Moving to Andorra from Spain: tax rules and requirements
What Spanish law requires when you move to Andorra: when you stop being Spanish tax resident, how the AEAT checks it, exit tax, the 2015 treaty, what you still pay in Spain and what Andorra asks of you, with a founder's worked example.
In short
- You are Spanish tax resident for the whole year if you spend more than 183 days of the calendar year in Spain or if the core of your economic interests is here.
- Andorra is not on Spain's list of non-cooperative jurisdictions, so the rule that keeps Spanish nationals in Spanish income tax for five years does not apply.
- If you were resident for at least 10 of the last 15 years and your shares are worth more than €4,000,000 (or more than €1,000,000 with over 25% of a company), you are taxed on the unrealised gain when you leave.
- As a non-resident you pay Spain 24% of the gross rent from your flats, 19% of the gains Spain may tax, and wealth tax on your assets here.
- The AEAT's 2026 control plan specifically targets simulated tax residence outside Spain.
Moving to Andorra from Spain: the short answer
Moving to Andorra from Spain means two separate things: an Andorran residence authorisation and ceasing to be Spanish tax resident (article 9 of the income tax law). Spain looks at your days, family and economic interests. Shares worth over €4 million may trigger exit tax, and Spanish income stays taxable in Spain.
This guide covers what Spanish law requires of someone who leaves, how the AEAT (Agencia Estatal de Administración Tributaria, Spain's tax agency, often called Hacienda) checks it, and what obligations remain in each country.
When do you stop being a Spanish tax resident?
Under article 9 of the Spanish personal income tax law (IRPF), you are resident in Spain if any of these applies:
- You spend more than 183 days of the calendar year in Spain. Sporadic absences count as days in Spain unless you prove tax residence in another country.
- The main base of your business or economic interests is in Spain, directly or indirectly. This test works on its own, even if you spend fewer than 183 days here.
- You are presumed resident, unless you prove otherwise, if your spouse (not legally separated) and your dependent minor children habitually live in Spain.
Spain has no split year: according to the AEAT's non-resident manual, a change of residence does not interrupt the tax period. If you leave in September after more than 183 days here, Spain taxes your worldwide income for that whole year.
Your last year as a resident also picks up all income still pending allocation, such as deferred payments from a sale (article 14.3 of the law). And for wealth tax (Impuesto sobre el Patrimonio) you can choose to keep paying on a resident basis in your first year abroad (article 5 of Law 19/1991).
How does the Spanish tax agency check that you really live in Andorra?
In the guidelines of its 2026 Annual Tax Control Plan, the AEAT flags simulated tax residence outside Spain and improper reliance on tax treaties, especially by individuals. It will also look at the real tax residence of content creators, the group that includes the YouTubers who have moved to Andorra.
In practice, the agency tests your case against the three criteria in article 9: days, economic interests and family. Without an Andorran tax residence certificate, your sporadic absences count as days in Spain. According to the AEAT, that certificate is issued by the other country's tax authority and is valid for one year, and a residence permit does not by itself make you tax resident anywhere.
To get data, the treaty lets the AEAT ask Andorra for any information that is foreseeably relevant, including information held by banks (article 24 of the treaty), and its Protocol provides for automatic exchange of financial information under the OECD standard.
Important
An Andorran residence that exists only on paper does not protect you. If the AEAT concludes that you were still living in Spain, or that your centre of interests never moved, it can reassess you as a resident on your worldwide income, with late-payment interest and, where applicable, a penalty. The treaty's Protocol allows each country to apply its domestic anti-abuse rules.
Is Andorra a non-cooperative jurisdiction for Spain?
No. The current list is in Order HFP/115/2023, last amended by Order HAC/649/2026 of 21 June, and Andorra is not on it. Since 11 July 2021, "tax haven" in Spanish law means non-cooperative jurisdiction. As a result:
- Article 8.2 of the income tax law does not apply. It keeps a Spanish national who moves to a non-cooperative jurisdiction in Spanish income tax for the year of the move and the four following years.
