---
title: "Andorra capital gains and dividend tax: 2026 rules"
url: https://andorrefiscal.fr/en/tax/dividends-capital-gains
description: "Capital gains and dividends in Andorra: Andorran dividends exempt, savings income at 10% above €3,000, your home exempt after 10 years."
updated: 2026-10-11
language: en
publisher: Andorre Fiscal (https://andorrefiscal.fr)
---

# Dividends, savings and capital gains: tax in Andorra

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

In Andorra, interest, foreign dividends and capital gains make up the savings tax base, taxed at 10% above €3,000 a year. Dividends from Andorran companies are exempt, as are many capital gains on securities, while property follows its own rules. Here are the details, for residents and non-residents alike.

By [the Andorre Fiscal editorial team](https://andorrefiscal.fr/en/about#redaction) · Verified on 11 October 2026 · [6 official sources](https://andorrefiscal.fr/en/tax/dividends-capital-gains#sources)

- **€3,000** annual allowance on savings income
- **10%** above that, with no 5% band
- **Exempt** dividends from Andorran companies
- **10 years** of ownership: no tax on a property gain (resident)

## Key points

- Savings income (interest, foreign dividends, capital gains) is taxed at 10% above €3,000 a year.
- Dividends from Andorran companies are exempt; foreign dividends give entitlement to a deduction for tax paid abroad.
- Capital gains on securities are exempt if the holding did not exceed 25% in the year before the sale, or if the securities have been held for at least 10 years, except for companies whose assets consist mainly of Andorran property.
- The resale of an Andorran property by a resident is taxed at 20% down to 0% depending on how long it has been held, and is no longer taxed after 10 years.
- A non-resident pays 25%, 20% or 15% on their capital gain on property, and the buyer withholds 5% of the price.

## How is savings income taxed in Andorra?

For a tax resident, income from movable capital (interest, dividends, investment income) and capital gains make up the [savings tax base](https://andorrefiscal.fr/en/glossary#base-epargne). It is taxed separately from salaries and pensions, according to a simple rule:

- **allowance a yearon all savings income**: €3,000
- **above thatsingle rate**: 10%
- **5% bandunlike earned income**: None

The €24,000 personal allowance and the income tax credit (the bonificació) do not apply to savings income. Banks withhold tax on the income they pay out; form 345 lets you ask them to take the allowance into account, provided that you settle the difference in your tax return if your income exceeds it. How the tax works in general is explained in our guide to [Andorran income tax (IRPF)](https://andorrefiscal.fr/en/tax/andorra-income-tax), and the profile guide [living off your investments in Andorra](https://andorrefiscal.fr/en/profiles/investor) brings together the points that matter for financial wealth.

## Tax on dividends in Andorra: Andorran dividends exempt, foreign dividends taxed

Dividends paid by an Andorran company subject to corporate income tax are **exempt**, as are distributions by collective investment undertakings governed by Andorran law that are subject to that tax. The profit distributed has already borne corporate income tax at 10%.

> “The following income is exempt from the tax: […] j) dividends and other income derived from participation in equity […] when paid by entities resident for tax purposes in Andorra or by collective investment undertakings governed by Andorran law, provided that they are subject to Andorran corporate income tax.”
>
> — [Llei 5/2014 on personal income tax, Article 5, j) (free translation)](https://www.portaljuridicandorra.ad/L2014005)

Dividends from foreign companies are taxed at 10% in the savings tax base. If tax was withheld in the company’s country, a deduction avoids double taxation: it is equal to the lower of two amounts, the tax paid abroad or the Andorran tax corresponding to those dividends.

> **Example: A foreign-source dividend**
>
> A resident receives €20,000 of dividends from a foreign company, with no other savings income. Taxable base: 20,000 − 3,000 = €17,000, i.e. €1,700 of Andorran tax. Suppose tax of 15% is withheld in the company’s country, i.e. €3,000: this is the [withholding cap on French dividends](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty#placements) laid down by the France–Andorra treaty for an individual. The deduction is limited to the Andorran tax, €1,700: there is nothing left to pay in Andorra, but the excess withholding cannot be recovered in Andorra. Indicative calculation.

