Tax
Andorra vs France taxes: the comparison
Andorra taxes less than France on most items, but the real difference depends on your situation, your income and what remains taxable in France after you leave. Here are the main taxes side by side, with the official rates of both countries and the nuances that matter.
- Andorra / France: income tax, top rate
- 10% / 45%
- Andorra / France: corporate income tax, standard rate
- 10% / 25%
- Andorra / France: VAT, general rate
- 4.5% / 20%
- Andorra / France: inheritance tax, top rate
- 0% / 60%
Key points
- Income tax: in practice 0, 5 then 10% in Andorra, compared with a scale of 0 to 45% per family quotient share in France.
- Investment income: 10% above €3,000 in Andorra, Andorran dividends exempt, compared with a 31.4% flat-rate levy in France in 2026.
- Companies and consumption: 10% corporate income tax and 4.5% IGI, compared with 25% and 20% VAT in France.
- Neither wealth tax nor inheritance tax in Andorra; but France continues to tax real estate located in France and heirs who live there.
- The comparison does not tell the whole story: cost of residency and housing, income remaining taxable in France, possible exit tax.
On this page 11 sections
- Andorra vs France: the 2026 tax table
- Three worked examples: employee, company director, investor
- Income tax: two different approaches
- Savings and dividends
- Companies and VAT
- Social security contributions
- Wealth, inheritance and gifts
- Capital gains on property
- Beyond the rates: housing, cost of residency, taxes still due in France
- Frequently asked questions
- Sources
Andorra vs France: the 2026 tax table
Tax by tax, the statutory rates of both countries, checked against the official texts and websites; under each tax, the guide that covers it in detail:
| Tax | Andorra | France |
|---|---|---|
| Income tax (earned income)The guide: income tax scale | Statutory rate of 10%; in practice 0% up to €24,000, 5% up to €40,000, 10% above that | Scale of 0%, 11%, 30%, 41% and 45% per family quotient share (2025 income) |
| Investment incomeThe guide: dividends and capital gains | 10% above €3,000 a year; dividends from Andorran companies exempt | Flat-rate levy of 31.4%: 12.8% income tax and 18.6% social levies |
| Corporate income taxThe guide: corporate income tax | 10%, with a floor of 30% of gross tax | 25%; 15% up to €42,500 of profit for certain SMEs |
| VATThe guide: VAT in Andorra (IGI) | IGI of 4.5%; from 0% to 9.5% depending on the goods and services | 20%; 10%, 5.5% and 2.1% depending on the goods and services |
| Contributions on a salaryThe guide: CASS contributions | 22% in total: 6.5% employee, 15.5% employer | Many contributions and levies, depending on status and salary level |
| WealthThe guide: taxes in Andorra | No tax | Tax on real estate wealth (IFI) above €1,300,000 of net real estate assets |
| Inheritance and giftsThe guide: France–Andorra inheritance | No specific tax | From 5% to 45% in the direct line after an allowance of €100,000 per child; up to 60% between unrelated persons |
| Capital gains on propertyThe guide: capital gains on property in Andorra | Resident: 10% plus a surcharge within 5 years, 0% after 10 years | 19% tax and 17.2% social levies; exemption after 22 and 30 years; main residence exempt |
France: service-public.gouv.fr, impots.gouv.fr, BOFiP. Andorra: consolidated laws on the Portal jurídic. Statutory rates, excluding special cases.
Three worked examples: employee, company director, investor
For the same situation, the difference ranges from a few thousand to several tens of thousands of euros a year. Three typical cases, calculated using only the official rates in this comparison:
| Profile | Tax in France | Tax in Andorra | Difference |
|---|---|---|---|
| Employee: €50,000 of taxable income | €8,104 | €1,800 | €6,304 |
| Company director: €100,000 of distributed profit | €45,635 | €10,000 | €35,635 |
| Investor: €40,000 of dividends | €12,560 | €3,700 | €8,860 |
Indicative calculation, single person. Employee: income tax on the same taxable income (2026 scale for 2025 income in France; tax-free allowance and tax credit in Andorra), excluding social security contributions. Company director: corporate income tax then tax on the dividend, SME eligible for the 15% rate in France, shareholder resident in the company’s country. Investor: flat-rate levy of 31.4% in France; in Andorra, dividends from non-Andorran companies taxed at 10% above €3,000, with no foreign withholding tax.
