Inheritance tax in Andorra 2026: it does not exist (and this is what changes)

Last updated: May 2026

In Andorra there is no inheritance or gift tax. The Principality does not apply any tax to the gratuitous transfer of assets upon death or by donation between individuals. For an Andorran resident with assets located in Andorra, inheritance is taxed at 0%. This represents one of the greatest tax savings compared to Spain, France, or other Western European countries.

This guide explains exactly how it works, what happens if you have assets in Spain while being a resident of Andorra, and how to plan an efficient transfer of assets from the Principality.

Is there an inheritance tax in Andorra?

No. The Principality of Andorra It has no inheritance tax (in Catalan: tax on successions) nor equivalent. The transfer of assets by inheritance does not generate any tax obligation in Andorra, neither for the heirs residing in the country nor for the assets located in Andorran territory.

Nor does the wealth tax nor the gift tax. The Andorran tax system is based mainly on the ISI (Impost sobre la Renda de les Persones Físiques, equivalent to IRPF), the IS (Impost de Societats) and the IGI (Impost General Indirecte, equivalent to VAT), all with rates significantly lower than European ones.

Comparison: Inheritance tax in Andorra vs. Spain vs. France

Country / Region	Inheritance from spouse/children	Inheritance between siblings	Maximum collateral
Andorra	0%	0%	It doesn't exist.
Spain (Catalonia)	7–32%	7–32%	7–34% (collaterals)
Spain (Madrid)	~1% (bonus)	~1%	~1% (bonus)
Spain (Balearic Islands)	1–20%	1–20%	Up to 20%
France	5–45% (children)	5–45%	55–60% (3rds)
Germany	7–30% (children)	7–30%	Up to 50%

The absence of inheritance tax is especially relevant for large fortunes. An inheritance of €2 million between siblings in Catalonia can generate a tax bill of over €600,000. In Andorra: €0.

What happens if I own assets in Spain while being a resident of Andorra?

This is the key question for those who have emigrated to Andorra. The answer depends on where the assets are locatednot where the heir resides.

Spain applies the Inheritance and Gift Tax (ISD) for real obligationIf the inherited asset is located in Spanish territory (real estate, bank account in a Spanish bank, shares in a Spanish company), that asset is subject to Spanish Inheritance and Gift Tax regardless of the heir's residence.

The Spain-Andorra Double Taxation Agreement (effective since 2016) ISD is not coveredIt only regulates personal income tax, corporate income tax, and other income taxes. There is no mechanism for eliminating double taxation on inheritances between the two countries.

Planning options with assets in Spain

• Living donation of the Spanish property before establishing Andorran residency (it is subject to Inheritance and Gift Tax in Spain, but from Andorra the net savings can be positive if done correctly)
• Sale of the property and reinvestment in Andorran property or in financial assets without a fixed territorial location
• Andorran corporate structure that he/she is the owner of the Spanish assets — the company shares are located in Andorra, not in Spain (requires real economic substance)
• Life insurance with designated beneficiary: the insurance capital does not form part of the estate in any country and is excluded from Inheritance and Gift Tax.
• Mortgage or lien on the Spanish property to reduce the net inherited value subject to taxation

Important: Any estate restructuring must be carried out well in advance of death to avoid being considered tax avoidance. A minimum of 3-5 years' notice and specialized legal advice on international taxation are recommended.

Lifetime donations from Andorra: how it works

Andorra does not have a gift tax. However, a donation can have indirect tax consequences:

• For the donor: If you donate an asset that has increased in value (for example, shares or an Andorran property), the difference between the acquisition value and the donation value may be considered a capital gain subject to ISI (type 0-10%)
• For the donee: The recipient receives the asset tax-free in Andorra. Its acquisition cost for tax purposes will be the market value at the time of the donation.
• If the good lies in Spain: Spanish Inheritance and Gift Tax (ISD) applies based on real obligation, regardless of the tax residence of the donor and donee.

Wealth tax in Andorra: it doesn't exist either

Unlike Spain, which applies the Wealth Tax (between 0.2% and 3.5% annually on net worth above €700,000), Andorra It has no equivalent..

An Andorran resident with a net worth of €5 million pays no annual tax simply for possessing that wealth. In Spain, that same wealth would generate an annual tax bill of between €60,000 and €175,000, depending on the autonomous community.

This advantage, combined with the absence of inheritance tax and the maximum ISI of 10%, makes Andorra one of the most efficient jurisdictions in Europe for large fortunes and intergenerational planning.

Efficient succession planning from Andorra: common strategies

• Andorran family holding company: Establish an Andorran company as a vehicle for holding family assets (real estate, investments, shares). Shares in the holding company are transferred without Inheritance and Gift Tax (ISD) in Andorra and with additional corporate income tax (IS) advantages under Article 10%.
• Unit-linked life insurance: This vehicle is very popular among high-net-worth individuals (HNWIs) residing in Andorra. The capital is transferred directly to the designated beneficiary without going through the inheritance process.
• Progressive donation during life: Since there is no gift tax in Andorra, the transfer of Andorran assets during one's lifetime is completely tax-free.
• Will with choice of applicable law: The European Succession Regulation (650/2012) allows EU citizens to choose to have their inheritance governed by the law of their country of nationality. Although Andorra is not an EU member state, an Andorran resident with Spanish nationality can plan their succession under either Spanish or Andorran law, as they see fit.
• fiduciary structure: Although Andorra does not have specific regulations for Anglo-Saxon trusts, equivalent structures can be used with civil societies or private interest foundations.

Frequently asked questions about inheritances in Andorra

How many years do you have to live in Andorra for an inheritance to be taxed there?

There is no minimum residency period required for inheritances of Andorran assets to be taxed in Andorra (at rate 0%). However, to establish tax residency and prevent the Spanish Tax Agency from questioning the transfer, it is recommended to demonstrate effective residency of at least 2-3 years prior to death, with evidence of actual presence (183+ days/year, economic activity, CASS health card, family life in Andorra).

Can I donate my apartment in Spain to my children from Andorra without paying taxes?

Not entirely. The donation of real estate located in Spain is subject to Spanish Inheritance and Gift Tax (ISD) (real obligation) regardless of whether the donor resides in Andorra. The donee (recipient) will have to pay the ISD in the autonomous community where the property is located. However, the Andorran portion of the transaction remains tax-free: if the donor realizes capital gains from the property, these gains are taxed under Andorran Income Tax (ISI) (0-10%), not Spanish Personal Income Tax (IRPF).

Will Andorra sign any inheritance agreements with Spain?

There are no known active negotiations to extend the Spain-Andorra Double Taxation Convention to Inheritance Tax. The current Convention (2016) covers only income and capital taxes, not Inheritance and Gift Tax. Given the small size of the Andorran tax base and the asymmetry of interests, this is unlikely to change in the short to medium term.