---
title: "Andorra vs France taxes: a tax-by-tax comparison (2026)"
url: https://andorrefiscal.fr/en/tax/andorra-vs-france-taxes
description: "Andorra vs France taxes in 2026: income (0–10% vs 0–45%), dividends, companies (10% vs 25%), VAT, social charges, wealth, inheritance."
updated: 2026-10-11
language: en
publisher: Andorre Fiscal (https://andorrefiscal.fr)
---

# Andorra vs France taxes: the comparison

> Markdown version of the page https://andorrefiscal.fr/en/tax/andorra-vs-france-taxes (Andorre Fiscal), up to date as of 11 October 2026. To cite this page, use its address: https://andorrefiscal.fr/en/tax/andorra-vs-france-taxes

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.

By [the Andorre Fiscal editorial team](https://andorrefiscal.fr/en/about#redaction) · Verified on 11 October 2026 · [8 official sources](https://andorrefiscal.fr/en/tax/andorra-vs-france-taxes#sources)

- **10% / 45%** Andorra / France: income tax, top rate
- **10% / 25%** Andorra / France: corporate income tax, standard rate
- **4.5% / 20%** Andorra / France: VAT, general rate
- **0% / 60%** Andorra / France: inheritance tax, top rate

## 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.

## 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:

**The main taxes at 10 October 2026**

| Tax | Andorra | France |
| --- | --- | --- |
| Income tax (earned income)[The guide: income tax scale](https://andorrefiscal.fr/en/tax/andorra-income-tax) | 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 income[The guide: dividends and capital gains](https://andorrefiscal.fr/en/tax/dividends-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 tax[The guide: corporate income tax](https://andorrefiscal.fr/en/tax/andorra-corporate-tax) | 10%, with a floor of 30% of gross tax | 25%; 15% up to €42,500 of profit for certain SMEs |
| VAT[The guide: VAT in Andorra (IGI)](https://andorrefiscal.fr/en/tax/andorra-vat-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 salary[The guide: CASS contributions](https://andorrefiscal.fr/en/tax/social-security-cass) | 22% in total: 6.5% employee, 15.5% employer | Many contributions and levies, depending on status and salary level |
| Wealth[The guide: taxes in Andorra](https://andorrefiscal.fr/en/tax/andorra-tax-system#patrimoine) | **No tax** | Tax on real estate wealth (IFI) above €1,300,000 of net real estate assets |
| Inheritance and gifts[The guide: France–Andorra inheritance](https://andorrefiscal.fr/en/tax/inheritance-tax-france-andorra) | **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 property[The guide: capital gains on property in Andorra](https://andorrefiscal.fr/en/tax/dividends-capital-gains#immobilier-resident) | 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:

**Tax due each year, three profiles**

| 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](https://andorrefiscal.fr/en/tax/andorra-corporate-tax#exemple-100000). 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](https://andorrefiscal.fr/en/tools/france-andorra-tax-comparison).

## 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](https://andorrefiscal.fr/en/tax/andorra-income-tax#exemples)). 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:

## 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](https://andorrefiscal.fr/en/tax/dividends-capital-gains#dividendes) and [the exit tax when leaving France](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#exit-tax).

## 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](https://andorrefiscal.fr/en/tax/andorra-corporate-tax#associe-france) and [Andorran VAT (IGI)](https://andorrefiscal.fr/en/tax/andorra-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](https://andorrefiscal.fr/en/tax/social-security-cass#role).

## 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%](https://bofip.impots.gouv.fr/bofip/11319-PGP.html/identifiant=BOI-PAT-IFI-40-10-20180608), 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%.

> **Caution: What France continues to tax**
>
> Moving to Andorra does not put all your wealth out of reach of French tax. A non-resident remains liable for the tax on real estate wealth on their real estate located in France. French inheritance tax applies to assets located in France, as well as to everything received by an heir who has been domiciled in France for at least 6 of the previous 10 years ([Article 750 ter of the French General Tax Code](https://www.legifrance.gouv.fr/codes/id/LEGISCTA000006197407/)). The [2013 tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty) does not cover inheritance: see our guide to [inheritance tax between France and Andorra](https://andorrefiscal.fr/en/tax/inheritance-tax-france-andorra).

