Andorra personal taxes and tax residence

Presence or economic centre can establish residence

An individual is tax resident if present in Andorra for more than 183 days in the calendar year, or if the main centre or base of activities or economic interests is there, directly or indirectly. Sporadic absences count toward the presence test unless foreign tax residence is established. Staying below the day threshold alone therefore does not establish nonresidence.

Family presumptions and special residence rules

Residence is presumed, subject to contrary proof, where the non-legally-separated spouse and minor children are Andorran tax residents under those tests. The law excludes qualifying daily cross-border workers from Spain or France and separately treats specified Andorran diplomatic/international-representation households abroad as residents. These are defined exceptions, not a general citizenship-based income tax.

Resident income has worldwide scope

IRPF covers a resident individual's income regardless of where it arises or the payer resides, subject to the law's exclusions and exemptions. Its categories include employment, economic activities, real-estate and financial income, capital gains and attributed income. A foreign payer does not by itself make income exempt.

Nonresidents can owe tax on Andorran-source income

The separate IRNR law taxes nonresident individuals on income classified as arising in Andorra. Domestic source rules, exemptions, permanent-establishment treatment and applicable treaties determine the result; nonresidence is not a blanket exemption from Andorran tax.

Foreign-tax relief is limited and documented

For foreign income or gains included in the tax base and taxed abroad, the credit is generally the lower of qualifying foreign tax actually paid and the Andorran tax attributable to that income. Treaty limits and the nature of the foreign tax matter. Unused credit caused by insufficient tax liability can carry to the next three tax periods with supporting documentation; it is not an automatic refund of every foreign tax.