Andorra

{"ftc_utility":"low","fbar_trigger_notes":"Andorran bank accounts are commonly required for active and passive residents. Any Andorran bank account exceeding USD 10,000 at any point in the calendar year triggers FBAR filing requirements. Andorra joined the Common Reporting Standard (CRS) framework and exchanges financial account information with participating jurisdictions, though not directly with the US under FATCA - separate FATCA compliance applies to Andorran financial institutions.","ftc_utility_reason":"Andorra's top income tax rate is 10%, well below the US top federal rate of 37%. Foreign tax credits generated on Andorran taxes paid provide limited shelter against US tax liability. The FEIE is generally more advantageous for most expats in Andorra given the low local tax rate.","presence_day_count_notes":"Andorra has no visa requirement for US citizens for stays up to 90 days as a visitor. Establishing tax residency requires either passive residency status (90-day minimum physical presence per year) or active residency. The 330-day physical presence test for FEIE purposes is achievable for residents who actually live in Andorra, but passive residents who spend only 90 days per year in Andorra would not meet the 330-day threshold and would need to rely on the bona fide residence test instead.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.1,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Andorran residents is included in taxable income under IRPF. The progressive rate structure applies: 0% on income up to EUR 24,000, 5% on EUR 24,001 to EUR 40,000, and 10% above EUR 40,000.","tax_rate":0.1,"locally_taxed":true},"social_security":{"notes":"US Social Security benefits received by Andorran tax residents are taxable under IRPF as foreign pension income. No totalization agreement or income tax treaty exists between the US and Andorra to provide relief.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Roth IRA distributions have no special recognition in Andorra given the absence of a US-Andorra tax treaty. Qualified Roth distributions may still be included in assessable income by Andorran tax authorities, though the practical tax burden at up to 10% remains low.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Andorra has no tax treaty with the United States. US 401k and IRA distributions received by Andorran tax residents are treated as foreign-source pension or income and are included in taxable income under IRPF, subject to progressive rates up to 10%. There is no treaty to provide exemption or reduced rates.","tax_rate":0.1,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.1,"notes":"Capital gains in Andorra are generally subject to a specific tax on capital gains from real estate and financial assets. Gains on real estate held more than 10 years may be exempt; shorter holding periods attract rates up to 15%.","details":{"tax_type":"Capital Gains Tax","country_name":"Andorra","country_iso_code":"AND","source_references":["Andorra Tax Administration (ATA)","Govern d'Andorra","IBFD Andorra country profile"],"last_verified_date":"2026-06-03","general_description":"Andorra taxes capital gains under the Impost sobre les Plusvalues en les Transmissions Patrimonials Immobiliaries (IPTP) for real estate and under personal income tax (IRPF) for other assets. Real estate gains are taxed on a sliding scale based on holding period, with a 15% rate for short holds declining to 0% after 10 years. Financial asset gains realized by residents are taxed at rates up to 10% under IRPF.","corporate_capital_gains":{"rate":0.1,"tax_treatment":"Corporate capital gains are included in taxable income and subject to the standard corporate income tax rate of 10%."},"individual_capital_gains":{"rate":0.1,"tax_treatment":"Gains on financial assets held by individual residents are taxed under IRPF at a flat rate of 10%. Real estate gains are taxed under IPTP on a sliding scale: 15% for holdings under 1 year down to 0% for holdings over 10 years."}}}

{"notes":"Andorra generally exempts dividends received from Andorran companies from personal income tax when the recipient holds at least 25% of the paying company for at least 1 year. Dividends from foreign sources are included in taxable income under IRPF at progressive rates up to 10%. There is no separate withholding tax on outbound dividends in most cases.","rates":[{"rate":0,"type":"exempt","notes":"Dividends from qualifying Andorran resident companies (25%+ stake held 1+ year) are exempt from IRPF."},{"rate":0.1,"type":"progressive","notes":"Dividends from non-qualifying sources are taxed under IRPF at progressive rates up to the 10% top marginal rate."}]}