## Interest and investment income

Interest on accounts, deposits or bonds is taxed at 10% above the €3,000 allowance, which is shared with the other savings income. Interest on Andorran public debt is exempt.

For French-source interest, [the treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty#placements) limits the tax levied in France to 5% of the gross amount, and Andorra deducts this tax from its own, up to the amount of the Andorran tax. Some interest is taxable only in Andorra, for example interest paid by the French State or by one financial institution to another.

## Capital gains on shares, funds and trading: often exempt

The sale of company shares is exempt in two cases:

- your holding, together with that of your spouse or partner, your family up to the third degree and the entities related to you, did not exceed **25%** of the capital, equity, profits or voting rights during the **12 months** before the sale;
- or you have held the shares sold for at least **10 years**, whatever the size of your holding.

Capital gains on units in investment funds benefit from the same exemption. One important exception: no exemption applies to shares in companies at least 50% of whose assets consist, directly or indirectly, of real property located in Andorra. Outside these cases, the gain is taxed at 10% in the savings tax base.

These conditions do not take into account how often you trade: an individual who frequently buys and sells listed shares, with small holdings, in principle meets the first one. If trading takes the form of a genuine professional activity, have its tax treatment checked by a professional.

Under the treaty, the gain from a substantial holding, i.e. 25% or more of a company’s profits, is taxable in the State where the company is resident: an Andorran resident who sells such a holding in a French company can therefore be taxed in France. Other capital gains on securities are taxable only in the seller’s State of residence. See our guide to the [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty).

**Cryptocurrencies.** These are not company shares: the exemption above does not cover them. For a resident, the gain on their disposal in principle counts as a capital gain, taxed in the savings tax base; their regime is presented in our guide to [cryptocurrency taxation in Andorra](https://andorrefiscal.fr/en/tax/cryptocurrency-tax).

> **Caution: Before leaving France with a large portfolio**
>
> Someone who has been a French tax resident for at least 6 of the last 10 years and who holds at least 50% of the profits of a company or a securities portfolio worth more than €800,000 may be subject to the French exit tax on their unrealised gains when they leave; securities held in a PEA (French equity savings plan) are excluded. See [the French exit tax when moving to Andorra](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency#exit-tax).

## Capital gains on property in Andorra: from 20% to 0% after 10 years (residents)

A resident who sells a property located in Andorra pays **10%** on the capital gain, in the savings tax base, plus a [speculative surcharge](https://andorrefiscal.fr/en/glossary#surtaxe-speculative) of **10%** within 2 years of ownership and of **5%** between 2 and 5 years. Between 6 and 10 years, the gain is reduced by a coefficient of 0.8, then 0.6, 0.4 and 0.2; after **10 years**, it is no longer taxed. Since 1 January 2024, this regime has replaced the former specific tax on capital gains on property.

**Capital gains on property for a resident: effective rates**

| Holding period | Effective rate |
| --- | --- |
| Less than 2 years | 20% |
| From 2 to 5 years | 15% |
| From 5 to 6 years | 10% |
| From 6 to 7 years | 8% |
| From 7 to 8 years | 6% |
| From 8 to 9 years | 4% |
| From 9 to 10 years | 2% |
| More than 10 years | **0%** |

Indicative calculation: 10% income tax plus the surcharge, applied to the gain as reduced by the coefficient where applicable. Excluding the annual €3,000 allowance of the savings tax base.

The seller makes a payment on account of **10%** of the gain at the time of the sale: at the same time as the notarial deed, or within 30 days of a private contract. If the property has been let, the depreciation deducted from the rents reduces the acquisition price used.

> **Example: The example from the official IRPF guide**
>
> A property bought for €275,000 in January 2019, let since then, with €25,000 of depreciation deducted, is sold for €350,000 in October 2025. Acquisition price used: €250,000. Capital gain: €100,000, reduced by the coefficient of 0.8 (6 years and 9 months of ownership) to €80,000, taxed in the savings tax base. Example taken from the Govern’s practical guide to IRPF 2025.