The details of the second case, including the shareholder who stayed in France, are in our guide to corporate income tax in Andorra. These differences are not net savings: the cost of residency, housing and the taxes still due in France must be deducted from them (see below). For your own income, the comparison tool lets you compare your tax on the same income.
Income tax: two different approaches
Andorra exempts a fixed amount and then applies a single rate; France applies a progressive scale to income divided by the number of family quotient shares:
Andorra
A tax-free allowance, then 10%
- Tax-free allowance of €24,000 per taxpayer, raised to €40,000 if their spouse has no income
- Single statutory rate of 10%, reduced by a tax credit (bonificació) capped at €800
- Each dependent child reduces the tax base by €1,000, an amount shared between the two parents if both are entitled to it: at most €100 less tax per child (indicative calculation, at the rate of 10%)
France
A progressive scale per share
- 2025 income: 0% up to €11,600, 11% up to €29,579, 30% up to €84,577, 41% up to €181,917, then 45% above that
- The scale applies to income divided by the number of family quotient shares
- Children increase the number of shares, within limits set each year by the Finance Act
For a gross salary of €60,000, Andorran tax is about €2,230 a year for a single person (indicative calculation detailed in our guide to Andorran income tax). The French calculation depends on family circumstances, allowances and reductions: we do not sum it up in a single figure. The comparison tool does both calculations, with the assumptions shown:
France or Andorra?
Income tax in France and in Andorra on the same taxable income, with every assumption shown.
Savings and dividends
Andorra
10% above €3,000 a year
- Dividends, interest and capital gains on securities, after an allowance of €3,000 a year
- Dividends from Andorran companies exempt
- Many capital gains on securities exempt
France
31.4% flat-rate levy
- In principle, on dividends, interest and capital gains on securities in 2026
- 12.8% income tax
- 18.6% social levies
Two nuances: a French-source dividend bears withholding tax in France, capped by the treaty; and leaving with a large portfolio can trigger the French exit tax. See tax on dividends in Andorra and the exit tax when leaving France.
Companies and VAT
Andorra
10% on profits
- IGI of 4.5% at the general rate
- Dividend paid to a shareholder who is an Andorran tax resident: exempt from income tax
France
25% at the standard rate
- 15% on the first €42,500 of profit for certain SMEs
- VAT of 20% at the standard rate
- Dividend: flat-rate levy of 31.4% in principle
The 15% rate is reserved for SMEs whose turnover does not exceed €10 million and whose fully paid-up capital is at least 75% held by individuals.
These differences assume an activity genuinely carried on in Andorra. An Andorran company without substance, or owned by a resident of France, may fall under French anti-abuse rules: this is an analysis to have validated case by case. See what France can tax in the hands of a shareholder who stayed in France and Andorran VAT (IGI).
Social security contributions
Andorra
22% on a salary
- 6.5% paid by the employee, 15.5% by the employer
- Self-employed: €587.95 a month on the standard base in 2026, less when starting out
France
Depending on status and salary
- Many contributions and levies, whose level depends on status and salary
- We do not sum them up in a single rate, so as not to mislead
What you get in return also matters: the CASS reimburses 75% of consultations and 90% of hospitalisation within the care pathway with a referring GP (33% outside this pathway), based on its own tariffs, hence the frequent use of top-up health insurance. See what CASS contributions pay for.
Wealth, inheritance and gifts
Andorra has neither wealth tax nor inheritance or gift tax. France applies the tax on real estate wealth (IFI) above €1,300,000 of net real estate assets, on a scale from 0.5% to 1.5%, and inheritance tax that depends on the family relationship:
- spouse or civil partner (PACS): exempt;
- direct line: from 5% to 45% after an allowance of €100,000 per child;
- brothers and sisters: 35% then 45%;
- relatives up to the fourth degree: 55%;
- beyond that, or between unrelated persons: 60%.
Capital gains on property
Andorra
10%, then nil after 10 years
- Plus a surcharge of 10% within 2 years, of 5% between 2 and 5 years
- Tapering tax between 6 and 10 years, then nil
France
19% and 17.2% social levies
- Exemption from income tax after 22 years of ownership, from social levies after 30 years
- Additional tax of 2% to 6% above €50,000 of capital gain
- Main residence exempt
The Andorran regime applies to a resident: see the regime for capital gains on property in Andorra. A property located in France, on the other hand, remains taxed in France on resale.
