorra you can do almost anything with children: from mountain walks, hiking in nature and routes to lakes to snow sports such as skiing, snowshoeing, or snowmobiling. You can also go to Naturlandia, the Caldea spa... almost all plans can be done with children in Andorra . Even so, we recommend a few that are key:

• The  Chaldea Lipids , in the spa of Chaldea , to spend 3 hours in the SPA with your partner alone while the children have fun in an exclusive children spa with monitors and have a great time.
• The second plan is to got ice-skate in the  ice skating rink of the Paley de Gel in Canillo . A plan that we also remember is free if you have the Super 3 Club cards.
• Go to ; the two dimensions of Naturlandia  and enjoy its adventure activities, animals and the small snowshoe circuit, charming for everyone. The Naturlandia Animal Park is also a very interesting place to visit, since animals from the area such as deer, wolves, bears or boreal lynxes coexist in semi-freedom. In addition, they have a spectacular Tobotronc through which launching will be the illusion of children in Andorra.
• Walking among animals and dinosaurs through the  Jerri contemporary gardens located in Sant Julia de Lòria. In these private gardens but whose visit is free of charge, you can find a collection of contemporary art sculptures taken care of by their owner, as well as dinosaurs and many other animals.
• Climb the Naturlandia Airtrekk, which is the largest adventure activity facility in Europe. It is a wooden structure full of nets, platforms, ropes, zip lines, walkways, etc.
• You can also do easy hiking trails such as  the Ruth Del ferry , on foot or with snowshoes on a small route where your children will discover everything about the exploitation of the old iron mines or the green ring path .
• Finally, the museums could not be missing. The Miniature Museum, the Carmen Thyssen Museum, the National Automobile Museum, or the ARTALROC exhibition hall

Travel to Andorra with dogs

If you bring a dog when traveling to Andorra, you must complete certain documentation before visiting the country of the Pyrenees. The  requirements to enter animals in Andorra  is that they have to be over 3 months old, they have to have the animal passport that your veterinarian will make for you, the rabies vaccine up to date and next to it there must be a serology that is negative for animal rabies made by your veterinary. As for activities, if your dog lives in the mountains, obviously almost any plan will delight him.

The chains or contact tires

If you visit the country in winter, make sure that you carry chains or winter contact wheels in your vehicle .

No excuses that if it is a good day, if it is only a moment or that you will not climb much, The Pyrenees climate is very treacherous and can change in a short time and start to snow. On the other hand, on a cold day, nobody assures you of not finding an ice or snow plate on the road. Therefore, never forget the  chains ,  and being able to be 4 , one for each wheel if you go to Andorra by motor home or 2 minimum if you go by car.

In addition, in 2015 a modification of the Andorra Traffic Code entered into force, in which it  forces  to bring adequate equipment (chains or tires adapted) to all vehicles that circulate on the roads and streets of the small country of the Pyrenees. The obligation begins each season on  November 1st , and finish the  May 15th of the following year

Normally the  andorra police  fine only when in case of snowfall or ice on the road (although you can do it at any time within that mandatory period), a vehicle gets stuck hindering the movement.

The amount of the penalty goes from  180 euros  at 500 euros in the case of vehicles of more than 3.5 tons. And to avoid it, the vehicle must be equipped with winter tires or with metal or cloth chains, which are suitable for the dimensions of the wheels. At a minimum they must be carried on the tractor wheels. The measure affects both Andorran residents vehicles and  no residents ones .

One last point

Finally we remember and recommend contact us if they want to settle in Andorra, move to this country, open your company in Andorra o reside and live in Andorra . You can make it pressing here . They can also see the all general advantages offered by the Principality of the Pyrenees .

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Andorra Insiders is an information platform about Andorra managed by ABAST, an Andorran professional consultancy firm for legal, tax and accounting services specialized in establishing people and businesses in the Principality of Andorra. More information here.

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Andorra tourism guides: plan your holidays

Download the Andorra Tourism guides and find out what the country offers in nature, culture, cuisine, wellness and much more. A thousand and one ways to enjoy your mountain holidays.

The map of Andorra shows all the services, tourist attractions, monuments, peaks and lakes, nature parks, roads of Andorra, and more. You'll find everything you need to travel around our country at your own pace with the map of Andorra.

Whenever you visit Andorra, this guide will tell you at a glance all you want to know about the activities on offer. Enjoy our fine cuisine, discover the country's natural wonders and our GR hiking path network, get to know our extensive culture and relax in Andorra's grand well-being centres. A wide range of activities that will ensure your holidays in Andorra are unforgettable.

Feel right at home during your stay in Andorra The Andorra accommodation guide includes over 200 hotels as your base to discovering the country in all its facets. Relax and rest in the hotel of your choice after a day's tourism in Andorra.

Enjoy local Andorran cuisine, which over time has assimilated both French and Catalan culinary influences. Andorran cuisine has always been closely associated with our local products.

Discover all the adventure and outdoor activities on offer in Andorra with this outdoor guide. All the information you need to enjoy your favourite outdoor sports. See the map of Andorra for mountain routes and hiking paths through our magnificent countryside.

If you enjoy hiking, then be sure to check out the hiking paths in the Principality. There are over 66 fact sheets with all the information you need to enjoy the mountains to the full. You'll find isolated routes that can't be reached by the roads of Andorra.

For many years, Andorra has been a point of reference in prestigious professional cycling events such as the Tour de France or Spain's Vuelta a España, thanks to the demanding nature of its mountain roads. Discover cycle touring in Andorra.

Andorra is a unique destination for outdoor sports, with cycling being one of the most attractive and special ways to discover the natural environment and the beauty of the Principality's mountains. Enjoy our mountain bike and e-bike routes.

With the mountain shelter and GR map you can plan your hiking route through Andorra's most stunning landscapes. Discover the beauty of our lakes and Andorra's unique flora and fauna. Over 26 mountain shelters and long-distance GR routes await you in Andorra.

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The Andorra Tax System

Hidden in the Pyrenees mountains is the low-tax Principality of Andorra.

Andorra offers endless opportunities for both residents and tourists alike. However many of these people would have never found Andorra on the map without its low, but fair tax system.

In this article we’ll review Andorra’s tax rates, the different types of tax and the laws associated with the Andorran tax system for both individuals and companies.

Table of Contents

Resident Personal Income Tax

Andorra’s income tax for resident individuals is known as IRPF , or “Impost sobre la renda de les persones físiques”.

What Is the Personal Income Tax Rate in Andorra?

The nominal  personal income tax rate in Andorra is 10% . That is, the maximum an individual will pay is 10%.

Similar to many countries however, Andorra uses a bracket approach to its personal income tax system.

Income Tax Brackets for Individuals

• €0 – €24,000: 0%
• €24,001 – €40,000: 5%
• €40,001+: 10%

Income Tax Brackets for Married Couples

• €0 – €40,000: 0%

Who Is Liable for IRPF?

IRPF applies to any individuals with Andorran tax residency, that is;

• someone who resides in Andorra for more than 183 days in a year, or
• someone who keeps the majority of their business, economic and life activities in Andorra, commonly referred to as a “permanent place of abode” by some countries.

What Type of Income Is Taxable?

Andorran income tax applies to all forms of income, capital gains and losses. Unlike many countries with a territorial taxation system , Andorra taxes its residents on their worldwide income.

Taxable income includes:

• salary from an overseas employer,
• dividends or coupons from investments held abroad,
• pension, superannuation, savings or insurance plans from abroad.

Are Any Types of Income Exempt?

Though limited, some forms of income are exempt from tax. In most of these cases, the investments need to be made within Andorra.

Exempt types of income include:

• income from Andorran government bonds,
• dividends and other income from holdings in entities registered in Andorra,
• dividends and other income from holdings in entities resident in Andorra,
• capital gains and losses,
• income from funds deposited with an Andorran bank, up to €3,000,
• public grants and scholarships,
• literary, artistic or scientific prizes.

For more information, see Article 5 – “Exempt Income” of  Law 5/2014 .

Non-Resident Income Tax

Tax on income for non-resident individuals and entities is known as IRNR , or “Impost sobre la renda dels no-residents fiscals”.

IRNR is payable when an non-resident individual or entity earns income from economic activities in Andorra.

IRNR, the Andorran income tax on non-resident individuals and entities is 10% .

Corporate Tax in Andorra

Any company incorporated in Andorra, or resident in Andorra (due to a registered office or having effective management in the country) is considered a tax resident in Andorra.

Entities resident in Andorra are taxed under IS , or “Impost de societats”.

The nominal corporate tax rate on profits in Andorra is 10% . Though a special effective tax rate of 2% exists for certain types of companies such as holding companies investing in foreign companies (such as those owning property and intellectual property), this system is expected to see significant changes.

Corporate Withholding Taxes

The corporate withholding tax rate in Andorra , also known as a dividend withholding tax is 0% .

Royalties are taxed at a rate of 5% .

VAT; Indirect Tax

Andorra is known for its tax free shopping, but in reality most sales made within the country’s borders attract a 4.5% “ I.G.I. “, or value-added tax.

This rate can be reduced to 0%, mostly for non-profits, education and medical care. 1% on foodstuffs (outside of alcohol), books, newspapers and magazines, and 2.5% on tourism operators and art.

An increased rate of 9.5% is applied to banking and financial services.

Capital Gains Tax

The nominal rate of capital gains tax in Andorra is 10% . There are however, some exceptions:

• This is especially interesting for traders of publicly listed companies (please note: options, commodities and other investments are not covered by this exemption).
• Any asset held for more than 10 years is exempt from capital gains tax.