The gain on a main residence is exempt if the price is reinvested, within one year, in a new main residence in Andorra: this advantage is reserved for Andorran nationals and for foreigners who can show 5 years of legal residence. For purchase costs, see [Buying property in Andorra](https://andorrefiscal.fr/en/living-in-andorra/buying-property).

## Capital gains on property for a non-resident

A non-resident who sells a property located in Andorra is subject to non-resident income tax ([IRNR](https://andorrefiscal.fr/en/glossary#irnr)), at higher rates:

**Capital gains on property for a non-resident**

| Holding period | Rate |
| --- | --- |
| Less than 2 years | 25% |
| From 2 to 5 years | 20% |
| From 5 to 10 years | 15% |

Article 29 of Llei 94/2010, as amended by Llei 5/2025.

The buyer must withhold **5%** of the total price and pay it to the tax authority; this withholding is then credited against the tax due from the seller. Beyond 10 years of ownership, the law does not set a specific rate in the list in Article 29: have this case checked by a professional before the sale.

For a seller resident in France, the treaty allows Andorra, where the property is located, to tax the gain. France can also tax it, granting a credit equal to the Andorran tax, up to the amount of the corresponding French tax.

## Investments and assets kept in France, passing on wealth

An Andorran resident who sells a property located outside Andorra is not taxed in Andorra on the gain if they have owned it for at least 10 years; otherwise, the gain goes into the savings tax base, at 10%. For a property located in France, the treaty allows France to tax the gain under its own rules; Andorra then deducts the French tax from its own, up to the amount of the Andorran tax.

Financial investments kept in France follow the rules set out above: their dividends and interest go into the Andorran savings tax base, and any tax withheld in France, capped by the treaty, is credited against Andorran tax. The gains on a life insurance policy are also savings income for an Andorran resident (see the specific question below).

Passing on wealth is outside the scope of income tax: inheritances, legacies and gifts are not taxed in the hands of the beneficiary, and the deceased’s gain is exempt. A gift to someone who is not a close relative can, however, give rise to a taxable capital gain for the donor, and a gift of real property to a third party remains subject to property transfer tax. France, for its part, can tax assets located in France and heirs domiciled there: see our guide to [France–Andorra inheritance tax](https://andorrefiscal.fr/en/tax/inheritance-tax-france-andorra).

## Common misconceptions about savings income and capital gains

> **Common misconception**
>
> “There is no tax on dividends in Andorra.”
>
> **In fact.** Only dividends from Andorran companies are exempt. Foreign dividends are taxed at 10% above the €3,000 allowance, with a deduction for tax paid abroad.

> **Common misconception**
>
> “Capital gains on property are taxed at 15% in the first year, then on a sliding scale.”
>
> **In fact.** That was the former tax on capital gains on property, repealed with effect from 1 January 2024. Today, a resident pays 10% plus a surcharge of 10 or 5% within 5 years, a tapering rate between 6 and 10 years, then nothing. A non-resident pays 25, 20 or 15%.

## Frequently asked questions

### Is an Andorran resident taxed on a dividend paid by a French company?

Yes. The dividend goes into the savings tax base, taxed at 10% above €3,000 a year. The tax withheld in France, which the treaty caps at 15% for an individual, is deducted from Andorran tax, up to the amount of the Andorran tax.

### Is the sale of listed shares taxed in Andorra?

Generally not for a small shareholder: the gain is exempt if your holding, together with your close family and related entities, did not exceed 25% of the company during the 12 months before the sale. It is also exempt above 25% if you have held the shares for at least 10 years, except for companies at least half of whose assets consist of real property located in Andorra.

### How much does a resident pay when selling their flat after 3 years?

15% of the capital gain: 10% income tax in the savings tax base and a 5% surcharge for a sale taking place between 2 and 5 years after the purchase. A payment on account of 10% of the gain is made at the time of the sale. Indicative calculation, excluding the annual €3,000 allowance.