Beyond the rates: housing, cost of residency, taxes still due in France
A comparison of rates is not enough to decide. Before drawing conclusions, factor in:
- the cost of obtaining residency: €50,000 paid to the AFA, non-refundable, for passive or self-employed residency, and €1,000,000 to invest for passive residency; see the cost of residency and the AFA deposit;
- the cost of living, and above all the cost of housing, which is high and scarce: see the cost of living in Andorra;
- the income that remains taxable in France: rents and capital gains from French property, public pensions, salaries for work carried out in France (see working in Andorra and living in France, or the other way round);
- any exit tax on departure, with no automatic deferral for Andorra in the latest official notes;
- the risk of remaining a French tax resident if your home, activity or economic interests stay in France;
- private health insurance, compulsory for a passive resident and common as a top-up to the CASS.
Frequently asked questions
Do you really pay less tax in Andorra than in France?
For most taxes, Andorran rates are lower: 10% at most on income, 10% on companies, 4.5% IGI, neither wealth tax nor inheritance tax. But the real difference depends on your situation: income remaining taxable in France, cost of residency and housing, possible exit tax. The comparison tool lets you put a figure on the income tax difference, with the assumptions shown.
What is the rate of the single flat-rate levy in France in 2026?
31.4%: 12.8% income tax and 18.6% social levies, according to impots.gouv.fr. In Andorra, savings income is taxed at 10% above €3,000 a year, and dividends from Andorran companies are exempt.
Does an Andorran resident pay the French tax on real estate wealth (IFI)?
Yes, if they own real estate in France with a net value of more than €1,300,000: a non-resident is liable to IFI on their real estate assets and rights located in France. Andorra, for its part, has no wealth tax.
Will my children who stayed in France pay inheritance tax if I live in Andorra?
Probably, yes: France taxes what is received by an heir who has been domiciled in France for at least 6 of the 10 years preceding the transfer, as well as assets located in France, whereas Andorra levies no inheritance tax.
Is VAT much lower in Andorra?
At the general rate, Andorran IGI is 4.5%, compared with 20% for French VAT. The reduced rates also differ: 1% compared with 5.5% for sanitary protection, 0% compared with 2.1% for reimbursed medicines. Actual prices, however, also depend on margins and the cost of living.
What is the difference in corporate income tax between Andorra and France?
The standard rate is 10% in Andorra, compared with 25% in France, where eligible SMEs pay 15% on their first €42,500 of profit. For €100,000 of profit distributed in full, the total tax, dividend included, thus falls from €45,635 in France to €10,000 in Andorra (eligible SME, indicative calculation). But this difference assumes an activity genuinely carried on in Andorra; an Andorran company managed from France, or owned by a resident of France, may fall under specific French rules.
Read: Corporate income tax › Shareholder or director still in France: what France can tax
Sources
- Service-public.gouv.fr: income tax scale (opens in a new tab) service-public.gouv.frBands from 0% to 45% applicable to 2025 income.
- impots.gouv.fr: taxation of securities (opens in a new tab) impots.gouv.frLevy of 31.4%: 12.8% income tax and 18.6% social levies.
- Service-public.gouv.fr: corporate income tax (opens in a new tab) entreprendre.service-public.gouv.frStandard rate of 25%; reduced rate of 15% up to €42,500 for certain SMEs.
- Service-public.gouv.fr: VAT rates (opens in a new tab) entreprendre.service-public.gouv.frRates of 20%, 10%, 5.5% and 2.1%.
- Service-public.gouv.fr: tax on real estate wealth (IFI) (opens in a new tab) service-public.gouv.frThreshold of €1,300,000; taxation of non-residents on their real estate in France.
- impots.gouv.fr: calculating inheritance tax (opens in a new tab) impots.gouv.frScale from 5% to 45% in the direct line, allowance of €100,000, rates of 35 to 60% outside the direct line.
- Service-public.gouv.fr: capital gains on property (opens in a new tab) service-public.gouv.fr19% tax, 17.2% social levies, exemptions after 22 and 30 years.
- Llei 5/2014 on personal income tax (Andorra) (opens in a new tab) portaljuridicandorra.adRate of 10%, personal allowance, tax credit (bonificació), savings tax base.
Consolidated texts on the Portal jurídic d’Andorra have no official value: only the version published in the BOPA is authentic. How we verify.
General information, not advice. This guide sets out the rules in force on 11 October 2026, based on official texts. It is no substitute for a professional review of your situation (lawyer, tax adviser, gestoria). Spotted an error or a change? Write to us.
Further reading