- The AEAT cannot require you to prove 183 days of presence in Andorra.
- The special exit tax rules for those countries do not apply.
The list changes (the last revision removed six jurisdictions and added one regime), so check it in the BOE, Spain's official gazette, when you move.
What does the Spain-Andorra tax treaty say?
The double tax treaty was signed on 8 January 2015, published in the BOE on 7 December 2015 and has been in force since 26 February 2016. It covers income taxes, not wealth tax. What matters most when you move:
- Dual residence (article 4). If both countries treat you as resident, you are resident only where you have a permanent home available to you; if you have one in both, where your centre of vital interests is; then where you habitually live; and finally, your nationality.
- Dividends and interest (articles 10 and 11). Spain may tax dividends from a Spanish company at no more than 15% for an individual, and interest at no more than 5%, if you provide an Andorran residence certificate.
- Gains (article 13). Spain may tax the sale of Spanish real estate, of companies deriving more than 50% of their value from Spanish real estate, and of shares representing at least 25% of a Spanish company.
- Directors (article 15). Fees you receive from the board of a Spanish company may be taxed in Spain.
- Protocol. It applies domestic anti-abuse rules, denies benefits to arrangements made mainly to obtain them, and allows taxing income that the other country leaves untaxed.
Do you pay exit tax when moving to Andorra?
Spanish exit tax taxes the unrealised gains on your shares and holdings when you stop being a Spanish income taxpayer (article 95 bis of the law). It applies if you were resident for at least 10 of the 15 tax periods before your last year as a resident and:
- your shares and holdings are worth more than €4,000,000 in total, or
- you hold more than 25% of a company and that stake is worth more than €1,000,000 (then only that stake is taxed).
Any type of entity counts, investment funds included, at their net asset value. Listed shares are valued at their market price; unlisted ones, unless another market value is proven, at the higher of the net equity in the last closed balance sheet and the average profit of the last three closed financial years capitalised at 20%. The gain goes into the savings base of your last year as a resident.
How and when you pay. Through a supplementary self-assessment for that year, with no surcharge or interest, within the filing period of your first year as a non-resident (article 121 of the regulation).
Deferral. Andorra is in neither the EU nor the European Economic Area, so you cannot use the European regime, which only requires payment if within the next ten years you sell, leave that area or fail to report the required details. If the move is temporary, you can ask for a deferral, because Andorra has a treaty with Spain that includes exchange of information: you apply within the same period, stating the country, with collateral (which can be the shares themselves) and late-payment interest (article 122 of the regulation). If you become resident again within the next five tax years without having sold, the debt is cancelled.
If you return or sell later. If you regain residence without having sold, you can claim a refund, with interest. If you sell from Andorra, Spanish non-resident income tax (IRNR) starts from the value used for exit tax (article 24.4 of its law).
If you plan to sell your company, the order matters: see how much tax you pay when selling your company and the guide to Spanish exit tax.
Which taxes do you still pay in Spain?
The rates are set by the consolidated non-resident income tax law, and the treaty caps some of them:
| Spanish income or asset | What you pay as an Andorran resident | Rule |
|---|---|---|
| Rent from a flat | 24% of gross rent, no expenses deducted | IRNR, arts. 24 and 25 |
| Empty or own-use home | 24% of deemed income, a percentage of its cadastral value | IRNR, art. 24.5; IRPF, art. 85 |
| Dividends from a Spanish company | 19%, capped at 15% by the treaty | IRNR, art. 25; treaty, art. 10 |
| Interest | 19%, capped at 5% by the treaty | IRNR, art. 25; treaty, art. 11 |
| Sale of a property | 19% of the gain; the buyer withholds 3% of the price | IRNR, art. 25 |
| Sale of at least 25% of a Spanish company | 19% of the gain | Treaty, art. 13.5 |
| Assets and rights in Spain | Wealth tax on a non-resident basis | Law 19/1991, art. 5 |
Wealth tax. You are taxed on assets and rights located, exercisable or to be performed in Spain on 31 December. The state allowance of €700,000 applies (article 28), and you must file if tax is due or if your assets are worth more than €2,000,000 (article 37). You are entitled to apply the rules of the region where most of your assets by value are located (fourth additional provision). If you hold shares in a family company, review the family business exemption, which depends on your role and pay. More in wealth tax for non-residents.