Capital gains tax in Andorra applies to investments worldwide. Where tax at or above the Andorran rate of 10% has already been paid on this investment abroad, it is not chargeable locally under double-taxation law.

Please note capital gains tax on real estate in Andorra is different again, which we cover below.

Tax on Real Estate

Real estate in Andorra  is not subject to inheritance or transfer taxes, however owners are liable for both purchase taxes and capital gains tax on sales before 13 years of ownership.

Tax on the Purchase of Andorran Property

When buying property in Andorra , you should expect to pay two different types of tax:

• Fixed tax: 1.5% of the sale price paid to the comu (local government)
• Impost de Transmissions Patrimonials: 2.5% of the sale price paid to the Andorran Government

Tax on the Sale of Andorran Property (Capital Gains Tax)

Selling taxes are much more variable.

Andorran property has a capital gains tax between 0% and 15% , how much you pay depends on how long the property was held:

• 1 year: 15%
• 2 years: 13%
• 3 years: 10%
• 4 years: 9%
• 5 years: 8%
• 6 years: 7%
• 7 years: 6%
• 8 years: 5%
• 9 years: 4%
• 10 years: 3%
• 11 years: 2%
• 12 years: 1%
• 13 years or more: 0%

Double Taxation Agreements

Since the radical change in Andorra’s tax laws to meet international obligations and avoid being blacklisted as a tax haven , the government has been negotiating on double taxation agreements with countries around the world.

To date, the following countries have double taxation agreements with Andorra currently or will do shortly:

• France: Effective from July 1, 2015.
• Liechtenstein: Effective from November 21, 2016.
• Luxembourg: Effective from March 7, 2016.
• Malta: Signed September 20, 2016.
• Portugal: Effective from April 23, 2017.
• Spain: Effective August 1, 2017.
• United Arab Emirates: Effective August 1, 2017.

Andorra has been in negotiations with Belgium, Czech Republic and The Netherlands, and has expressed intentions to negotiate with Estonia, Latvia and Lithuania.

Andorra’s Tax System

While Andorra’s tax laws continue to evolve, the system remains straightforward enough to negotiate without too much headache.

Whether your plan is to incorporate or live in Andorra, you will be treated to some of the lowest tax rates in the developed, compliant world.

For more tax information in Andorra, please review the other articles available on this topic, in our Andorra Tax section.

• Category: Tax

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Money in Andorra: Currencies, roaming, taxes and customs

Going on a ski holiday in Andorra is an exciting experience, not just because of the beautiful Pyrenean ski slopes but also because this is a very unique country. However, being a unique country means that a lot of everyday services and rules might be different from what you’re used to.

So, here we have a guide to how money works in Andorra and the best money tips for Andorra tax, roaming, customs and currency queries .

Currency in Andorra: What is the official type of money in Andorra?

Even though Andorra is not a member of the European Union, the currency in Andorra is the Euro . Previously, the currency in Andorra was a mix of the French franc and the Spanish peseta. But, Andorra has long used the Euro and the currency in Andorra has been officially recognised as the Euro since 2011 , after the principality established a monetary agreement with the European Union and signed the Euro into Andorra laws.

Andorra tax haven: Is Andorra really a tax haven? 

The answer to the question of ‘Is Andorra expensive?’ is no, because the prices in Andorra are relatively low compared to many other European countries , and this is largely down to the Andorra laws on tax. There are several Andorra tax advantages, although it is important to point out that both the European Union and the Organization for Economic Cooperation and Development reject the Andorra tax haven label . In their view, Andorra is not a tax haven despite there being a few Andorra tax advantages and a low Andorra tax rate.

Andorra tax rate: What is the current Andorra income tax rate?

Looking at the 2023 Andorra tax rate for income tax , it is 0% for annual personal income between €0 and €24,000, it is 5% for annual personal income between €24,000 and €40,000 and then any amount over €40,000 brings an obligation to pay 10%. That’s according to ABAST, who point out that: “With a maximum rate of 10%, the Andorran personal income tax is one of the lowest in Europe.”

As for the Andorra tax rate for the country’s equivalent to VAT, this general tax rate is just 4.5% , while there are also some exceptions that are even lower.

Andorra data roaming and mobile charges abroad: How much are the Andorra roaming charges? 

If you’re looking to make calls or access the internet on your phone while on your skiing holiday in the Pyrenees , do be aware of the Andorra roaming charges. Even though these charges disappeared across most of Europe a few years ago, keep in mind that in Andorra data roaming still exists and can be costly if you’re not careful .

But, there are solutions to the data roaming Andorra issue . As the Andorra tourism board explains: “You can activate a pre-paid eSIM, with domestic Andorra Telecom charges, during your stay in Andorra. The eSIM is available for all visitors to Andorra who had a mobile phone compatible with this technology - which has been around for about three years now - which will allow you to download an eSIM, equivalent to the physical SIM card in your phone but in a digital format. This service allows you to keep communicating in Andorra while saving on the fees that come with roaming.”

There is also Andorra public Wi-Fi in the main shopping districts of Andorra la Vella and Escaldes-Engordany, if you can wait until you’re in those areas. Your ski resort should also have free Wi-Fi available.

Andorra border control: How do Andorra customs work?

The final Andorra money tip to keep in mind concerns the Andorra customs rules. Since the borders of Andorra are with the European Union and since the microstate is not a part of the European Union itself, there are sometimes custom checks when driving in Andorra or out Andorra . While many items are not subject to Andorra tax duties, you should keep in mind that there are limits on the amount of cigarettes, perfumes or alcohol that you can carry . These Andorra laws regularly change, so it’s worth checking the latest versions before travelling.

Taxes in Andorra

Home · · taxes in andorra.

Everyone talks about taxes in Andorra, but what do you really know about the Andorran tax system?

Taxes in Andorra compared to its neighbors

Andorra enjoys a very competitive tax system compared to its neighbors, which is one of the country's most prominent attractions. To benefit from this tax system, it is necessary to be fiscally resident in Andorra.

Taxes in Andorra, like in most countries, are divided into two main groups: Direct taxes and indirect taxes.

Therefore, in the following table, we show a comparison of the taxation that activities carried out by an entity would be subject to, both from a direct and indirect tax perspective.

Information about Taxes in Andorra

The Andorran tax system is one of the most advantageous tax systems in the world, with very few costly and complex administrative procedures, and internationally recognized legal security. This is supported by having signed more than 10 agreements on non-double taxation with the main countries in our geographical area.

The advantages of these agreements are to avoid that the incomes earned by companies, entrepreneurs, or residents in Andorra are taxed twice, both in the country where they are earned and in the country where one is a resident. Currently, Andorra has treaties to avoid this double taxation with Spain, France, Portugal, Luxembourg, Liechtenstein, the United Arab Emirates, Malta, Cyprus, San Marino, and Hungary.

These international agreements to avoid double taxation establish mechanisms to prevent the same income earned by a taxpayer from being taxed in two or more countries for the same taxable event or identical tax periods.

Direct Taxes

Currently, the general tax rate in Andorra is 10%, both for companies, non-residents, and individuals. In the corporate tax, this general tax rate of 10% can include a series of deductions to avoid international or national double taxation, deductions for job creation, or for investments or R&D. There is also a tax system that includes certain deductions or bonuses for entrepreneurs starting their activity.

Additionally, similar to many other countries in our environment, in the personal income tax (IRPF), the tax rate is progressive, with an exemption in the tax for incomes below 24,000 euros per year, or a deduction in the form of a 5% bonus for incomes obtained between the range of 24,000 euros per year to 40,000 euros per year.

These bonuses, deductions, and exemptions in Andorran taxes aim to attract talent from other parts of the world to make Andorra an innovative and entrepreneurial country that attracts foreign investment

Indirect Taxes:

Indirect taxes affect all countries, but their tax rates vary depending on each country. In this sense, Spain has a general rate in its indirect taxes (VAT) of 21%, France of 20%, Luxembourg of 17%, Portugal of 23%, or Germany of 19%, among others (see attached table).

Andorra offers a general rate of 4.5%, lower than many of the tax rates offered by countries in our European environment; mainly due to its strong commercial and historical tradition based on trade and to be able to offer a complementary offer to its extensive tourist offer.

The liquidation and operation of the tax is similar to that used in the European Union, following its same European directives; internationally approved and with a very similar but simpler operation than the countries in our environment. For example, the system of indirect taxes in Andorra does not use the "famous pro-rata rule" of some European countries, making its application and development much easier.

As the main conclusion and differential aspect of the Andorran tax system is that it is a system recognized internationally, based on regulations similar to those of countries in our environment, but with a much simpler implementation and application, due to the characteristics of Andorra as a European microstate, which makes us a country with fewer bureaucratic procedures.

Indirect Taxes in Andorra

Direct Taxes in Andorra

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Tag: Andorra tourist tax

Andorra tourist tax.

If you’re coming to Andorra this winter you need to be aware of the new Andorra tourist tax, which started to apply to most tourist accommodation from July 2022. The tourist tax is payable by everyone aged 16 years and older, and is charged per person per night up to a maximum of seven nights.

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Tax System in Andorra

Andorra is a gorgeous principality in the Pyrenees mountain range, well known for its favorable taxation policies. The micronation didn’t have income taxes until the EU pressured it to implement basic income tax in 2015 with a maximum rate of 10%.

