Andorra Wealth Tax Guide: No Wealth Tax, No Net Worth Tax 2026
Andorra does not impose any form of wealth tax, net worth tax, or solidarity tax on individuals or companies. There is no annual tax on total assets, financial wealth, or high net worth. This makes Andorra one of the most attractive European jurisdictions for wealth preservation. Here is how wealth taxation works in 2026.
Unlike several European countries that levy annual wealth taxes (Spain, France, Norway, Switzerland, Netherlands), Andorra has never introduced a recurring wealth-based tax. There is no tax on net worth, no tax on financial assets, no tax on bank deposits, and no tax on investment portfolios. This policy aligns with Andorra's strategy to attract high-net-worth individuals. The inheritance and gift tax was also abolished in 2016. No inheritance or gift tax →
Real-world example: An individual with net worth of €5,000,000 (cash, shares, real estate, businesses) in Andorra pays €0 in wealth tax. In Spain, the same net worth would trigger wealth tax at progressive rates up to 3.5% (net worth above €700,000) = approximately €100,000-€150,000 per year. In France, the IFI (real estate wealth tax) up to 1.5% on real estate above €1.3M would apply. Over 10 years, the Andorra-based individual saves potentially €1M+ in wealth tax. Personal income tax →
What Andorra Does Not Tax
- Net worth: No annual tax on total assets minus liabilities
- Financial assets: No tax on shares, bonds, mutual funds, ETFs, or other securities held
- Bank deposits: No tax on cash held in bank accounts
- Real estate holdings: Only IBI (0.1-0.5% cadastral value) applies — no wealth tax on property value
- Business assets: No tax on company shares, partnership interests, or business ownership
- Luxury assets: No tax on art, jewelry, vehicles, yachts, or other luxury goods
Taxes That Do Apply to Asset Owners
While there is no wealth tax, asset owners face some related taxes:
- Income tax on investment returns: Dividends (0%), interest (10%), and rental income (0-10%) are taxed
- Capital gains tax on real estate: 10% on gains from property sold within 3 years (0% after 3 years)
- Property transfer tax (ITP): 1.5-2% one-time tax on purchase
- Annual property tax (IBI): 0.1-0.5% of cadastral value per year
- IGI on consumption: 4.5% standard rate on goods and services
Comparison with Wealth Tax Countries
- Andorra: 0% wealth tax, 0% net worth tax
- Spain: Wealth tax up to 3.5% on net worth above €700K (varies by region)
- France: IFI up to 1.5% on real estate assets above €1.3M
- Norway: 1.1% on net worth above NOK 1.7M
- Switzerland: Cantonal rates 0.2-1% on net worth (varies by canton)
- Netherlands: Notional return tax on savings and investments (effective ~1.7% on assets above ~€50K)
- Italy: 0.2% on foreign financial assets, 0.76% on real estate abroad
Could Andorra introduce a wealth tax in the future?
As of 2026, there is no legislative proposal or public discussion about introducing a wealth tax in Andorra. The government's tax policy focuses on maintaining competitive rates to attract foreign investment and high-net-worth individuals.
Is there any minimum tax for wealthy individuals?
No. Andorra does not have an alternative minimum tax, a minimum wealth tax, or any deemed income tax for high-net-worth individuals. There is no exit tax for individuals leaving Andorra.