Tax representative. The AEAT can require you to appoint a representative resident in Spain for IRNR, because of your income or because you own property (article 10), and for wealth tax, where failing to do so is a serious offence with a €1,000 fine (article 6).
What does Andorra require, and how does it tax you?
Andorra is outside the EU, so Spanish nationals also need a residence authorisation: with work, without work, as a digital nomad or as an entrepreneur.
Residence without work (often called passive residence) is granted within a quota and, according to the Govern d'Andorra's page, requires living in Andorra at least 90 days per calendar year, health insurance, annual income above 300% of the Andorran minimum wage (plus 100% per dependant), housing, a deposit with the Autoritat Financera Andorrana (AFA, the financial regulator) and a commitment to invest in Andorran assets. The minimum investment is set by Andorran immigration law; we could not confirm the current figure in the BOPA (Andorra's official gazette), so check it with the immigration service. For professionals with international reach, who must provide at least 85% of their services outside Andorra, the deposit is €47,500, unremunerated, plus €9,500 per dependant.
Tax residence in Andorra. According to the Govern's practical income tax guide for 2024, it rests on the same three tests as in Spain, applied to Andorra, and residents are taxed on worldwide income.
| Question | Rule | Source |
|---|---|---|
| How many days does the no-work permit require? | At least 90 per calendar year | Govern d'Andorra |
| When are you tax resident in Andorra? | Over 183 days or core of interests there | 2024 income tax guide |
| When do you stop being resident in Spain? | Neither over 183 days nor core of interests here | Income tax law, art. 9 |
| Andorran income tax rate? | 10%, with a €24,000 personal allowance | 2024 income tax guide |
The 90-day permit is not enough for an Andorran tax residence certificate. Beyond the allowance, Andorran income tax gives a 50% credit on the tax on the general base, capped at €800, for employment, business or property income. Gains on shares are exempt if you held no more than 25% of the company in the previous twelve months, or if you held more but owned the shares for at least ten years, except in companies with at least 50% of their assets in Andorran real estate. The guide covers the 2024 tax year: check the rules in force for your year.
Worked example: a founder with €5 million in shares
Jordi is 46, lives in Barcelona with his partner and their two children and has always been Spanish resident. In 2014 he founded a tech company and still owns 40% of it, which cost him €40,000. He is considering moving to Andorra with his family in January 2027 and renting out his Barcelona flat for €3,000 a month. The figures illustrate the rules, not what anyone will pay.
Step 1. Does he cross the thresholds? If he stops being resident in 2027, his last year as a resident is 2026 and the valuation is made on 31 December 2026. The company is unlisted: its last balance sheet shows net equity of €3,000,000 (€1,200,000 for his 40%), and the average profit of the last three years, €2,500,000, capitalised at 20% gives €12,500,000 (€5,000,000 for his 40%). The higher figure applies, €5,000,000: above €4,000,000, and Jordi was resident for more than 10 of the last 15 years.
Step 2. The gain. €5,000,000 minus €40,000 acquisition value: €4,960,000, added to his 2026 savings base.
Step 3. The tax. The savings scale combines the state and regional rates (articles 66 and 76 of the law). We assume Jordi has no other savings income in 2026 and that his personal allowance is used against his general base. The first €300,000 pays €71,880:
| Savings base band | Total rate | Tax |
|---|---|---|
| Up to €6,000 | 19% | €1,140 |
| €6,000 to €50,000 | 21% | €9,240 |
| €50,000 to €200,000 | 23% | €34,500 |
| €200,000 to €300,000 | 27% | €27,000 |
| Remaining €4,660,000 | 30% | €1,398,000 |
| Total | €1,469,880 |
Step 4. When he pays. He files the supplementary 2026 self-assessment within the filing period for his 2027 income tax return, which is filed in 2028, with no surcharge or interest. His move is open-ended, so the deferral for temporary moves does not fit.