There are many advantages to becoming a tax resident, which is why you’ll see a steady increase in the expat community residing here.

In this guide, we’ll explore how Andorra’s taxation system works and learn more about the different kinds of taxes.

Andorran Taxes in a Nutshell

Even though Andorra is no longer recognised as a tax haven, its taxation policies are still among the most favorable you’ll find anywhere in Europe. The rules differ slightly for active and passive residents.

Passive residents can be exempt from the personal income tax (IRPF, with a maximum 10%) if they reside here for less than 183 days per year. They are also not required to make any passive declarations or declare their movements.

In practical terms, the 90-day requirement for passive residency and the 183-day requirement for active residency is a grey area.

Many of our clients voluntarily report themselves as fiscal residents and declare the tax with the authorities. Due to exemptions, their tax return can be zero. It’s possible to be a fiscal resident in the principality by residing for less than 183 days a year. This way your income is not subject to taxation.

The time spent here is not monitored and you don’t have to be physically present in the country for more than 183 days if you wish to declare taxes in Andorra and only pay a fixed rate of 10% for all income above €40,000/year.

Types of Taxes Levied in Andorra

The Andorran tax structure is designed with the intention of boosting economic activity, welcoming foreign investment, providing a solid base for expats, and creating a favourable environment for entrepreneurs. Here’s what the rates look like:

• Maximum 10% income tax (0% for passive foreign residents).
• Corporate tax rate of 10% (0-2% on foreign-sourced income).
• Lowest VAT In Europe at 4.5% (many items tax-free).
• Low property taxes (€100/year for a large house).
• Tax-free dividends (on all Andorran CIF funds for retirees).
• Non-taxable interest (on bank savings to €3,000 per year).

The IRPF, or Impost Sobre la Renda de les Persones Físiques , is a personal income tax that was introduced in 2015 after pressure from the French and Spanish governments — Andorra didn’t have an income tax prior to 2015.

Income tax varies based on the marital status of the tax resident. The government provides relief for couples with children and mortgages.

Value-Added Tax

VAT (Value-Added Tax) is the lowest in Europe. The most popular shopping items such as alcohol, cigarettes, and perfumes are duty-free and millions of shoppers from nearby countries shop in the country for cheaper prices.

Consumer goods are 20-40% cheaper than in France. The general VAT for other purchases is capped at 4.5% except for banking fees. Similar to other European countries, the VAT is determined by the product being purchased:

• 0% VAT on items such as cigarettes, alcohol, and perfumes. VAT exemptions also apply for medical services, housing rentals, and gold.
• 1% VAT for books, magazines, water, and meat products.
• 2.5% VAT for transport tickets, library membership, museum tickets, access to historical places, theatre tickets, art sales, theatre tickets, and similar.
• 9.5% VAT for banking and financial services.

For comparison, VAT is 20% in France, 20% in the UK, 21% in Spain, and 23% in Ireland. As a resident here, you will enjoy some of the cheapest consumer goods in Western Europe due to low VAT.

Corporate Tax

The principality has the lowest corporate taxes in Western Europe, with many tax exemptions. For comparison, Ireland, the biggest corporate tax haven in Europe has a tax rate of 12.5%. Here, the corporate tax is only 10%.

You don’t have to physically reside in the country to incorporate for tax purposes. It is possible to incorporate in Andorra for as little as €3,000 (not including agency fees).

The Andorran government gives tax advantages for the first 3 years:

• 50% reduction in the first year. This means the effective tax rate is only 5% for the first 12 months. If the company produces an income of €1,000,000, the corporate tax rate will only be €50,000.

Residents also have corporate tax exemptions in the first 3 years of operation. All new entrepreneurs and businesses who incorporate for the first time can enjoy the following privileges:

• 5% tax rate for income between €0-50,000 in the first 3 years.

We offer a company formation service and we can help you set up your corporation, including handling all paperwork in Catalan.

Real Estate Tax

Property tax is symbolic and tends to cost €100/year for a large 150m 2 + home. On average, you’ll be paying €0.75 per square meter in property taxes a year. The tax is determined based on the parish of residence.

The property tax only applies to property owners between the ages of 18 and 65. Property owners over the age of 65 do not have to pay property tax. There are transfer taxes for sold properties between 1.5-2.5% that are paid by the seller.

Note: Each parish imposes annual taxes for infrastructure maintenance that can amount to between €500 and €1,000 per year. This is the only real tax burden on property owners in the principality.

Tax on Rental Income

Rental income in Andorra is taxed depending on the property owner’s resident status. Local residents enjoy lower taxes on rental income while foreign residents still get relatively low taxes.

If you rent out a property on a long-term basis or a short-term rental such as Airbnb, you will pay between 0.4-4% as a local resident. As a foreign investor deriving income in the principality, the tax rate is fixed at 7.5% of the gross rental income.

Capitals Gains Tax (For Sales)

Capital gains taxes are paid by property owners who sell their Andorran property for a profit, however this rate changes depending on length of ownership.

The rate is the highest, at 15%, if the property is sold within 12 months of ownership. This decreases to 13% in the second year, 10% in the third year, and 1% each year thereafter. The capital gains tax is 0% if you’ve held the property for more than 12 years.

Capital gains taxes do not apply if the property was used as the main residence and the property owner purchases another property with the funds obtained from the sale within 6 months.

Vehicle Tax

Andorra makes it easy to import a car from the European Union and abroad. The import tax rate is only 4.5% (VAT) on the market value of the car. If a car is worth €10,000, the import tax will only be €450. The registration cost for a car is €200 as a one-time fee.

The license plate cost is €60 and is issued by the Automobile Club of Andorra. Vehicle registration is only possible for residents who possess a residencia (residence permit) in the principality and can provide proof of address.

The following vehicle importation rules apply:

• The vehicle has to be Class 5 or above energy-efficient, according to the EU emission standards.
• Older vehicles such as high-value classic cars can be imported and are exempt from the class-5 rating requirement.
• Important for UK residents: Vehicles with a right steering wheel are not permitted.
• Automotive insurance is mandatory for all vehicle registrations in the principality.
• Cars manufactured outside the European Union will be subject to a 10% income tax.

Dividends Tax

Dividends tax in Andorra only applies to foreign dividends. If the dividends are derived from Andorran entities and companies such as Andorran CIFs, they are subject to 0% personal income tax. This means that retirees who invested their money in Andorran CIFs can enjoy tax-free income for the rest of their lives.

If the dividends are derived from companies that are not resident in Andorra, they may be subject to the personal income tax at a maximum tax rate of 10%. However, these dividends can also be exempted under the double taxation rule. If the dividends have been taxed at 10% or more in it’s country of domicile, they are not likely to attract tax in Andorra.

A Fair System

So there you have it. While Andorra is no longer a country with zero tax, it’s what many would consider incredibly fair.

Similar to the tax benefits of Singapore and similar “offshore” countries like Hong Kong and the UAE, there are many opportunities to lower the amount you pay to the government each year, while staying completely compliant. That’s thanks to Andorra being compliant with OECD and other organisations.

Want to move to Andorra and become a tax resident? We can fast-track you to residency and advise you on tax-residency in the Principality of Andorra.

Main Benefits of the Tax System in Andorra

• Andorra has historically been known for its low tax policies.
• While it is not technically a tax-free country, the few rates that do apply are some of the lowest in Europe.
• There is a tiered system for the newly introduced personal income tax.
• The VAT system was introduced in 2013 and replaced the old Sales Tax regime.

Personal Finances, Investing and Macroeconomics

Taxes in Andorra [2023] – A Tax Haven in Europe

Last updated on 3 de April de 2023

Andorra is one of the most fiscally attractive countries in Europe. It also has plenty to offer. In this post, we do an in-depth analyses of taxes in Andorra.

Andorra’s economy

• Social security

Personal Income Tax

Capital income taxes, taxes on the purchase of a home, corporation tax.

Andorra is a very small country, with a population of less than 80,000 inhabitants. Its geographical location, between Spain and France in the Pyrenees, ski slopes and attractive taxes, make Andorra a unique place in the world.

The financial and tourism sectors are the most important for the Andorran economy. Financial services, skiing, and shopping lock in over 10 million visitors each and every year.

Because Andorra overhauled its tax system a few years ago, it is no longer officially considered a tax haven by the OECD. However, that designation tends to be subjective. And, as we will see below, there is no doubt that Andorra is, compared to most other countries in Europe, a tax paradise.

Taxes on earned income

Earned income in Andorra is subject to Social Security payments and personal income tax. This is what most workers in Andorra pay:

Social Security

Like most Western countries, Andorra has a social security system, managed by the Andorran Social Security Fund, known as CASS .

The CASS is responsible for a number of social benefits. These include retirement pensions, health insurance for residents of the country, as well as benefits associated with sick leave and unemployment.

Social Security contributions to the CASS are made by both the employer and the employee. And the self-employed contribute to it as well.

Companies that employ workers in Andorra must pay 15.5% of their gross salary to the social security. Of this percentage, 8.5% goes to the pension system, while the other 7% is for the rest of benefits.

As for employees, they must pay 6.5% of their gross salary to the CASS. 3.5% will go to the pension system, and 3% to other benefits.

Finally, let us look at what the self-employed pay to the social security in Andorra. In this category we would find the famous Youtubers who have decided to leave their country of origin to reduce their tax bill.

Youtubers, as well as other self-employed people, must pay 22% of the average monthly salary in Andorra to the CASS. The average monthly salary is always that of the previous year, which is around €2,100. Thus, the monthly contributions of the self-employed will be about €460.

