# Andorra

 Country code: AD · Currency: EUR · Language: Catalan

**Pros**
- Low tax burden with maximum 10% corporate and personal income tax rates.
- Exceptional public safety and virtually non-existent crime rates for residents and businesses.
- High level of economic freedom and minimal bureaucratic corruption within the local administration.

**Cons**
- Limited physical accessibility due to the absence of an international airport or rail network.
- Small domestic market and restricted labor pool for specialized business operations.
- Growing regulatory pressure to align with European Union financial standards and transparency requirements.

Long story short: Andorra caps income tax at 10% and VAT at 4.5%, a fiscal dream tucked away in the heart of Europe.

But becoming a resident or opening a company demands a hefty deposit and a bulletproof file, the state handpicks who gets in. Banks, burned by past money laundering scandals, will scrutinize you thoroughly before you get anywhere near a business account.

Besides that: corruption is close to nonexistent, streets are spotless, Catalan food is generous, and the mountain scenery will take your breath away. One catch: it's a tiny market, 80,000 people relying mostly on tourism and skiing.

## Will your income be taxed?

Long story short: NO.
**Andorra** doesn't tax personal income, and nobody comes sniffing around when you settle in. No withholding, no tax return, no centre-of-vital-interests trap waiting to snap shut.

Earn what you want: the taxman here simply doesn't know your name.

**01.1 Income tax**

| Metric | Value | Detail |
| --- | --- | --- |
| Personal income tax | NONE | no personal income tax framework |

**01.2 Tax residence test**

| Metric | Value | Detail |
| --- | --- | --- |
| 183-day rule | does not exist here |  |
| Economic interest | does not exist here |  |
| Family centre | does not exist here |  |
| Habitual abode | does not exist here |  |
| Extended-stay test | does not exist here |  |

## Will your wealth be taxed?

Long story short: NO.
**Andorra** keeps its hands off what you hold. *No capital gains tax*, no annual wealth grab, no inheritance regime.

Your portfolio compounds in peace and leaves the way it came in; nobody's standing at the door with their palm out.

**02.1 Investment income**

| Metric | Value | Detail |
| --- | --- | --- |
| Capital gains | NONE | no capital gains regime |
| Dividend tax | NONE | no dividend tax |
| Interest income | NONE | no interest income tax |

**02.2 Wealth & estate**

| Metric | Value | Detail |
| --- | --- | --- |
| Wealth tax | NONE | no annual wealth tax · no real-estate wealth tax · no net-worth assessment |
| Inheritance system | NONE | no estate tax · no heir-based duties · no succession tax framework. Wealth transfers across heir-classes are not taxed in this jurisdiction. Only standard probate / registration fees may apply. |

**02.3 Crypto**

| Metric | Value | Detail |
| --- | --- | --- |
| Crypto · tax regime | PROGRESSIVE | Rate: 10% · Crypto-assets are taxed as capital gains under the Personal Income Tax (IRPF) at a maximum rate of 10%. Gains are integrated into the 'Savings Base' (base de l'estalvi), which features a €3,000 annual exemption. According to the Tax Authority's interpretation (Technical Communication 4/2015), crypto-to-crypto exchanges are taxable events as they constitute an alteration in the composition of the taxpayer's assets. The Digital Assets Law (24/2022) and Law 42/2022 provide the regulatory and fiscal framework. Professional mining and trading are taxed as business income at a flat 10% rate. |
| Crypto-to-crypto | TAXABLE | each swap counts as a disposal — gains realised at every trade |
| FATF travel rule | NOT SIGNED | no information-sharing obligation on VASP transfers |

## Easy to run a company there?

Long story short: YES.
**Andorra** charges *no corporate income tax*, but treats *misuse of corporate assets as a crime*. Even as sole shareholder, dipping into company funds for personal use can land you in front of a judge; your own consent doesn't erase the offense.

Registries stay *non-public*, so at least your name stays off the internet.

Fiscally royal; just keep the books straight, because this is not a place to get casual with the company card.