Step 5. What he still pays in Spain. On the rent, €36,000 a year gross, 24% IRNR: €8,640 a year, with no expenses deducted. On the flat and his shares in the Spanish company, wealth tax on a non-resident basis. If in 2030 he sells his 40% for €6,000,000, Spain may tax the sale (article 13.5 of the treaty): the gain is €1,000,000, because it starts from the €5,000,000 used for exit tax, and IRNR at 19% is €190,000. Without that rule, the gain would be €5,960,000 and the tax €1,132,400.
Step 6. What decides whether he really stops being resident. Spending more than 183 days in Andorra is not enough if the core of his economic interests stays in Spain, and his main asset is a Spanish company. If both countries treat him as resident, the treaty looks first at where he has a permanent home available (a flat let to tenants, in principle, is not). If he kept running the company from Barcelona, the AEAT would have grounds to challenge the move.
How Melso helps
Deciding whether the move holds up, when to make it and what happens to your shares means testing two tax systems and a treaty against your own numbers. At Melso Private the AI models those scenarios and your advisers review each one, with its legal basis, risk and cost, before you decide.
Common mistakes when moving to Andorra
- Confusing the permit with tax residence. The no-work permit requires 90 days; tax residence turns on the 183 days and the core of your interests.
- Moving in the autumn assuming the year splits. If you already spent more than 183 days in Spain, the whole year is Spanish.
- Leaving your family or an available home in Spain. It triggers the family presumption and complicates the treaty tie-breaker.
- Forgetting exit tax or getting it wrong. It covers funds and listed shares and is valued on 31 December of your last year as a resident.
- Stopping your Spanish filings. Rent, dividends and Spanish assets still carry obligations, and wealth tax must be filed above €2,000,000 even if nothing is due.
- Treating the move as a tax decision only. The AEAT checks whether the change is real, and the treaty denies its benefits when obtaining them was the main purpose. More detail in the guide to Spanish tax residency.
How Melso helps
Melso Private provides lawful tax planning for people with net wealth from €1 million, with tax advisers who work with an AI that reads each country's tax law and treaties and models residence and timing scenarios. Your advisers review each scenario and show you every measure with its legal basis, risk and cost, for you to approve before anything is applied; we coordinate with your advisers in other countries and file the returns we agree once you approve the exact version. The first 45-minute conversation is free and we reply within 2 business days: Request a conversation at melso.ai/en/private-wealth.
This article is for information only and does not replace professional advice for your case. Last reviewed: 18 October 2026.
Sources
- Law 35/2006 on Personal Income Tax (consolidated text): articles 8, 9, 14, 66, 76, 85 and 95 bis, BOE (accessed )
- Royal Decree 439/2007, Personal Income Tax Regulation (consolidated text): articles 121 and 122, BOE (accessed )
- Convention between Spain and Andorra for the avoidance of double taxation on income, and its Protocol, of 8 January 2015, BOE (accessed )
- Order HFP/115/2023 of 9 February on non-cooperative jurisdictions (consolidated text after Order HAC/649/2026), BOE (accessed )
- Royal Legislative Decree 5/2004, consolidated Non-Resident Income Tax Law: articles 10, 13, 24 and 25, BOE (accessed )
- Law 19/1991 on Wealth Tax (consolidated text): articles 5, 6, 28, 29 and 37 and fourth additional provision, BOE (accessed )
- Resolution of 11 March 2026 of the AEAT Directorate General, general guidelines of the 2026 Annual Tax and Customs Control Plan, BOE (accessed )
- Non-resident taxation manual, chapter 1: residence of individuals, AEAT (accessed )
- Practical guide to Andorran income tax (IRPF) 2024: tax residence, tax rate, personal allowance and capital gains, Govern d'Andorra (accessed )
- D.1. Residence without work: initial authorisation, Govern d'Andorra (accessed )