In certain circumstances, it is possible for the self-employed to pay a lower social security contribution. This is the case only if they have recently started their economic activity or have incomes below the average salary in the country.

Employees and self-employed people in Andorra also pay personal income taxes. The personal income tax in Andorra is known as IRPF and has three applicable rates, which depend on the individual’s income level:

• 0 to €24,000: 0%
• €24,000 to €40,000: 5%
• More than €40,000: 10%

As you can see, both low and high incomes pay very little tax. This is why Andorra is such an attractive place when it comes to taxes. This is especially true for those who earn a lot of money and can choose where they want to live.

In addition, the Andorran income tax has several deductions that allow to reduce the tax bill even further. Thus, those who have children, are paying a mortgage or contributing to a private pension plan, will have to pay less taxes.

In fact, income taxes in Andorra are so low that, apparently, it is very common for workers to negotiate with their company what their net salary will be. The company will take care of any income taxes.

Capital income is also treated very favourably in Andorra. The first €3,000 per year that residents in Andorra receive are exempt from taxes. Everything that exceeds that figure will be taxed at a rate of 10%.

The tax rate applicable to capital income is not only low, but also easy to calculate. This contrasts with other countries, where taxes are much higher and their calculation is more cumbersome.

VAT in Andorra is known as IGI, which stands for General Indirect Tax, and taxes the consumption of goods and services in the country.

Although the general VAT rate in Andorra is 4.5%, reduced rates exist for certain categories. The following table lists all VAT rates, and the main products and services to which they are applied:

As you can see, the IGI rates are very attractive, especially when compared to those of other countries. In fact, Andorra is one of the European countries with the lowest VAT.

The purchase of a home in Andorra is also accompanied by the payment of taxes. In this case we would have to pay 4% of the value of the purchase, regardless of the amount.

Although this tax is not low, it is lower than what is paid in the two neighboring countries, Spain and France.

Corporation Tax in Andorra is 10%, applicable to both small and large companies. Thus, it is one of the most attractive rates in Europe.

To put it in perspective, the corporate tax in Spain is 25%, in France between 28-31%, depending on the size of the company, in Germany nearly 30% and, in Ireland, considered by many as a tax haven for companies, 12.5%.

Additionally, dividends distributed by companies domiciled in Andorra are not subject to any withholding taxes. This prevents double taxation.

Dividends are a good means for the self-employed to get paid, as there is no difference between receiving a salary, or getting paid through dividends. In both cases a tax rate of 10% will apply.

Andorra is a country with low taxes for everyone. It is for this reason that it is such an attractive place for those who can freely decide where they want to live.

Something remarkable, in addition to the low tax rates, is that the Andorran tax code is extremely simple. There are very few tax figures, making it possible for everyone to know how much they are paying.

This is in contrast with the tax codes of most European countries which are both expensive and difficult to follow.

If you would like to learn how much taxes are paid in other countries, check out this section: Taxes

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• 2.1 History
• 2.2 Economy
• 2.3 Electricity
• 2.4 Visitor information
• 3.1 By plane
• 3.2 By helicopter
• 3.3 By train
• 3.4.1 Car rental
• 3.5.1 From France
• 3.5.2 From Spain
• 3.6.1 From Spain
• 3.6.2 From France
• 4.3 By taxi
• 7.1 Ski resorts
• 7.2 Hiking and trekking
• 8.2 Shopping
• 13 Stay safe
• 14 Stay healthy
• 16.1 Cellular service
• 16.2 Internet
• 16.3 Postal services

Andorra is a small, mountainous country in Western Europe , up in the Pyrenees between France and Spain . Full of beautiful mountains and charming old villages, the country thrives on tourism, mainly visitors from nearby countries who come for shopping, skiing, hiking, and banking.

Cities [ edit ]

• 42.5 1.5 1 Andorra la Vella — capital of Andorra
• 42.47 1.49 3 Sant Julia de Loria — south of Santa Coloma towards the border with Spain
• 42.508889 1.540833 4 Escaldes-Engordany — this is really an eastern suburb parish of Andorra La Vella
• 42.536111 1.582778 5 Encamp — parish to the NE of Andorra La Vella between Engordany and Canillo on the road to France
• 42.544167 1.516389 6 La Massana — small town and parish about 5 miles north of Andorra La Vella . You can access Arinsal - Pal ski area from it directly
• 42.555 1.533056 7 Ordino — northernmost and least populated parish but almost the largest by area
• 42.566378 1.60094 8 Canillo — northeasternmost parish on the main road and border to France
• 42.566667 1.483333 9 Arinsal — small village and ski resort in the north west
• 42.55 1.483333 10 Pal
• 42.543736 1.733736 11 Pas de la Casa — a town bordering with France
• 42.576944 1.667222 12 Soldeu

Understand [ edit ]

History [ edit ].

For 715 years, from 1278 to 1994, Andorrans lived under a unique co-principality ruled by the French head of state and the Spanish bishop of Urgell. In 1993, this feudal system was modified with the titular heads of state retained, but the Andorra government transformed into a parliamentary democracy. The French claim goes back to the Counts of Foix, whose claim passed to the Kings of Navarre, who came to be French kings in the 16th century. France abandoned the claim during the First Republic, but has continually exercised the position since the days of Napoleon, even under Republican governments. Long isolated and impoverished, mountainous Andorra achieved considerable prosperity since World War II through its tourist industry. Many migrant workers (legal and illegal) are attracted to the thriving economy with its lack of income taxes.

Economy [ edit ]

Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for roughly 80% of GDP. An estimated 9 million tourists visit annually, attracted by Andorra's duty-free status and by its summer and winter resorts. Andorra's comparative advantage has eroded as the economies of neighbouring France and Spain have been opened up, providing broader availability of goods and lower tariffs. The banking sector, with its "tax haven" status, also contributes substantially to the economy. Agricultural production is limited—only 2% of the land is arable—and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing output consists mainly of cigarettes, cigars, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products.

Electricity [ edit ]

Electricity is supplied at 220 to 230 V 50 Hz. Outlets are the European standard CEE-7/7 "Schukostecker" or "Schuko" or the compatible, CEE-7/16 "Europlug" types.

Visitor information [ edit ]

• visitandorra.com (official tourism website)

Get in [ edit ]

Due mainly to the mountainous nature of Andorra, there is only one road entering Andorra from France , and only one widely-used road entering Andorra from Spain. Almost all entry into the country happens at one of these two points.

Andorra doesn't require a visa from any visitors, but because the country can only be entered from Spain or France, you'll need to enter the Schengen Area first in order to get to Andorra. See the Schengen Area entry requirements.

As Andorra is not a member of the EU, everyone entering Andorra is required to go through customs controls. See the Visit Andorra web-site for more information on your duty-free allowances.

Visitors from outside the EU should note that Andorra is not a Schengen member, and exiting France or Spain into Andorra would theoretically terminate a single-entry visa. In practice, though, immigration does not enforce this.

By plane [ edit ]

The nearest larger airports are:

Perpignan ( PGF  IATA ) (France) 128 km (80 mi) to the east, no coach connections but you can take a Yellow train to La tour de Carol and further to l'Hospitalet.

Toulouse –Blagnac ( TLS  IATA ) (France) 196 km (122 mi) to the north. You can pre book a coach or a taxi from Toulouse Airport to all the resorts in Andorra with Sea-Lifts .

Barcelona El Prat ( BCN  IATA ) (Spain) 202 km (126 mi) to the south.

By helicopter [ edit ]

To Andorra la Vella, La Massana or Arinsal heliports, the journey from airports in Toulouse or Barcelona for a maximum of 5 passengers, takes less than an hour and costs €2500 .

See the Heliand website for more information (click "serveis particulars" when it appears).

By train [ edit ]

Andorra is the only sovereign non-island state in Europe to have never had a railway.

While there are no train lines or stations in Andorra, stations near the border can be accessed easily from Barcelona , Perpignan and Toulouse . There's also a direct sleeper from Paris .

As of 2017, the French Intercités de Nuit still serves both stations, but the network has been curtailed severely and this service could be axed in the foreseeable future, too. As with most long distance trains, early booking can net you very good deals indeed.

The French railway company, SNCF, used to operate one bus per day (TER Midi-Pyrénée, dep 09:35, 26 min, €3.20 , SNCF discounts apply) from the train station of L'Hospitalet-près-l'Andorre (also called Andorre-L'Hospitalet-SNCF or L'Hospitalet) to the first town after the Andorran border, the supposed shoppers' paradise of Pas de la Casa , from where it's possible to take frequent buses to Andorra-la-Vella ( €5.85 ) — every 30 min with Cooperativa Interurbana ( ☏ +376 806 556 , line 4) or cia Hispano-Andorrana [dead link] ( ☏ +376 807 000 ). Check!

Hispano-Andorrana [dead link] bus company runs services twice a day from the L'Hospitalet train station directly to Andorra-la-Vella, also calling at some other stops, for about €8 .

From France, getting to Andorra by train and onward bus costs around the same as the direct bus. It is very cost-effective for holders of SNCF discount cards such as Carte 12-25 or those coming with the sleeper train from Paris. Anyone under 26 years-old traveling at off-peak hours with SNCF is entitled a 25% discount (called "Découvert 12-25").

From Barcelona, the train-bus combination is much cheaper than the direct bus; however, it requires two changes: one in Latour de Carol and one in L'Hospitalet.

