Andorra Inheritance & Gift Tax Guide: No Inheritance Tax, No Gift Tax 2026
Andorra does not impose inheritance tax, gift tax, or estate tax. These taxes were abolished in 2016. Assets transferred to heirs through inheritance or to recipients through gifts are entirely tax-free. Here is how inheritance and gift rules work in 2026.
Andorra abolished inheritance and gift tax in 2016, making it one of the most attractive European jurisdictions for wealth transfer and estate planning. By comparison, many European countries impose significant inheritance taxes: France up to 60% (between non-relatives), Spain up to 81.6% (varies by region), Germany up to 50%, the UK 40% (inheritance tax above £325,000), and Italy 4-8%. Andorra's zero inheritance/gift tax applies regardless of the relationship between the parties. Wealth tax guide →
Real-world example: A parent transfers property worth €1,000,000 to their child as a gift. Tax: €0. An individual inherits a portfolio of Andorran shares worth €500,000. Tax: €0. Compare this to Spain where a child inheriting the same amount from a parent would pay inheritance tax at progressive rates (depending on the autonomous region) — typically €150,000-€300,000. In France, the same inheritance would incur tax of approximately €180,000 after allowances. Property transfer costs →
Inheritance Tax
- Rate: 0% — Andorra abolished inheritance tax in 2016, no inheritance tax on any amount
- Scope: Applies to both movables (cash, shares, securities) and immovables (real estate)
- Relationship: No distinction — spouses, children, parents, siblings, and unrelated beneficiaries all pay 0%
- Residency: Both residents and non-residents inheriting Andorran assets pay 0%
- Filing: No inheritance tax return required
While there is no inheritance tax, heirs must register the transfer of assets (particularly real estate) with the relevant authorities. Notary fees and registration fees apply for property transfers — these are transaction costs, not taxes.
Gift Tax
- Rate: 0% — Andorra abolished gift tax in 2016, no gift tax on any amount
- Scope: Applies to cash, real estate, shares, and other assets
- Relationship: No distinction between related and unrelated donors/recipients
- Annual limit: No annual gift tax exemption because there is no gift tax
- Filing: No gift tax return required
While gifts themselves are not taxed, the donor should consider capital gains implications if the gifted asset has appreciated (for assets within the 3-year CGT window). The recipient takes the donor's cost basis for future CGT calculations.
Estate Tax
Andorra does not impose an estate tax (a tax on the estate itself before distribution). There is no estate tax return, no estate tax filing requirement, and no estate tax payment obligation. The complete absence of estate, inheritance, and gift taxes makes Andorra one of the most tax-efficient jurisdictions for cross-generational wealth transfer in Europe.
Related Costs
- Notary fees: Required for legalizing inheritance and gift transfers, typically 0.3-0.5% of asset value
- Property registration: Fees for registering inherited or gifted property with the land registry
- Legal fees: Costs for lawyers to handle probate or gift documentation
Is there any tax on assets I inherit from abroad?
No. If you are an Andorran resident inheriting assets from abroad, Andorra does not impose inheritance tax on the assets received. However, the country where the deceased was resident or where the assets are located may impose its own inheritance or estate tax.
Do I need to report gifts or inheritances to the tax authorities?
Generally, no. There is no tax return requirement for gifts or inheritances. However, if you receive a significant gift or inheritance that generates income (e.g., rental property, dividend-paying shares), the income from those assets is taxable at standard rates.