Can Andorra be considered a tax haven by France?

No. Since the signing of the double taxation convention in 2013 and Andorra joining the OECD Common Reporting Standard (CRS), Andorra is no longer on the French list of non-cooperative states or territories (ETNC). It fully cooperates with international tax authorities on information exchange. Moving to Andorra is therefore a perfectly legal and transparent operation, provided you genuinely establish your fiscal domicile there.

What happens to my income from France when I am an Andorran resident?

The Franco-Andorran convention distributes taxing rights between the two countries depending on the nature of income. Rental income from French properties remains taxable in France. Employment income from a French source may be taxable in France or Andorra depending on the location of the activity. Dividends and capital gains from French companies are generally taxable in Andorra at the 10% rate, with a tax credit to avoid double taxation. Oryzon analyses each source of income individually to optimise your overall situation.

Is there social security in Andorra?

Yes, Andorra has a complete social security system (CASS - Caixa Andorrana de Seguretat Social) which covers health, retirement and work-related accidents. Contributions are lower than in France or Spain: employer contribution is 15.5% and employee contribution is 6.5% of gross salary. European health insurance remains valid in Andorra for EU citizens. For retirees, an agreement between Andorra and France allows in certain cases to maintain French healthcare cover while residing in Andorra.

Tax Advice

The Andorran tax system is notable for its simplicity, transparency, and moderate rates, while being fully compliant with international standards. Often perceived as attractive, Andorran taxation is based above all on precise rules that apply to both individuals and entrepreneurs.

Before moving abroad or setting up a company, it is essential to understand how taxation actually works in Andorra, which taxes apply to your situation, and under what conditions you become a tax resident.

The main Taxes in Andorra

Personal income tax: Progressive rate capped at 10% (from 0% up to €24,000, 5% between €24,000 and €40,000, and 10% above that amount)
Corporate income tax: Maximum rate of 10% on profits
IGI (equivalent to VAT): Standard rate of 4.5%, one of the lowest in Europe
Dividends: 0%
Capital gains on securities: 0%
No wealth tax (ISF)
No inheritance tax
Social security contributions via the CASS: low compared to other European countries and offers an effective protection system.

Why Optimize your Andorran Tax situation with Oryzon?

While Andorran taxation is attractive, it requires a detailed analysis of your personal and professional situation. Choosing the wrong status, failing to plan ahead, or misinterpreting the rules can have significant tax consequences.

At Oryzon, we support you in:

Determine your tax residence,
Structure your income and business activities,
Secure your position with regard to Andorran and foreign authorities,
Anticipate short- and long-term tax implications.

👉 For a successful and compliant installation, personalized support is essential.

Tax Optimisation in Andorra: A Favourable Legal Framework

Andorra has one of the most competitive tax systems in Europe while remaining fully compliant with international standards on tax transparency. Unlike traditional tax havens, Andorra is a recognised cooperative state that has signed numerous tax information exchange agreements and double taxation conventions. This makes it a stable, credible and sustainable choice for individuals and businesses seeking to legally optimise their tax situation.

Personal Income Tax (IRPF)

Personal income tax in Andorra is structured in two brackets: 0% for income up to €24,000 per year, and a maximum rate of 10% on the portion exceeding this threshold. This system makes Andorra particularly attractive compared to France (marginal rate of 45%) or Spain (up to 47%). For a high-income individual, the tax saving can reach several tens of thousands of euros per year.

Additionally, dividends received from Andorran companies are exempt from tax when the shareholder holds more than 25% of the capital and the company has been held for at least 10 years. Capital gains from the sale of shares are taxed at only 10%. There is no wealth tax and no inheritance tax between direct relatives (parents, children, siblings), which makes estate planning in Andorra particularly advantageous.

Corporate Income Tax (IS)

The corporate tax rate in Andorra is 10% on taxable profits. This rate is among the lowest in Europe for a non-offshore and fully regulated jurisdiction. Andorran companies benefit from numerous deductions and exemptions: R&D costs are deductible at 150%, new business equipment at 35%, and companies created ex-nihilo benefit from a total exemption for the first two years of operation.

The Franco-Andorran Tax Convention

Andorra signed a double taxation convention with France in 2013, which came into force in 2015. This convention is fundamental for French nationals wishing to establish their fiscal residency in Andorra, as it defines which state has the right to tax different categories of income (professional income, real estate income, pensions, capital gains, etc.). Oryzon has in-depth expertise in the application of this convention and helps you optimise your situation taking into account your ties and income sources in France.

A common and important point: the mere fact of obtaining Andorran residency is not sufficient to break your French tax domicile. The French tax administration applies strict criteria (main place of residence, centre of economic interests, professional activity) to determine whether an individual is truly a non-resident of France. Oryzon guides you in implementing the necessary measures to consolidate your Andorran tax domicile and avoid any conflict with the French administration.

Our Tax Advisory Services

Oryzon provides personalised tax advisory services covering all aspects of your expatriation to Andorra. Our experts, with a thorough knowledge of both Andorran and French/Spanish tax law, assist you in:

Tax audit: complete analysis of your current tax situation and identification of optimisation opportunities
Migration strategy: development of a personalised roadmap for your transition to Andorran tax residency
Exit tax: advice on managing exit tax when leaving France (applicable to unrealised capital gains on company shares)
Estate planning: optimisation of asset transmission in an Andorran context
Ongoing compliance: annual support for your tax declarations in Andorra
Interface with French/Spanish administration: management of potential disputes and correspondence with tax authorities

Frequently Asked Questions

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