Caution : L'Hospitalet train station is in a deserted area, is often unmanned, and its rooms have restricted open hours, so in winter it's important to match connections well. If you need assistance, you may want to call the Toulouse train station at ☏ +33 8 91 67 76 77 .

By car [ edit ]

Roads in Andorra are generally of a good quality. Entering from the Spanish side is a relatively straightforward drive; however entering from France is a more stressful affair involving many hairpin bends. Border control officers at both sides are generally fine. Entering Andorra, you generally do not need to even stop, but you must slow down and be prepared to stop if requested. When leaving Andorra, you must stop and be prepared for delays during busy times. Fuel prices are usually lower in Andorra than France and Spain, so it's a good idea to fill up your tank before leaving the country.

Also beware of black ice and snow drifts as the temperature in Andorra can be much colder than at sea level. Be sure your car is in good condition.

The approach from the French side passes through the 2.9-km-long Tunel d'Envalira which requires a credit or debit card for payment of the fee. The amounts are: Dec–Mar (Apr–Nov)

• Cars €5.60 ( €4.80 )
• Others €16.70 ( €10.70 )

Occasionally the road through to France can be closed in winter due to heavy snowfall and avalanche risk. Weather and road conditions may be very different on the northern slope of the Pas de la Casa than to the south.

From November to April, it is necessary to have winter tyres or snow chains at hand in the car. In snowy road conditions, cars without winter tyres or snow chains fitted are not allowed to drive. This is often enforced by police checkpoints on access roads to the ski resorts and on mountain passes such as the CS-311 and the road above Pas de la Casa.

Car rental [ edit ]

The usual car hire companies operate from locations such as 'downtown'; the desks are sometimes quiet and unmanned so it may be a good idea to book in advance on-line, your rates should still be good value.

Taxi [ edit ]

Taxi Josep provides a Mercedes Benz car and speaks many languages ☏ +376 323 111 . Taxi Domènec Segura provides a van but does not speak English or French ☏ +34 636 490 685 (Spanish number) (Taxi Josep can arrange the ride). Payment must be in cash.

Andy runs private transfers from Barcelona city centre and El Prat airport. Price starts at €230 to Andorra la Vella for a 4-passenger sedan.

By bus [ edit ]

An overview of local buses can be found at bud.ad (in Catalan) international destinations are listed at busandorra.com .

Many coach routes serve Andorra, particularly from Spain , mainly Barcelona but also Girona , Madrid , Malaga , Lleida and Valencia .

Flixbus stops in the towns Andorra la Vella and Sant Julia de Loria .

From France [ edit ]

Toulouse is the main hub for accessing Andorra.

Andbus runs from Toulouse 's Matabiau bus station and Toulouse–Blagnac airport (both 3 hr, €35 ). The stop at Toulouse airport is outside Arrivals, Hall B in front of door B.

Other coach services operate via the French border towns L'Hospitalet (3 km from Andorra) and Latour-de-Carol (Spanish: La Tor de Querol, near the Spanish border, 20 km from Andorra). It is not recommended to take a train from Toulouse or Latour-de-Carol and connect to the public bus at the Gare d'Andorre-L'Hospitallet train station in the morning because the bus departs half an hour before the first SNCF train arrives at this station. The only suitable train-bus connection is the daily train from Toulouse that arrives at Gare d'Andorre-L'Hospitallet at 19:21 and the bus departs at 19:45. This bus service is catered towards Andorrans departing for France or Spain and connect to those trains towards Toulouse and Latour-de-Carol. An alternative option from the Gare d'Andorre-L'Hospitallet train station is to take a taxi to Pas de la Casa (~ €30 ).

From Spain [ edit ]

The trip from Barcelona takes 3 hr 15 min to 4 hr, depending on the number of stops.

Andbus connects Andorra to Barcelona 's airport ( €30 ); and Girona 's bus station and airport (both around 3 hr 30 min, €32 ).

Autocars Nadal also travels between Andorra and Barcelona and its airport.

Alsina Graells has eight trips a day from Barcelona ( €23 one-way and €40 round-trip).

ALSA has daily trips between Barcelona and Andorra. Bus leaves from Barcelona Nord. Tickets are ( €29 one-way and €55 round-trip).

By bicycle [ edit ]

From La Seu d'Urgell in Spain, a 10-kilometre (6.2 mi) ride with a moderate climb of some 150 m (490 ft) of elevation leads to the border of Andorra. There is no dedicated cycle path to the border. You'd ride on the wide shoulder of a somewhat busy highway with cars passing by at a respectful distance. From the border it's another 10 km (6.2 mi) and another 150 m (490 ft) climb to the capital Andorra La Vella.

While entering and leaving from Spain should be doable for most, the only connection with France goes across a true mountain pass. From the last village in France, L'Hospitalet près-l'Andorre (bikes can be brought on the train here from Toulouse) at 1,446 m (4,744 ft) elevation, you get to climb up to Port d'Envalira pass at 2,408 m (7,900 ft) before going back down to Andorra la Vella at 1,023 m (3,356 ft). While the pass seems to be open all year, it naturally can get extremely cold up there. Bicycles do not seem to be permitted on the Túnel d'Envalira which cuts through the mountain under the pass at about 2,000 m (6,600 ft) elevation.

For those who don't want to climb the mountain pass, the local L4 bus connects the capital Andorra la Vella and the border town El Pas de la Casa (2,080 m (6,820 ft) elevation) which is 15 km (9.3 mi) from L'Hospitalet près-l'Andorre. It's usually possible to lay the bikes in the luggage compartment of the bus without a requirement for further wrapping; note that this is not a specialised storage for a bicycle and the drivers naturally take no responsibility for any damages.

Get around [ edit ]

If you have a few days in Andorra, then you can easily visit most of the main villages by the local bus service operated by Cooperativa Interurbana Andorrana, S.A .

There are 7 main bus lines or 'línies', and all of these pass through Andorra La Vella. The fare is between €1.85 to €6.10 one-way depending on how far you are going. Drivers provide change. For the towns nearest to Andorra La Vella, the service is very regular, and as frequent as every 10 minutes during the day. If you are travelling to outlying rural places like Canolic, there are only 2 or 3 buses per day.

The lines are :

• L1 Sant Julia de Loria - Andorra la Vella / Escaldes-Engordany
• L2 Andorra la Vella - Encamp
• LC Circular bus route within Andorra la Vella and Escaldes-Engordany
• L4 Andorra la Vella - Encamp - Soldeu - Pas de la Casa
• L5 Andorra la Vella - La Massana - Arinsal
• L6 Andorra la Vella - La Massana - Ordino
• E (express) Sant Julia de Loria - Andorra la Vella/Escaldes-Engordany

There are also three night bus lines with sparse intervals:

• Bn1 Andorra la Vella - Sant Julia de Loria (every 60 min)
• Bn2 Canillo - Andorra la Vella - Canillo (every 120 min)
• Bn3 Ordino - Arsinal - Andorra la Vella - Ordino (every 90 min)

The roadways in Andorra are winding, congested, and small. Despite the close distances indicated on the chart, it is worthwhile to take your time. Traffic moves slowly. Many locations have narrow streets. It is crowded, particularly in and around the city. Sometimes it's challenging to locate parking.

The 43-km-long main route runs through Andorra. Although the road is generally in good condition, it can get very crowded, particularly near the borders. Although the highway is wide in some areas, driving through Andorra takes a while because of the towns and villages it travels through.

In Andorra, the top speed restriction is 90 km/h. These stretches are few and far between, and even those that do occur are not very long. Numerous roundabouts are present. Watch your mirrors because on the inside of the roundabout, locals often past sluggish tourists.

For Andorran travelers, rest or picnic places are few and far between. They are lacking even in places where there is room to construct them. Later on in this guide, a number of locations are recommended.

By taxi [ edit ]

Taxi Barras ☏ +376 323743 provides local service.

Talk [ edit ]

Andorra is the only country in the world that has Catalan as its sole official language. Street signs are in Catalan, and it doesn't hurt to learn a few words. But almost everyone speaks Spanish as well, and French and Portuguese are widely spoken too. If you plan to visit there, it would be advisable to have at least some basic skills in Spanish, since English is spoken very little, most of the time at hotels. Bus/taxi drivers, shop employees or other service personnel will hardly understand if you talk in English.

See [ edit ]

Threatened by seemingly unchecked development, the country's main draw is still its magnificent mountainous landscapes , offering spectacular vistas in every season. At these heights, summers are cool, making for excellent hiking conditions through the romantic green valleys. Challenging day long hikes can be had on even higher grounds, and will take you through truly memorable scenery. Don't overlook the Madriu-Perafita-Claror Valley , Andorra's only UNESCO World Heritage site . Only reachable on foot, this undeveloped area is an important wildlife sanctuary and consists of forest and fields, dotted with the odd shepherd's hut. In winter, snow covers large parts of the country, changing the Alpine character into an equally beautiful stage for various winter sports.

Yet, there is more to this tiny country. There are a number of lovely historic villages , home to centuries old houses and medieval Romanesque churches and shrines along cobblestoned streets. Good places to sample some culture are Ordino , Santa Coloma d'Andorra (home to the oldest building in the country, a 9th-century church) and Sant Julia de Loria . In between the village of Canillo and Encamp stands the shrine of the country's patroness, Our Lady of Meritxell . A 1972 fire ruined the original statue, but the excellent replica makes a fine stand-in. Les Escaldes is a good place to witness some traditional dance .