**03.1 Rates**

| Metric | Value | Detail |
| --- | --- | --- |
| Corporate tax | NONE | no corporate income tax framework |
| VAT standard rate | NONE | no general VAT · no consumption tax framework |

**03.2 Regime & registry**

| Metric | Value | Detail |
| --- | --- | --- |
| IP Box · Patent Box | NONE | no IP regime · IP income taxed under standard corporate rules |
| Misuse of corporate assets | CRIMINAL | criminal liability · Article 264 of the Penal Code (Llei 9/2005, del 21 de febrer, qualificada del Codi penal) · Andorra follows the 'Autonomy of the Legal Entity' principle, treating the company's assets as strictly distinct from those of its shareholders. Under Article 264 of the Penal Code, the offense of 'Abús de béns i valors socials' (Misuse of Corporate Assets) is classified as a public offense, meaning the Public Prosecutor can initiate proceedings without a private complaint. This distinguishes it from 'Administració deslleial' (Art. 263), which requires a victim's complaint. Consequently, a sole shareholder-director can be held criminally liable for using company funds for personal benefit (such as personal vacations or vehicles) because such acts are legally deemed to prejudice the 'social interest' of the company as an independent entity, regardless of the owner's consent or the company's current solvency. |
| Shareholders privacy | PRIVATE | Registre de Societats Mercantils |
| Directors privacy | PRIVATE | Registre de Societats Mercantils |

**03.3 Incorporation cost**

_In this country, the most standard company form is called Societat de Responsabilitat Limitada (SL) (Limited Liability Company). The costs below are for incorporating a company in its simplest form, for reference only._

| Metric | Value | Detail |
| --- | --- | --- |
| Government Registration and Registry Fees (Taxa d'inscripció) | USD 1,178 |  |
| Notary Fees and Public Deed of Incorporation | USD 985 |  |
| Foreign Investment Authorization Fee | USD 290 |  |
| Professional Incorporation Services and Legal Setup | USD 4,055 |  |
| Company Name Reservation and Administrative NIA | USD 270 |  |
| Total | USD 6,778 |  |

## A good fit for a holding?

Long story short: NO.
**Andorra** has no treaty network at all, which buries the holding question, full stop.

Every dividend in or out eats the statutory withholding at full rate, and no domestic regime can patch a hole that sits on the source side. Don't park a holding here.

**04.1 Substance & exemptions**

| Metric | Value | Detail |
| --- | --- | --- |
| Territorial · individuals | WORLDWIDE | worldwide income taxation regardless of source |
| Territorial · corporates | WORLDWIDE | worldwide corporate taxation |
| Participation exemption | 100% | 5% holding · 12 months min |
| CFC rules | NONE | no controlled foreign corporation regime · foreign-source corporate income out of scope |

**04.2 Withholding tax · non-resident**

| Metric | Value | Detail |
| --- | --- | --- |
| WHT · dividends | NONE | no withholding on outbound dividends |
| WHT · interest | NONE | no withholding on outbound interest |
| WHT · royalties | NONE | no withholding on outbound royalties |
| Tax-haven WHT | NONE | no punitive rate on record |

**04.3 Treaty network**

| Metric | Value | Detail |
| --- | --- | --- |
| Treaties signed | 0 | active |
| Treaties pending | — | in negotiation |

## Easy to come and go?

Long story short: SOME.
**Andorra** taxes your worldwide income while you're resident, but at least the exit is free: *no exit tax* on the way out.

Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.

**05.1 Exit & dual nationality**

| Metric | Value | Detail |
| --- | --- | --- |
| Exit tax | NONE | no triggers active · residence change tax-free · no deemed-disposal mechanism |
| Dual citizenship | FORBIDDEN | naturalisation requires renouncing existing citizenship |

**05.2 Citizenship paths**

| Metric | Value | Detail |
| --- | --- | --- |
| Residence | 20 years | available path to naturalisation |
| Marriage | 3 years | available path to naturalisation |
| Birth | jus soli | available path to naturalisation |
| Descent | — | not available |
| Investment | — | not available |

## Is your money watched?

Long story short: PARTLY.
**Andorra** plays along with *some* of the exchange machinery (typically CRS, MLI, MAAC), so a slice of your financial life gets shipped to treaty partners. Corporate registries stay *non-public*, so ownership stays opaque.

