Andorra (AD)
Andorra is a tiny parliamentary co-principality nestled in the Pyrenees mountains between France and Spain, governed jointly by the French President and the Bishop of Urgell.
2026 Annual Changes — Andorra
Updated thresholds, benefits, and regulatory changes effective this year.
Key changes for 2026 in Andorra: minimum wage rose to €1,525.33/month (+5.4%), the Omnibus 2 Law (January 2026) fundamentally restructured passive residency investment thresholds (general threshold now €1,000,000, AFA bond now non-refundable), CASS average reference salary set at €2,672.52/month for self-employed contribution brackets, IRPF brackets unchanged at 0%/5%/10%, and the EU Association Agreement technical negotiations continue.
Key Changes for 2026
| Category | 2026 Value | Previous | Effective Date |
|---|---|---|---|
| Minimum Wage (SMI — Salari Mínim Interprofessional) Annual adjustment of SMI indexed to cost of living (Decree 8/2026) | €1,525.33/month gross (€8.80/hour) | €1,447.33/month (2025) | 1 January 2026 |
| CASS Contribution Rates and Reference Salary CASS average reference salary updated for 2026 (Decree 28/2026); used to determine self-employed contribution brackets. Salaried employee rates unchanged — no ceiling applies. | Employee: 6.5% of gross salary. Employer: 15.5% of gross salary (total 22%). No ceiling for salaried workers. Self-employed: tiered brackets based on declared income relative to average salary of €2,672.52/month. | Average reference salary €2,536/month (2025) | 1 January 2026 |
| CASS Solidarity Pension (minimum non-contributory pension) Non-contributory solidarity pension indexed; for those with insufficient contribution history | Approximately €629/month (solidarity pension for qualifying low-contribution recipients) | — | 1 January 2026 |
| IRPF Income Tax Brackets IRPF brackets unchanged; annual personal deduction for residents maintained | 0% on first €24,000; 5% on €24,001–€40,000; 10% on income above €40,000. Personal allowance: €24,000 (unchanged). Savings income: first €3,000 exempt; above €3,000 taxed at 10%. | Same structure (2025) | 1 January 2026 |
| Passive Residency — Investment Thresholds (Omnibus 2 Law) Omnibus 2 Law (approved 22 January 2026) fundamentally restructured passive residency investment requirements and changed the AFA bond from refundable to non-refundable | General investment threshold: €1,000,000. Real estate route: minimum €800,000. Housing Fund (Fons d'Habitatge) route: €400,000. AFA bond (non-refundable): €50,000 per main applicant + €12,000 per dependent. Previously the bond was refundable if application was denied — this is no longer the case. | General threshold €600,000; AFA bond €50,000 refundable (pre-Omnibus 2) | 22 January 2026 |
| Paternity Leave Paternity leave duration confirmed at 4 weeks as part of Andorra's family policy reform | 4 weeks (28 calendar days) at 100% salary | 2 weeks (pre-2025 reform) | 1 January 2026 |
| Digital Identity — ANDA Rollout ANDA digital identity system Phase 2: IRPF filing fully mandatory online for ANDA-registered taxpayers; CASS claims streamlined digitally | IRPF digital filing mandatory for ANDA users. CASS claims and residence card tracking available via govern.ad. | Phase 1 pilot (2025) | 1 March 2026 |
| Electric Vehicle Incentives EV purchase subsidy and zero annual vehicle tax for zero-emission vehicles under 2030 Sustainability Strategy | EV subsidy: €1,500–3,000 per new electric vehicle (subject to AFA budget). Zero annual vehicle tax for BEV (Battery Electric Vehicles). | Reduced vehicle tax only (2025) | 1 January 2026 |
| Recycling and Sustainability Targets 2026 waste separation targets under the 2030 Sustainability Strategy — organic waste stream compulsory | 50% household waste separation target; organic waste stream compulsory in 5 of 7 parishes from Q3 2026 | 40% target (2025) | 1 July 2026 |
| IRPF Filing Deadline Annual IRPF filing deadline unchanged | 31 March 2026 for fiscal year 2025 income. Electronic filing via tributacio.ad mandatory for all ANDA-registered taxpayers. | 31 March (unchanged) | 31 March 2026 |