The country's capital, Andorra la Vella , may seem like a traffic- and shop-heavy place at first – and indeed it is. Look a little deeper, however, and you'll find the 11th-century Església de Sant Esteve , a Romanesque church dedicated to St. Stephen. A nice piazza and the historic parliament building make for other highlights in your city explorations.

Do [ edit ]

Ski resorts [ edit ].

Most of these resorts were once small mountain villages which have grown due to skiing. The resorts have joined together so that your ski pass covers neighbouring areas. As a result there are now two large alpine skiing areas known as Vallnord and Grandvalira .

Vallnord covers Arcalis and the Arinsal - Pal ski area. Arcalis is quite distant away from Arinsal-Pal but the latter have been joined up by a cable car connecting the two ski areas. The Arisnal-Pal ski area is directly accessible from La Massana right from the middle of the town. 93 km (58 mi) of trails.

Grandvalira covers Soldeu and Pas de la Casa . The Soldeu ski area is also accessible from Encamp and Canillo . This quite cleverly has opened up these areas to cope with the influence of visitors without putting all the strain on Soldeu. It has 193 km of ski slopes between 1710–2640 m. The surface of grandvalira is about 1.926 H, and it's divided into 6 different areas:

• Pas de la Casa —skiing resort right on the French border.
• Soldeu —skiing resort
• Arcalis —ski area at the head of the valley from El Serrat
• Arinsal —skiing resort part of the Arinsal Pal ski area. Also known as Vallnord which means Valley North in English
• Pal —skiing resort part of the Arinsal Pal ski area.
• Arinsal-Pal -- which is two skiing areas connected by cable car. See Arinsal and Pal .

La Rabassa is a cross-country (Nordic) skiing area in southern Andorra above the town of Sant Julia de Loria.

Hiking and trekking [ edit ]

If you would like more information on the mountain huts in Andorra, go to this site . Be sure to bring something other than sandals for your feet and a purse for your cellphone.

Andorra is a great place for hiking. The point of departure is the town of Arinsal at the foot of the Coma Pedrosa (2,942 m/9,652 ft) and the Pic de Médécourbe (2,914 m/9,560 ft).

• The 5-day Coronallacs hiking trail starts and finishes in Escaldes-Engordany.
• Treks from Arinsal (1,500 m) - Pic de Sanfons (2,888 m/9,475 ft, 4hr 45min, climb 1,310 m/4,298 ft, medium until the hut, difficult on the ridge). View on the Coma Pedrosa, the valley of Tor, the lakes of Baiau in Spain as well as on the Pallars mountains. Mountain hut and lake on the way. Parking at Torrent Ribal 1,580 m (5,184 ft).
• Pic de Médécourbe (2,914 m) (4hr 30min, climb 1,335 m/4,380 ft, medium until the hut increasing to difficult on the ridge). A classic! Mountain hut half-way up, lakes and a breathtaking view over the valley of Arinsal, Boet and Vicdessos (France). Parking at Torrent Ribal 1,580 m (5,184 ft). The peak is the western tripoint international boundary of Andorra, France, and Spain.
• Pic de Coma Pedrosa (2,942 m) (4hr 30min, climb 1,370 m, medium until the lake, difficult on the ridge). The highest mountain in Andorra. Mountain hut half way up, lakes. Beautiful view of the surrounding summits, the valley of Arinsal and to the West, the Maladeta and Ecantats massifs. Parking at Torrent Ribal 1580 m.
• Montmantell lakes and the Pic del Pla de l'Estany (2,859 m) (4hr 20min, climb 1,280 m, medium). Mountain hut half-way up, lakes, magnificent view over the Ariège mountains in France and over Andorra. Parking at Torrent Ribal 1580 m.
• Arinsal - Percanela - les Fonts - Pla de l'Estany - Arinsal circuit (2,055 m) (4hr 30min, climb 670 m, medium) 2 mountain huts. Very pleasant circuit which one can do either way. Lovely views of Coma Pedrosa via the imposing natural amphitheatre of Les Fonts. A few bordas (farm houses) on the way, some renovated, some in ruins. Parking at Arinsal 1,466 m.
• Camí del coll de les Cases (1,950 m) (1hr 40min, climb 490 m, medium) Panoramic view over the Ordino mountains and la Massana. Ideal picnic and meditation site. You can continue along the GR11 to Arans (parking at Mas de Ribafeta 1466 m) but transport back to Arinsal must be provided.

Spa [ edit ]

In Andorra La Vella there is the famous Caldea to visit which is a spa/swimming pool complex. This is very popular. It is at the top end of Andorra-la-Vella and you cannot miss it because it is the large glass spire structure which is quite an attraction on the skyline. In the case of Caldea, it is about thermal waters that emanate from the interior of the earth at a temperature of 70º C.

Buy [ edit ]

Money [ edit ].

Andorra uses the euro , like several other European countries . One euro is divided into 100 cents. The official symbol for the euro is €, and its ISO code is EUR. There is no official symbol for the cent.

All banknotes and coins of this common currency are legal tender within all the countries, except that low-denomination coins (one and two cent) are phased out in some of them. The banknotes look the same across countries, while coins have a standard common design on the reverse, expressing the value, and a national country-specific design on the obverse. The obverse is also used for different designs of commemorative coins. The design of the obverse does not affect the coin's acceptability.

Shopping [ edit ]

Andorra la Vella is a tax haven and thus typical duty free shopping goods, such as perfumes, cigarettes and alcohol, are popular purchases. On any given day the capital will have lots of people from Spain and France who've driven up for a shopping trip.

Eat [ edit ]

Escudella De Pages (Catalan peasant soup) or Escudella i Carn d'Ollais often considered the national dish. It is sometimes made with pilotas (giant spiced meatballs).

The Trinxat , based on cabbage, potato and bacon in loaches, is the other typical dish of the country's gastronomy and that can be tasted in most of Andorra's traditional cuisine restaurants, many of them rustic huts now transformed into restaurants.

Drink [ edit ]

You will find Estrella Damm, a beer from Barcelona, all over the country.

• 42.575361 1.482856 1 Destil·leries Andorra ( Destil·leries El Serrat ), Urb. Els Camps, AD400, La Massana - Arinsal , ☏ +376 333 189 . Producing the country's "national spirit", Anis Andorrana, as well as some other liqueurs, this distillery located in Arinsal offers free tours and tastings to walk-in visitors and has a factory store. Its products can also be bought at other supermarkets and liquor stores around the country. ( updated Dec 2022 )
• Wine – The main Andorran grape varietal is pinot noir.
• Alpha Brewery – The country's only brewery that makes a couple different styles of beer is not sold in most stores. Small gift shops and our tourist-centric businesses may have some.

Sleep [ edit ]

There are no well known five-star international chain hotels, such as Four Seasons, Fairmont, Intercontinental or Marriott in Andorra. But there are several luxury hotels in Andorra with 5 stars and exclusive services such as the Sport Hotel Hermitage & Spa, Andorra Park Hotel or the Hotel Plaza. All from Andorran hotel chains but an excellent option for those seeking luxury and 5 stars. Even three-star chains like Best Western are not here. The only well-known chain hotels are Holiday Inn and Ibis, in Andorra la Vella and Escaldes-Engordany respectively (Escaldes-Engordany is just east of Andorra la Vella). The remaining hotels in Andorra are almost always independently operated; the quality and service provided by a four-star hotel, as classified by the local tourism board, is not as good as what you expect from other destinations.

Work [ edit ]

To work in Andorra you need to a work permit issued by the government. If you are on business for only a few days then this would not apply.

Stay safe [ edit ]

There is not much threat from other people in Andorra, but keep safe on mountains. Don't go too high without knowing what you are doing. See Altitude sickness for more.

Drivers are warned to avoid crossing back into France if the Spanish side of the Pyrenees has enjoyed beautiful warm sunshine all day and the road temperatures drop considerably towards the evening – there is danger of black ice from ice melt. The weather in the French Pyrenees is frequently vastly different than that of Andorra and the Spanish Pyrenees. Stay overnight if necessary, as cold morning temperatures are more apparent and less treacherous than sudden evening icing. Driving can become dangerous especially in winter if you don't obey the speed limits or traffic signs due to its narrow roads, sharp turns and mountainous terrains. From November 1 to May 15, drivers are legally required to have winter tires or snow chains installed. Otherwise you will be fined €180 by the police.

Stay healthy [ edit ]

The main hospital in Andorra is the Meritxell (pronounced merichai) Hospital (+376 871 000).

Tap water is drinkable, though if you're coming from far away it's possible the local microbes and minerals may upset your stomach at first. As in many places, bottled water is safest.

Respect [ edit ]

Andorra is not part of Spain or France and people could be offended if you say that it is.

Connect [ edit ]

Cellular service [ edit ].

Andorra's telecom providers are not part of the EU roaming zone so turn off your cell phone if you want to avoid hefty roaming charges, unless your plan allows you to roam in Andorra. If you wish to purchase a local SIM for use during your time in Andorra, Andorra Telecom sells SIMs for €15 with €15 credit preloaded. This is enough to purchase 1.5 GB of data.

Internet [ edit ]

Andorra is a well-connected country and has accepted the Internet with open arms. Almost as many people subscribe to the Internet as landline phones. Free public WiFi is available in parts of major towns, and many restaurants have WiFi as well.