### Is tax withheld when a non-resident sells a property in Andorra?

Yes. The buyer withholds 5% of the total price and pays it to the Andorran tax authority. This amount is then credited against the tax due from the seller on their capital gain, i.e. 25%, 20% or 15% depending on how long the property was held.

### Is interest on an account or a deposit exempt up to €3,000?

The €3,000 allowance applies once a year to the whole savings tax base: interest, taxable dividends and capital gains combined. Above that, the rate is 10%. Interest on Andorran public debt is exempt.

### Is my French life insurance taxed in Andorra?

For a resident, in principle yes, on the gains: Andorran law classes income from life insurance contracts as income from movable capital (Article 22.3 of Llei 5/2014), taxed in the savings tax base at 10% above €3,000 a year. On a surrender, the income is the difference between the sum received and the corresponding premiums. Sums received by a beneficiary other than the policyholder are not subject to income tax (Article 4.4). Tax levied in France is deducted up to the amount of the Andorran tax; the French tax treatment of the policy should be checked with the insurer.

### Is inheriting a securities portfolio taxed in Andorra?

No. Inheritances and legacies are not subject to income tax, and the deceased’s unrealised gain is exempt. France, on the other hand, can tax the heir, in particular if they have been domiciled there for at least 6 of the last 10 years.

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

## Sources

1. [Llei 5/2014 on personal income tax, consolidated version](https://www.portaljuridicandorra.ad/L2014005) — Savings tax base (art. 4.3), life insurance (art. 4.4 and 22.3), capital gains (art. 24), €3,000 allowance (art. 37), exemptions (art. 5), capital gains on property (art. 27 bis, DA 9a), foreign tax credit (art. 48).
2. [Govern d’Andorra: practical guide to IRPF (2025 tax year)](https://www.govern.ad/documents/d/guest/guia_irpf) — Speculative surcharge, 10% payment on account, form 345, example of a capital gain on property.
3. [Llei 94/2010 on non-resident income tax](https://www.portaljuridicandorra.ad/L2010094) — Rates of 25, 20 and 15% (art. 29), 5% withholding by the buyer (art. 35.5), exemptions (art. 15).
4. [France–Andorra tax treaty, consolidated version with the multilateral instrument](https://www.impots.gouv.fr/sites/default/files/media/10_conventions/andorre/version-consolidee-de-la-convention-avec-andorre-modifiee-par-la-convention-multilaterale.pdf) — Articles 10, 11, 13 and 21: dividends, interest, capital gains, elimination of double taxation.
5. [French General Tax Code, Article 750 ter (Légifrance)](https://www.legifrance.gouv.fr/codes/id/LEGISCTA000006197407/) — French inheritance tax: assets located in France and heirs domiciled in France.
6. [impots.gouv.fr: notes to return 2074-ETD (2026 edition)](https://www.impots.gouv.fr/sites/default/files/formulaires/2074-etd/2026/2074-etd_5518.pdf) — French exit tax: holding of at least 50% or portfolio of more than €800,000; securities held in a PEA excluded.

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

- [Income tax (IRPF)](https://andorrefiscal.fr/en/tax/andorra-income-tax): The 0, 5 and 10% scale, allowances, calculation
- [Cryptocurrencies](https://andorrefiscal.fr/en/tax/cryptocurrency-tax): Capital gains, trading, leaving France
- [Investor, private income](https://andorrefiscal.fr/en/profiles/investor): Assets, dividends, rents
- [Buying property](https://andorrefiscal.fr/en/living-in-andorra/buying-property): Authorisation and taxes for foreigners
- [France–Andorra tax treaty](https://andorrefiscal.fr/en/tax/france-andorra-tax-treaty): Who taxes what, since 2013
- [Leaving France for tax purposes](https://andorrefiscal.fr/en/tax/leaving-france-tax-residency): Year of departure, tax returns, exit tax