🇲🇨Monaco vs Andorra🇦🇩
Checked November 4, 2026 · How we score
| Metric | Monaco | Andorra |
|---|---|---|
| Corporate tax | 25% | 10% |
| Top personal tax | 0% | 10% |
| Capital gains tax | 0% | 10% |
| VAT | 20% | 4.5% |
| Usual entity | SARL (limited liability company) or SAM (public limited company) | SL (Societat Limitada, limited liability company) |
| Setup cost | $8,000–$20k | $3,000–$8,000 |
| Yearly cost | $15k–$40k | $5,000–$14k |
| Time to form | 13 weeks | 9 weeks |
| Remote setup | No | No |
| Banking difficulty | 4/5 | 4/5 |
| Digital nomad visa | No | No |
| Our score | 4.4/10 | 5.8/10 |
Choose Monaco if…
- →Wealthy individuals relocating for zero personal income tax
- →Locally oriented service businesses
- →Family offices and private-wealth management
Choose Andorra if…
- →Founders willing to physically relocate for a 10% personal tax cap
- →Wealthy individuals seeking passive residency in Europe
- →Service businesses with a local presence
Questions people ask
Is Monaco or Andorra better for a new company?
Andorra has the lower overall tax burden (10% corporate, 10% top personal). Andorra is also easier and cheaper to set up and run. Monaco carries more weight with banks, investors and customers. Overall, Andorra scores 5.8/10 on our index vs 4.4/10.
Does Monaco have a corporate tax?
Yes. Companies in commercial activity that earn more than 25% of their turnover outside Monaco pay 25% corporate income tax. Businesses earning most revenue within Monaco are generally not subject to it.
Does Monaco have personal income tax?
No, for residents who are not French nationals. French citizens living in Monaco continue to pay French income tax under a 1963 bilateral convention, unless they were established in Monaco before 13 October 1957.
What is the corporate tax rate in Andorra?
The general rate is 10%, with 2% available to new companies for a limited period under conditions, and reduced effective rates for qualifying holding and trading income. A company must be incorporated and operated locally to benefit.
Can a non-resident open a company in Andorra?
Non-resident founders need prior authorisation from the Ministry of Economy for foreign investment, a local registered office and usually a locally resident administrator. A SL requires EUR 3,000 capital and the process takes roughly 1-3 months, so a remote setup is not realistic.
More comparisons
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.