Taxes in Andorra 2026: Fiscal Balance and Key Points for Your Relocation
Understanding the financial health of a jurisdiction is crucial when planning to move your assets or relocate your company. The budgetary execution data for the Principality confirms a surplus of 61.8 million euros in the first half of the year, driven by the performance of personal income tax and domestic consumption.
TL;DR: The Essentials of the Regulations
- Personal Income Tax (IRPF) grew by 20% and the IGI (VAT) by 10%, supporting the Andorran public accounts.
- Corporate Tax experienced a temporary slowdown due to adjustments in previous deductions under tax law.
- Immigration deposits for self-employed and non-profit residency now count as non-refundable payments following the second Omnibus Law.
- Public accounts remain solvent, ensuring a stable regulatory framework for those looking to reside legally in the Principality.
X-Ray of the Andorran Public Coffers in 2026
What do the country’s budget figures really tell us? Beyond the macroeconomic headline, they demonstrate the robustness of a model that does not need to suffocate the taxpayer to support state spending.
Direct revenue linked to individuals and indirect taxation have comfortably offset cyclical declines in hydrocarbons and tobacco. This confirms that the base of high-net-worth residents and service companies continues to expand organically.
If we analyze taxes in Andorra in detail, the fiscal structure maintains maximum rates of 10% for both personal income and corporate taxes, complemented by a general IGI of 4.5%, which contrasts sharply with the tax burden of neighboring countries.
| Tax Figure / Item | H1 2025 Revenue | H1 2026 Revenue | Variation (%) |
|---|---|---|---|
| IRPF (Personal Income Tax) | €21.9M | €26.3M | +20% |
| IGI (General Indirect Tax) | €89.4M | €98.6M | +10% |
| Corporate Tax | €88.8M (est.) | €81.7M | -8% |
| Immigration Fees and Deposits | €3.2M (annual budget) | €9.16M | +186% (vs. forecast) |
The 8% retreat in Corporate Tax does not reflect a decrease in corporate profitability. It corresponds to the technical mismatch of Law 5/2023 on the reform of direct taxation, published at the time by the BOPA, which readjusted advance payments and deductions from the previous fiscal year.
Changes in Immigration: The Direct Impact on Your Residency
There is one figure in the budget that every investor should look at closely: immigration fee revenue has reached 9.16 million euros, compared to an annual estimate of just 3.2 million.
What accounts for such an increase?
The second Omnibus Law implemented a substantial modification: the amounts required by Immigration for self-employed corporate owners and passive residency profiles are now formally counted as direct State revenue, altering the conditions compared to the old refundable deposit schemes.
The Government’s fiscal criteria reinforce the Principality’s solvency, but require planning entry treasury with absolute legal rigor before initiating the process.
This adjustment makes it essential to choose the correct typology when applying for your residency in Andorra, calculating the establishment cost against the effective fiscal return of your business activity in the medium and long term.
How Does This Affect Your Move to Andorra?
From the Andorraway consulting desk, we see these data points as a confirmation of stability: a State with a 61-million-euro surplus does not improvise aggressive tax hikes or create surprise taxes on wealth.
However, technical operations do not allow for calculation errors.
Last month, we assisted a Swiss software consultant who wanted to relocate his family holding. During the preliminary audit phase, we found that his original bank advisor had not considered the impact of the reform on the non-refundable immigration deposit, compromising part of the liquidity he intended to allocate to the purchase of his home.
Thanks to our 360º service, we reorganized the timing of corporate incorporation, optimized dividend distribution, and coordinated with the Govern d’Andorra to present documents in record time, avoiding unnecessary delays in the notary signing and the schooling of his two children.
Andorran taxation remains one of the most competitive and transparent in the European continent, but it requires strategic anticipation at every administrative stage.
If you want to structure your assets with legal security, let’s analyze your relocation case without obligation and define the right roadmap for you and your family.