Andorra Capital Gains Tax Guide: 10% Real Estate, 0% Shares 2026
Andorra imposes capital gains tax (CGT) primarily on real estate transactions. Gains from the sale of real estate are taxed at 10% if sold within 3 years of acquisition. After 3 years, the gain is generally tax-free. Capital gains on shares and securities are taxed at 0%. Here is how Andorran capital gains tax works in 2026.
Capital gains taxation in Andorra is administered by the Ministeri de Finances — Departament de Tributs i Fronteres. The system discourages short-term property speculation while encouraging long-term investment. Andorra's CGT regime is very favourable compared to regional peers: Spain taxes real estate gains at 19-26% (sliding), France at 19% + 17.2% social charges, and Portugal at 28% (flat) or 14.5-48% (progressive). Property tax guide →
Real-world example: An individual buys an apartment in Andorra la Vella for €300,000 and sells it 2 years later for €400,000. Gain: €100,000. CGT at 10% = €10,000. If sold after 3 years, CGT = €0. For a company selling the same property, the gain is treated as ordinary income and taxed at the standard CIT rate of 10%. Compare to Spain where the same gain would incur up to 26% CGT = €26,000 even after 3 years. Corporate tax rates →
Capital Gains Tax Rates
- Real estate (within 3 years): 10% on the gain (sale price minus purchase price and allowable costs)
- Real estate (after 3 years): 0% — gain is fully exempt from CGT (holding period exemption)
- Shares and securities: 0% — gains on sale of shares, bonds, and other financial instruments are tax-free
- Cryptocurrency: Treated as either CGT or business income depending on trading frequency and intent
- Business assets: Gains on disposal of business assets are treated as ordinary income and taxed at CIT rates
The 3-year holding period for real estate is calculated from the date of notarial acquisition to the date of notarial sale.
Calculating the Gain
The taxable gain on real estate is calculated as:
- Sale price: The price stated in the notarial sale contract
- Minus purchase price: The price paid at acquisition (as per notarial deed)
- Minus allowable costs: Notary fees, registration fees, agent commissions, and capital improvements
- Equals taxable gain: Subject to 10% CGT (if within 3 years)
If the sale price is lower than the purchase price (a loss), no CGT is due. Capital losses cannot generally be offset against other income.
Exemptions and Reliefs
- Primary residence: Gains from the sale of a primary residence may be exempt if conditions are met
- Inheritance and gift: No CGT on property received through inheritance or gift (no inheritance/gift tax applies)
- Reinvestment relief: If proceeds from a property sale are reinvested in another primary residence, CGT may be deferred
Exemptions require documentation and may need prior approval from the tax authorities.
Do non-residents pay CGT in Andorra?
Yes. Non-residents selling Andorran real estate are subject to the same CGT rules as residents. The 10% rate applies if sold within 3 years. After 3 years, 0%. The buyer's notary typically withholds the CGT and remits it to the tax authority at the time of sale.
Is CGT on shares really 0%?
Yes. Andorra does not tax capital gains on the sale of shares, bonds, or other securities for either residents or non-residents. This applies to both listed and unlisted securities.
How is CGT collected?
For real estate transactions, the CGT is typically withheld by the notary public at the time of sale and remitted to the tax authority. The tax must be paid before the transfer is registered.