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Andorra IT Sector Tax Guide: CIT 10%, Digital Nomad Visa 2026

Andorra offers one of Europe's most attractive tax environments for IT professionals and tech companies — CIT at just 10%, a territorial tax system where foreign income is generally tax-free, a digital nomad visa, and simplified self-employed registration. Here is how the IT sector is taxed in 2026.

Andorra has positioned itself as a destination for tech talent and digital entrepreneurs. The combination of low CIT (10%), the territorial tax system (foreign-source income generally not taxed), low PIT rates (0-10%), and the digital nomad visa creates a compelling proposition. Compared to Spain (CIT 25%, PIT up to 47%, worldwide taxation) or France (CIT 25%, PIT up to 45%), Andorra offers significant tax savings for IT professionals and companies. General corporate tax rates →

Real-world example: A freelance software developer earning €100,000/year working remotely for a US company from Andorra. Under the territorial system, the foreign-source income is generally not taxed in Andorra. If classified as Andorran-source, PIT at 0-10% = maximum €10,000. Compare to Spain: progressive PIT up to 47% = approximately €37,000-€44,000. An IT company with €200,000 profit pays CIT at 10% = €20,000, compared to 25% = €50,000 in Spain. Personal income tax →

Low Corporate Tax Rate

  • CIT rate: 10% — one of the lowest in Europe for all companies including IT businesses
  • Minimum tax: 1.5% minimum corporate tax applies
  • Participation exemption: Dividends and capital gains from qualifying shareholdings are exempt
  • No reduced small business rates: But the 10% rate is already competitive

IT companies benefit directly from Andorra's low CIT without needing specific industry exemptions. The 10% rate applies to software development, IT consulting, SaaS businesses, and all tech services.

Territorial System for Remote Workers

Andorra's territorial tax system generally taxes only Andorran-source income. For remote IT workers earning income from foreign clients or employers:

  • Foreign employment income: Income from work performed physically outside Andorra may not be taxable
  • Foreign business income: IT freelancers serving foreign clients may benefit from territorial treatment
  • Important: Work physically performed in Andorra for foreign clients may still be considered Andorran-source income
  • Tax planning: Professional advice is essential to structure activities correctly under the territorial system

Digital Nomad Visa

Andorra offers a digital nomad visa allowing remote workers to reside in Andorra. Key features include:

  • Eligibility: Remote workers and freelancers earning income from outside Andorra
  • Duration: Initially 1 year, renewable
  • Tax treatment: Digital nomads may benefit from special tax regimes or standard PIT rates
  • Family inclusion: Family members can be included in the application
  • Residency pathway: Can lead to permanent residency

Self-Employed Regime

IT freelancers and self-employed professionals can register under Andorra's simplified regime:

  • Registration: Simplified process through the Departament de Tributs i Fronteres
  • Taxation: Income taxed at progressive PIT rates (0-10%) with the €24,000 tax-free threshold
  • CASS contributions: Self-employed individuals pay CASS contributions at reduced rates
  • IGI (VAT): Below the registration threshold, no IGI applies; optional registration available

Tech Ecosystem and Quality of Life

Beyond tax advantages, Andorra offers IT professionals and companies:

  • High-speed internet: Excellent fibre optic infrastructure suitable for remote work
  • Safety: One of the safest countries in the world with very low crime rates
  • Skiing and outdoors: World-class skiing, hiking, and mountain sports
  • Low crime: Safe environment for families and businesses
  • EU proximity: Located between Spain and France with easy access to Barcelona and Toulouse

What IT activities qualify for the low CIT rate?

All IT activities qualify for the standard 10% CIT — software development, IT consulting, web/mobile development, cybersecurity, cloud services, data analytics, AI/ML, blockchain, and game development. Andorra does not require specific industry classification for the standard rate.

Can I register as self-employed in Andorra remotely?

The registration process requires physical presence in Andorra to obtain a tax identification number (NRT) and open a bank account. Once registered, ongoing compliance can be managed online through the tax portal.