## 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](https://andorrefiscal.fr/en/tax/dividends-capital-gains#immobilier-resident). A property located in France, on the other hand, remains taxed in France on resale.

> **Caution: Purchase costs in Andorra**
>
> A purchase in Andorra costs about 4% in property transfer tax (or 4.5% IGI on a new build) and, for a non-resident or a new resident, 6% or 10% foreign investment tax. See [Buying property in Andorra](https://andorrefiscal.fr/en/living-in-andorra/buying-property).

## 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](https://andorrefiscal.fr/en/residency/costs-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](https://andorrefiscal.fr/en/living-in-andorra/cost-of-living);
- 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](https://andorrefiscal.fr/en/residency/cross-border-worker));
- 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.

> **Common misconception**
>
> “If you move to Andorra, you no longer pay tax in France.”
>
> **In fact.** A non-resident remains taxable in France on the French-source income that the treaty allocates to France, and on their French real estate under the tax on real estate wealth. Heirs domiciled in France remain subject to French inheritance tax. And without a real departure of your home, your activity and your economic interests, nothing changes: see [the conditions for tax residency in Andorra](https://andorrefiscal.fr/en/tax/tax-residency).

## 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](https://andorrefiscal.fr/en/tools/france-andorra-tax-comparison) 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.

[Read: France–Andorra inheritance](https://andorrefiscal.fr/en/tax/inheritance-tax-france-andorra)

### 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](https://andorrefiscal.fr/en/tax/andorra-corporate-tax#associe-france)

## Sources

1. [Service-public.gouv.fr: income tax scale](https://www.service-public.gouv.fr/particuliers/vosdroits/F1419) — Bands from 0% to 45% applicable to 2025 income.
2. [impots.gouv.fr: taxation of securities](https://www.impots.gouv.fr/particulier/questions/jai-des-valeurs-mobilieres-comment-sont-elles-imposees) — Levy of 31.4%: 12.8% income tax and 18.6% social levies.
3. [Service-public.gouv.fr: corporate income tax](https://entreprendre.service-public.gouv.fr/vosdroits/F23575) — Standard rate of 25%; reduced rate of 15% up to €42,500 for certain SMEs.
4. [Service-public.gouv.fr: VAT rates](https://entreprendre.service-public.gouv.fr/vosdroits/F23567) — Rates of 20%, 10%, 5.5% and 2.1%.
5. [Service-public.gouv.fr: tax on real estate wealth (IFI)](https://www.service-public.gouv.fr/particuliers/vosdroits/F563) — Threshold of €1,300,000; taxation of non-residents on their real estate in France.
6. [impots.gouv.fr: calculating inheritance tax](https://www.impots.gouv.fr/particulier/questions/comment-dois-je-calculer-les-droits-de-succession) — Scale from 5% to 45% in the direct line, allowance of €100,000, rates of 35 to 60% outside the direct line.
7. [Service-public.gouv.fr: capital gains on property](https://www.service-public.gouv.fr/particuliers/vosdroits/F10864) — 19% tax, 17.2% social levies, exemptions after 22 and 30 years.
8. [Llei 5/2014 on personal income tax (Andorra)](https://www.portaljuridicandorra.ad/L2014005) — Rate 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](https://andorrefiscal.fr/en/methodology).

**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](https://andorrefiscal.fr/en/contact).

## Further reading

- [Taxes in Andorra](https://andorrefiscal.fr/en/tax/andorra-tax-system): Every tax and its rates
- [Leaving France for tax purposes](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency): Year of departure, tax returns, exit tax
- [Costs and AFA deposit](https://andorrefiscal.fr/en/residency/costs-afa-deposit): What each status really costs
- [Cost of living](https://andorrefiscal.fr/en/living-in-andorra/cost-of-living): Taxes, inflation, budget items
- [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty): Who taxes what, since 2013