Half-watched: they see some of the money, none of the structure.

**Multilateral reporting frameworks — 3/9 active · 3 pending**

| Item | Status | Detail |
| --- | --- | --- |
| CRS | Signed | 2018 |
| CARF | None | — |
| FATCA | None | — |
| MLI | In force | 2021 |
| BEPS | Signed | — |
| MAAC | In force | 2016 |
| GLOBAL FORUM | Signed | — |
| EOIR | In force | — |
| CRYPTO TRAVEL RULE | None | — |

## Is it blacklisted?

Long story short: SOMEWHAT.
**Andorra** is *flagged* by a few national tax administrations (drawn from FR/ES/PT/BR) and sits outside the FATF club.

The friction is selective: anti-abuse rules fire on specific corridors, and counterparties ask more questions than usual. Neither the FATF nor the EU has it on their lists, which keeps the damage contained: a nuisance, not a scarlet letter.

**Blacklist exposure — Listed by 2 authorities**

| Item | Status | Detail |
| --- | --- | --- |
| EMBARGO | Clear | un / us / eu sanctions |
| FATF | Clear | grey / black list |
| EU | Clear | non-cooperative list |
| FRANCE | Clear | ETNC list |
| SPAIN | Listed | tax-haven list |
| PORTUGAL | Clear | favourable regimes |
| BRAZIL | Listed | low-tax list |

## Do you feel free there?

Long story short: PARTLY.
**Andorra** sits in the *middle band* of the RSF press-freedom index (rank **\#65**): civil society functions, but the walls are real and you'll learn fast where they stand.

Crypto lives in the standard regulated tier.

**08.1 Press freedom**

| Metric | Value | Detail |
| --- | --- | --- |
| Press freedom · RSF index | 65/180 | score 63 · ↑ 7 ranks year-on-year |

Central bank digital currency

NONE

no announced CBDC program · no pilot · no retail or wholesale prototype on record

## Connected to the world?

Long story short: POORLY CONNECTED.
The two rails that matter are both dead in **Andorra**. *Stripe* won't onboard you, so card payments mean a foreign structure or a local processor with its own rules. *Amazon* doesn't deliver either.

Some secondary services run (**3/11**), but for an online business this is swimming against the current.

**Accept payments — 2/6 available**

| Item | Status | Detail |
| --- | --- | --- |
| Stripe | Not available | card payments |
| PayPal | Available | wallet payments |
| Adyen | Not available | enterprise psp |
| Mollie | Not available | eu payments |
| GoCardless | Not available | direct debit |
| Paddle | Available | merchant of record |

**Bank and move money — 1/3 available**

| Item | Status | Detail |
| --- | --- | --- |
| Wise | Available | multi-currency |
| Revolut | Not available | personal banking |
| Revolut Business | Not available | business banking |

**Buy and sell on Amazon — 0/2 available**

| Item | Status | Detail |
| --- | --- | --- |
| Amazon | Not available | consumer delivery |
| Amazon Seller | Not available | marketplace selling |

  SEE ALSO## Other jurisdictions worth comparing

Picked by similarity of strategic profile to Andorra. No editorial ranking — neighbours in the same scoring space.

  PROFILE-ADJACENT Same shape, comparable overall friction.

 [   Aruba AW  → ](https://stateless.sx/en/country/aw) [   Sint Maarten SX  → ](https://stateless.sx/en/country/sx) [   Northern Mariana Islands MP  → ](https://stateless.sx/en/country/mp)

  NOTABLY MORE FAVORABLE Same family of strategies, higher total score.

 [   Faroe Islands FO  → ](https://stateless.sx/en/country/fo) [   Indonesia ID  → ](https://stateless.sx/en/country/id) [   Philippines PH  → ](https://stateless.sx/en/country/ph)

  NOTABLY LESS FAVORABLE Same family of strategies, lower total score.

 [   Côte d’Ivoire CI  → ](https://stateless.sx/en/country/ci) [   Gambia GM  → ](https://stateless.sx/en/country/gm) [   Solomon Islands SB  → ](https://stateless.sx/en/country/sb)