Unlike France or Spain, the UK has no tax treaty with Andorra and no land border with it, which makes the move more of a project and the planning more important. But for a British buyer weighing a low-tax base after the end of the non-dom regime, Andorra offers something the UK’s new rules do not: a permanent low tax bill rather than a four-year window. This guide sets out what a UK buyer needs to know, honestly, including where the move is harder.
UK-Andorra, plan carefully
Not a 4-year window
Andorra income tax
SRT and UK-situs IHT
Last updated: 22 July 2026
By: Alexander Thornbury
Why UK buyers are looking at Andorra
The UK ended its non-dom regime on 6 April 2025 and replaced it with a four-year Foreign Income and Gains regime for new arrivals, alongside a move to a residence basis for inheritance tax. For a British HNWI who has watched the old shelter close, Andorra offers a permanent alternative: a top income tax rate of 10%, no wealth tax, and no inheritance or gift tax, for as long as you remain resident, not for a fixed window.
That permanence is the pitch. Where the UK’s new regime shelters foreign income for four years and then brings you fully into the net, Andorra’s low rates continue as long as you live there. The benefit, as ever with Andorra, follows genuine tax residency and rewards a real move. For the wider framing, see our international buyer’s guide to Andorra property.
Andorra versus the UK’s 4-year FIG regime
The comparison a British buyer really wants is Andorra against staying in the UK under the new rules. The UK’s FIG regime is generous but time-limited: four years of relief on foreign income and gains for a qualifying new arrival, after which worldwide taxation applies. It suits someone coming into the UK for a defined period. Andorra suits someone leaving for a lasting low-tax base.
So they solve different problems. FIG is a landing pad for a temporary UK stay; Andorra is a destination for a permanent relocation. A British buyer whose plan is to settle somewhere low-tax for the long term, rather than pass through the UK for four years, is comparing Andorra with other permanent bases, not with the FIG window.
The no-treaty position, stated plainly
Here is the honest disadvantage of this corridor. Unlike France and Spain, which have had tax treaties with Andorra since 2016, the UK has no double-tax treaty with Andorra. That means there is no treaty to allocate taxing rights between the two countries or to smooth the transition, so a British buyer must plan the exit and the arrival more carefully than a French or Spanish one.
The practical consequence is that breaking UK tax residence cleanly, under the Statutory Residence Test, matters even more. The Statutory Residence Test is not the simple 183-day rule buyers assume; it weighs days against a set of ties and can catch someone spending far fewer days in the UK. Getting it right is central to the move, and it is firmly a matter for UK tax advice before you go.
| This corridor | France / Spain to Andorra | UK to Andorra |
|---|---|---|
| Tax treaty with Andorra | Yes, since 2016 | No treaty |
| Land border | Yes, a short drive | No; fly then drive |
| Residence-exit test | Domestic residence tests | Statutory Residence Test (day-and-ties) |
What stays taxable in the UK
Leaving the UK does not sever every UK tax link, and this is the point most write-ups skate over. UK-situated property remains within the UK inheritance tax net regardless of where you live, and the UK’s move to a residence basis for inheritance tax adds its own long tail for those who were long-term UK resident. A British buyer keeping a London home should understand it stays IHT-exposed whatever their new residence.
This is also where the Andorra story and the UK story stay consistent rather than contradictory. The end of non-dom pushes some established UK residents to look abroad, and pulls some new arrivals in for the four-year window; both are true because they sit at opposite ends of the UK-residence clock. What neither changes is that UK property itself is always UK-taxed. Take UK advice on what you keep before you move.
What you land in, and getting there
The Andorran destination is the same low-tax regime every buyer lands in: a 10% top income tax, no wealth, inheritance or gift tax, IGI at 4.5%, and a Foreign Investment Tax of 6% on a single home. Passive residency requires EUR 1,000,000 in Andorran assets, or EUR 400,000 via the Housing Fund, plus a non-refundable deposit and 90 days a year of presence. See our residency guide and tax guide.
Access is the other honest friction for a British buyer. Andorra has no airport, so the journey is a flight to Barcelona or Toulouse followed by a drive of around two and three-quarter to three hours. It is not the door-to-door private-jet arrival some buyers expect, and for a UK buyer without the land-border convenience of a French or Spanish mover, that logistics point belongs in the decision from the outset.
| Passive residency at a glance | Detail |
|---|---|
| Investment | EUR 1,000,000 in Andorran assets, or EUR 400,000 via the Housing Fund |
| Government deposit | EUR 50,000 + EUR 12,000 per dependant, non-refundable |
| Physical presence | 90 days a year minimum |
Key takeaways
- The UK has no tax treaty with Andorra and no land border, so the move needs more careful planning than a French or Spanish one.
- Andorra offers a permanent low-tax base, not the UK’s four-year FIG window. They solve different problems.
- Breaking UK residence turns on the Statutory Residence Test, a day-and-ties test, not a simple 183-day rule.
- UK property stays in the UK inheritance tax net regardless of where you live.
- Access is a real friction: no airport, so fly to Barcelona or Toulouse and drive. Take UK advice before the move.
Frequently asked questions
Why are UK buyers moving to Andorra?
Because the UK ended its non-dom regime on 6 April 2025 and replaced it with a time-limited four-year regime. Andorra offers a permanent low-tax base instead: a 10% top income tax, no wealth tax, and no inheritance or gift tax, for as long as you remain resident.
Is there a tax treaty between the UK and Andorra?
No. Unlike France and Spain, which have had treaties with Andorra since 2016, the UK has no double-tax treaty with Andorra. That makes clean planning of the exit and arrival more important for a British buyer.
Is Andorra better than the UK’s new FIG regime?
They solve different problems. The FIG regime gives four years of relief for a new UK arrival, then full worldwide taxation. Andorra is a permanent low-tax base for someone relocating for the long term. A buyer planning to settle low-tax is comparing Andorra with other permanent bases, not with FIG.
Will my UK property still be taxed if I move to Andorra?
Yes. UK-situated property stays within the UK inheritance tax net regardless of where you live, and the UK’s residence basis for inheritance tax adds a tail for long-term former residents. Take UK advice on what you keep before moving.
How do I break UK tax residence to move to Andorra?
Through the Statutory Residence Test, which weighs days spent in the UK against a set of ties and can catch someone on relatively few days. It is not the simple 183-day rule, and getting it right is central to the move. Take UK tax advice.
How do you get to Andorra from the UK?
By flying to Barcelona or Toulouse and driving, roughly two and three-quarter to three hours, as Andorra has no airport. It is a genuine journey rather than a door-to-door arrival, which UK buyers should factor in.
Sources
- Govern d’Andorra – Andorran tax and residency
- GOV.UK / HMRC – the Statutory Residence Test, the FIG regime and the residence basis for inheritance tax
Figures current at July 2026. There is no UK-Andorra tax treaty; plan the UK exit and the Andorran arrival with qualified advisers before you move.
About the author
Alexander Thornbury is a published author who writes on international property, tax and residency for high-net-worth buyers across Europe. His work focuses on the practical mechanics of cross-border purchase: what a buyer actually pays, owes and signs. More at alexanderthornbury.com.