| CASS Childcare Subsidy (Llar d'Infants) Annual adjustment to nursery subsidy rates based on updated income thresholds | Subsidy covers €200–500/month of llar cost depending on family income bracket (updated thresholds for 2026) | €180–480/month (2025) | 1 September 2026 |
| Andorra-EU Association Agreement Technical negotiations continuing; no full ratification expected before 2027 | Negotiations ongoing. No formal ratification expected in 2026. If ratified: Andorra would join the EU single market for goods (not full EU membership). Monitor BOPA for announcements. | Negotiations ongoing (since 2015) | Ongoing |
| Driving Licence — UK Exchange Bilateral UK-Andorra driving licence exchange arrangement | UK licences exchangeable without practical test. Vision test and Andorran residence required. Cost: €40–80 via Departament de Mobilitat i Interior. | — | 1 January 2026 |
| Hotel and Tourism Tax (Taxa Turística) Per-night tourism tax by accommodation category; residents exempt with residency card | 5-star: €3.00/night. 4-star: €2.00/night. Tourist apartments: €2.00/night. 2–3 star: €1.50/night. Pensions/campsites: €1.00/night. 4.5% IGI added on top. Capped at 7 nights per stay. Residents exempt. | Slightly lower in 2025 | 1 January 2026 |
| Grandvalira Ski Pass Prices Annual ski season price adjustment | Day adult pass: €49–59 (high season). Season pass adult: €700–900. Resident discount: ~20% with valid Andorran residency card. | €46–56 day pass (2025) | 1 December 2025 |
January Checklist
Actions to take each January when new rates take effect.
- 1
Confirm IRPF filing deadline: 31 March for FY2025 — engage your gestor early to avoid the March rush.
- 2
Check updated CASS contribution calculation — confirm employer is applying 6.5% employee / 15.5% employer on full gross salary.
- 3
If you have passive residency: review the Omnibus 2 Law changes (Jan 2026) with your gestor — thresholds and AFA bond terms have fundamentally changed.
- 4
Update standing orders if you pay employees at or near minimum wage — SMI is now €1,525.33/month.
- 5
Review your residence permit renewal date — start renewal 90 days before expiry.
- 6
Confirm IRPF quarterly advance payments if self-employed (autònom) and check correct CASS self-employed bracket.
- 7
Check your vehicle's annual taxa de circulació — pay promptly to avoid deregistration.
- 8
Confirm ski resort resident discount eligibility — present valid targeta de residència at Grandvalira or Vallnord.
- 9
If rental contract has annual IPC review clause, expect a landlord rent increase notification.
- 10
For property owners: confirm ITP rates and check for any changes to property transfer regulations.
Where to Track Annual Changes
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BOPA — bopa.ad — official gazette; subscribe to email alerts for new laws and decrees
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CASS portal — cass.ad — contribution rates, benefit amounts, pension values
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Tributació d'Andorra — tributacio.ad — IRPF filing, deduction tables, annual instructions
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Govern d'Andorra news — govern.ad — government press releases on policy changes
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AFA — autoritat-financera.ad — passive residency investment rules and financial regulation
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Andorra Tax Calculator — andorrataxcalculator.com — practical guides including Omnibus 2 Law changes
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Your gestor administratiu — best single source for annual changes affecting your specific situation
The Omnibus 2 Law (January 2026) is the most significant passive residency change in years — the general investment threshold nearly doubled to €1,000,000 and the AFA bond is now non-refundable. Expats pursuing passive residency must verify all current requirements with a qualified andorran gestor before initiating any application. The EU Association Agreement negotiations remain the key long-term structural change to watch — ratification would alter Andorra's single-market access and residency frameworks.
Annual Changes
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