Postal services [ edit ]

Uniquely, Andorra does not have its own postal service and instead relies on both the Spanish and French postal systems. You'll frequently see buildings with two mailboxes, and if you look closely you'll notice that one is for Correos (Spain) and one for La Poste (France). The main offices for both are in Andorra La Vella.

However, regular French and Spanish postage stamps are not valid for use in Andorra, and both postal services issue special stamps for use in Andorra only. Their stamps are also not interchangeable, so stamps issued by each postal service is only valid for their own respective mailboxes. Stamps are only required for international postage, as domestic postage within Andorra is free. Letters to Spain are cheaper if you use the Spanish postal service, while letters to France are cheaper if you use the French postal service. For letters to other countries, compare prices between the two postal services before you decide.

The French post office ( Correus francesos ) is at Carrer de Bonaventura Armengol is usually open M-F 08:30-14:30, Sa 09:00-11:59 Tel: +376 820 408

The Spanish post office ( Correus espanyols ) is open M-F 08:30-14:30, Sa 09:00-12:59 Tel: +376 820 257.

Go next [ edit ]

• Latour-de-Carol - first stop on the scenic descent for Perpignan with the open-top Yellow train (fr: Le train jaune) is reachable with the same TER train line 22 that serves L'Hospitalet-près-l'Andorre.

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Taxes in andorra and their differences with spain.

Taxes in Andorra, do they exist? Many think not, but taxation exists in Andorra and it is very different compared to Spain making Andorra so fiscally attractive.

In the following article we are going to talk about the differences in taxes from Spain to Andorra.

Taxes in Andorra compared to taxes in Spain are much more attractive, why? Because their tax rates are much lower.

Therefore, many companies seek to set up in Andorra in order to be able to pay their taxes in Andorra.

The tax system in Andorra

The small Principality of Andorra is well known for its spectacular scenery, snow-capped mountains and ski slopes.

However, in addition to everything mentioned here, Andorra has an increasingly diversified tax system that attracts a high percentage of online and offline entertainment professionals.

In fact, the number of Spanish citizens living permanently in Andorra is quite high and the number has increased in recent years.

National data shows that 28,015 Spanish citizens inhabited the principality at this time – about 34% of its population.

Main differences with the Spanish system

There are three main taxes in Andorra.

The general indirect tax (IGI), equivalent to VAT in Spain, which has a tax rate of 4.5% (generic), while in Spain it is 21%.

The personal income tax irpf, which in Andorra has a maximum tax rate of 10%, while in Spain it can reach almost 50%.

Corporate income tax, which in Andorra has a rate of 10%, while in Spain it is 25%.

Who pays taxes in Andorra? 🤔

Andorran residents who reside there have to pay taxes.

In addition, other indirect taxes are paid as residents and non-residents, such as VAT on purchases of goods and services.

Therefore, it is the people who have tax residence in Andorra, who have to pay their taxes in Andorra.

It is important to note that Andorra IS NOT A TAX PARADISE. In this article you have all the information about the country and its taxes.

Personal Income Tax (IRPF)

Personal income tax in Andorra is an important tax, as it is in Spain.

The government imposes a tax on income earned by the individual derived from employment income, which includes pension income from assets.

The tax is applicable to all residents of the Principality and is levied on all income earned by the individual worldwide.

However, in this country taxes paid abroad can be deducted if there is a double taxation agreement (DTA).

The residents in Andorra do not pay the initial 24,000 euros to the IRPF.

From 24,000 euros they pay 5% and;

From 40.000 euros they pay 10%. Therefore, from 40,000 euros, it will be when you start to pay tax at 10% in Andorra.

It is very important for you to know, as we have explained in this web page that taxing in Andorra, implies that the dividends you receive from a company in Andorra, in Andorran territory, if you reside in Andorra Andorra considers that you should not pay for them again, so all dividends from companies in Andorra are exempt in Andorra.

Personal Income Taz or income tax in Andorra

If you live in Andorra, you are therefore obliged to pay IRPF in Andorra.

Specifically, the Personal Income Tax does not include donations and inheritances.

Here are some examples of what it is like to be taxed in Andorra and about the country’s taxation of individuals.

Tax on trading in Andorra

Andorra does not tax capital gains on the sale or use of listed shares as long as the sale price is at least 25% of the total.

The instrument is based on the rights of the shareholders on the shares being exchanged.

In relation to cryptocurrencies, 10% of the profit is paid as from €3,000. The first 3,000 euros are totally exempt. The base tax rate will be the generic personal income tax rate in Andorra.

The IGI: the Andorran VAT

The VAT in Andorra is called IGI.

The general indirect tax on products and services in Andorra is 4.5% and this is very much in contrast to the 21% in Spain.

The statement of accounts will be based on the average income of a company.

Those who earn below 250,000 € per year must pay it annually between January and July.

Companies invoiced between 250k and 300k carry out quarterly settlement, while companies with total annual revenues exceeding 300k euros carry out monthly settlements.

The general IGI of 4.5% includes some reductions such as:

• The 0% reduction applies mainly to medical and educational products and services and to transfers.

Here you will find more information about taxation in Andorra, specifically about VAT in Andorra.

Business taxation

Company rates are among the lowest in neighboring countries, which makes it a good way to start a business in Andorra. Corporate taxation in the Principality is highly attractive.

Corporate taxes under Andorran law provide an average of 10% on profits. It applies to any company, regardless of its legal form.

Corporate Income Tax (IS)

Finally, one of the most important tax laws is the corporate tax on the company’s profits in its territory.

It is a very small tax in the country like others such as IGI and IRPF.

How much is paid? The company also pays 10% of its profits to certain types of companies.

Also companies based in Peninsula Spain pay 25% of the profits, so the taxation in Andorra is also interesting.

Taxes that only exist in Andorra and not in Spain

Andorra can offer taxes that are not found in Spain.

Some very interesting and famous city taxes such as the traditional «foc i lloc» tax are paid that vary depending on the city in which they are from the parishes.

The parishes are based on the geography and structure of Andorra. These taxes are aimed at adults aged 18 to 65 who reside in a single parish in Andorra. There are more taxes in Spain and Andorra than in other countries.

Taxes in Andorra vs. Spain

In this case, we will better see the difference in a picture, since the tax rate of a tax varies greatly depending on whether it is paid in Spain or in Andorra. We should also take into account the autonomous community in Spain, in which for example individuals are making their tax return.

Tax on income of non-residents in Andorra

In some cases, the Andorran Tax Agency may impose a withholding tax on those individuals or legal entities that carry out professional activities in Andorra without having their tax residence in Andorra.

These are cases such as, for example, a professor who lives in Spain and gives occasional classes at the University of Andorra.

In this case the Andorran country will have to withhold a withholding tax at a rate of 10%, however that person will be able to deduct the amount paid in Andorra, in Spain, in his tax return.

Advantages and disadvantages of paying taxes in Andorra with respect to Spain

The main advantages of residing in Andorra are related to its lower tax burden compared to Spain.

VAT/IGI, personal income tax, corporate tax and inheritance taxes in Andorra are significantly lower compared to Spain and make Andorra a very attractive economic destination.

In addition to not paying any property tax. Most disadvantages can have a social security quotient that is often extremely high, so if you are a freelancer, you may have to spend between 40,000-50,000 euros per month on your income.

How low taxes affect public services in Andorra

In spite of having low taxes, it must be taken into account that at the time of making the income tax declaration and paying the corporate tax in the country, even if it is at a rate of 10%, the Andorran country collects a lot of money.

Therefore the public coffers of the Andorran country compared to Spain, are higher.

This is projected in quality public works, a good social security, a health sector that enters the world top in relation to the quality of their doctors, a variety of bus lines of public transport, etc..

Even in Andorra we can find three different types of public education systems.

The quality of life and safety in Andorra is much higher than in neighboring countries, even than in the vast majority of countries in Europe.

Property tax in Andorra 🏠

In Andorra there is no property tax as in IBI in Spain or in France. Compared to these countries, property investment in Andorra is much more interesting.

In the country there is a large real estate market, this real estate is constantly moving and makes the market constantly booming, as the real need for housing in Andorra is real.

More and more people want to reside in the country because of its low taxes and that makes that there is more and more need for real estate in the Principality to be able to formalize effectively and legally the residence.

That is why the real estate market does not cease, compared to other European countries.

Taxes on the purchase of a property

The owner of the property in Andorra pays 4% of the value for which the property was purchased and the purchase tax. This tax is much lower than in the EU.

Here you have in detail more informatio n, an example of the taxes in Andorra that you have to pay if you buy or sell an apartment in Andorra.

Taxes in the real estate market

Andorra’s tax legislation has several taxes. We are talking about real estate.

Note that in the Principality of Andorra, in the case of real estate you will have to pay capital gains tax if you sell a property in the Principality, provided that you have made a profit.

Please note that you will not have to pay tax again in Andorra on the income obtained from the sale of your home or any other real estate.

Inheritance and gift tax in Andorra

In the Principality of Andorra there is no inheritance and gift tax.

This also makes the fiscal framework in Andorra very attractive, since many people consider living their retirement in the Andorran country, and if they donate in life the properties or incomes they have, as well as any house to their children.

This is completely tax free in Andorra, so no tax rate is applied.

Other taxes and fees in Andorra

There are other types of taxes and fees in Andorra, such as the tourist tax, which applies only to foreigners in Andorra.

But Andorra is one of the countries in Europe with less taxes.

If you need more information, about corporate tax (IS), IRPR, IGI, etc. Or about real estate, the residence in Andorra or if you need to make the income tax in Andorra, do not hesitate to contact us without obligation.

Here and here you have a guide and more information about taxes in Andorra available on our website.

It is possible that you have doubts about how to establish a capital company in the country, about its taxation, or about the taxation to which it is subject or that you have other aspects that you want to comment related to our services.

We can help you.

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Andorra Tax System

Albeit Andorra is no longer a tax haven, Andorra’s tax system presents a much lower rate than the surrounding countries and the European average . Andorra comes with one of the lowest taxes in the world, with more attractive nominal and effective applicable rates. Find out all about the Andorra tax system and the new tax rate of: IGI, IRPF, IRNR.

Andorra Tax Rates

How many taxes are paid in Andorra? Andorran taxation benefits individuals and companies. The tax system aims to attract also large international corporations. Principality does not only benefit the international business but also favors SMEs. With a corporate tax rate in Andorra of 10% (can be reduced to 2% in certain circumstances) the Pyrenean country offers the lowest income and indirect taxes in Europe.

Andorra VAT (IGI)

The Impost General Indirecte (IGI), equivalent to the tax known as VAT (Value Added Tax) in the countries of the European Union is the main indirect tax. As with its European counterpart, Andorran IGI has different rates depending on the product or service taxed:

• The general rate of IGI is 4.5%. Equivalent to 21% in Spain, 20% in France, 19% in Germany, or 23% in Ireland.
• Super reduced rate of 0% for certain medical and educational services, housing rentals, stamps, and gold investment.
• Reduced rate of 1% applicable to human consumption, water for human and animal consumption and irrigation, books, magazines, and newspapers.
• A special rate of 2.5% is applied to transportation (except cable transport), libraries and archives, art and cultural institutions such as museums, historical sites, music, cinema, theater, art objects, collectibles or antiques, etc.
• Increased tax rate of 9.5% applicable only to banking and financial services.

Andorra Corporate Income Tax (IS)

The tax par excellence of Andorra’s corporate tax is called Impost de Societats (IS), which corresponds to a general flat rate of 10%. However, there are some interesting bonuses to take into account for future residents:

• First-year any taxpayer has a reduction of 50% of the liquidation quota.
• For taxpayers who are constituted as new entrepreneurs of a business or professional activity and who have an income of less than €100,000, the tax rate applicable during the first 3 years of activity is: 5% for the part of the tax base between €0 and €50,000, 10% above the remaining tax base.

We recommend reading the tax law or consultation with professionals such as the associates of Andorra Partner since there are different nuances to resort to these bonuses as well as to present the tax correctly. We also suggest finding out about municipal taxes, as well as the procedures to follow to create a company in Andorra .

Personal Income Tax in Andorra (IRPF)

Well known by all, the Andorran personal income tax is one of the lowest taxes in Europe. IRPF is a tax composed of brackets that are applied on the taxable base, similar to that of neighboring countries. Without going into the many details of the individual tax, below we introduce a simplified view:

• From €0 to €24,000€ pays 0%
• From €24,000 to €40,000€ pays 5%
• Any amount over €40,000 is taxed at 10%, which is the highest rate

In the case of married couples the brackets are slightly different:

• From €0 to €40,000 pays 0%
• From €40,001 and above pays 10%

Any dividend received from an Andorran company is taxed at 0% in Andorra, avoiding double taxation . You can read much more about this tax in our article dedicated exclusively to Andorra’s personal income tax .

Who is Subject to Personal Income Tax in Andorra?

• Any person residing in Andorran territory for more than 183 days per calendar year
• Anyone who has economic activity in the Principality that generates benefits, direct or indirect

Income to which the IRPF is Applied

• Trade or activity: remuneration, salaries, bonuses
• Operation of real estate, including rent
• Commercial, professional and administrative activities
• Bank interest
• Income from change in the composition of assets: capital gains or losses

The Following are Not Subject to IRPF Payment

• Donations and inheritances
• Income from the transfer of real estate

Income Tax in Andorra for Non-Residents (IRNR)

Individuals or companies whose professional or business activity is carried out in Andorran territory, but permanent residence is outside Andorra, are subject to a non-resident income tax which is generally 10%. Companies providing services and employees in Andorran companies are obliged to pay this tax.

These are usually Spanish and French cross-border workers who live in their respective countries but sporadically and not permanently work in Andorra. This also applies to employees of companies providing services, professionals related to education, artists, and employees affiliated to CASS .

Capital Gains Tax in Andorra

Andorra capital gains tax is treated as any other ordinary economic income and is generally taxed at a rate of 10%. However, if the capital gains arising from the transfer of qualifying holdings or the transfer of the corresponding interest in a holding company are exempt from taxation.

Andorra Property Tax

When buying real estate in Andorra you have to take into account 4% transfer tax, divided between the government and the parish. On the other hand, there is a tax related to the capital gains which decreases from 15% to 1% and is applied to the profits generated by real estate transactions, sale of real estate, depending on the time the owner kept the property before selling it:

• 15% if you sell your property within 1 year
• 13% if sold in less than 2 years
• 10% if sold in less than 3 years
• It then decreases by 1% each year

In this way, the Government of Andorra tries to avoid real estate speculation in the country.

Other Taxes in Andorra

Municipal or parish taxes (comus).

• The traditional “foc i lloc” (fire and place) tax
• Tax on the real estate property
• Tax on rental income
• The tax on the location or location of commercial, business, and professional activities
• The tax on construction

Municipalities or Comus have the power to create their regulation and local taxation, thus taxes and their burden vary according to the municipality.

Indirect Taxes

• Real Estate Transfer Tax (ITP)
• Tax on the provision of insurance services
• Special taxes

Direct Taxes

• Tax on capital gains on the transfer of real estate (PLV)
• Tax on the income of non-residents (IRNR)
• Taxation of savings income
• Tax on gambling activities
• Tax on the Registry of Owners of Economic Activities (Registro de Titulares de Actividades Económicas)
• Tax on Vehicle Ownership
• Fees on immigration matters
• Judicial fees
• Trademark Office fees Public prices
• Tax on job applications
• Animal health and food safety tax
• Consumption tax (customs)
• Common external tariff (customs)

Tax Exemptions in Andorra

Taxation in Andorra also offers a series of benefits in the form of exemptions to both entrepreneurs and companies:

• The first €3,000 for income from movable capital
• Total of dividends issued by the Andorran company , and received by an Andorran resident .
• 100% of the first €24,000 are exempt from personal income tax, and 5% of the following €16,000.

This makes the Principality a very attractive option to create or move there all kinds of businesses, either as a company or as a freelancer, including holding companies, e-commerce companies, or a real estate investment .

Substantial Tax Benefits for Andorran Residents

Regarding Inheritance and Gift Tax, we have good news since in Andorra inheritance is tax-free for residents, whether they are local citizens or foreigners whose tax residence is in the Principality of Andorra. There are also no taxes on donations between individuals in Andorra or on wealth. Even if bank interests do not exceed €3,000 per year, they are also exempt from taxation. These are other of the many tax advantages that Andorra offers and why it is interesting to move your tax residence to the country of the Pyrenees.

The tax burden is much lower in Andorra if we compare these tax rates with countries like Spain and France. Having a tax residency in Andorra , creating a company in Andorra, or working in this country has incredible tax advantages.

This popular European city is the latest to increase its tourist tax to battle overtourism

Barcelona is the latest European city to increase its city-wide tourist tax, a slight increase of €0.50 (about $0.53) per night, as the city seeks to curb overtourism. 

The new price of €3.25 (about $3.45) was implemented on April 1 as part of the Stays in Tourist Establishments Tax . The bylaw was introduced in 2021, when the tourist tax was €0.75 (around $0.80) per night, and gradually increased the tax each year through 2024. Now, if someone is staying in Barcelona for seven nights, the new total tax amount will be €22.75 (around $24).

“It was the objective sought: to contain the number of tourists and increase tourist income because our model is no longer mass tourism but quality tourism, which adds value to the city,” deputy mayor Jaume Collboni said in March, according to Euronews . 

The tax is added to a tourist’s accommodations bill when they stay at official tourist establishments in the city. The money goes toward enhancing the city’s infrastructure, such as improving roads. 

Other popular European destinations, such as Amsterdam and Venice, also recently increased tourist taxes for similar reasons. 

Learn more: Best travel insurance

Are tourist taxes the future of travel? What to know about the increasing tourist fees worldwide.

“The new and increasing tourist fees across Europe allow cities to fund measures to attract more vacationers, support the local infrastructure and businesses, as well as preventing damages from overtourism,” Tiffany Mealiff, a travel insurance expert at Quotezone , said in a statement to USA TODAY.

However, Barcelona visitors have had to pay a regional tourist tax since 2012, according to Euronews . This tax amount depends on a traveler’s accommodation type, costing more if someone is staying at a luxury hotel than an Airbnb. 

Barcelona continues to reign as Spain’s most popular tourist destination. In 2022, Barcelona welcomed 9.7 million tourists , just slightly below pre-pandemic levels in 2019, according to the Barcelona City Council. However, tourists were found to be staying in the city longer than in 2019. 

In 2022, the city also sought to cap the number of people in a tour group and ban megaphones by tour guides in an effort to curb the disruptive effects of overtourism. 

Travelers planning their European getaway should be mindful of the additional costs that “are often not obvious beforehand,” according to Mealiff, as they plan their trip budgets.

Kathleen Wong is a travel reporter for USA TODAY based in Hawaii. You can reach her at [email protected] .