Inheritance Tax Law in Andorra

Inheritance and succession law in Andorra applies to spouses and relatives, depending on the situations related to inheritances. In Andorra, there is no tax on assets obtained by inheritance without prejudice to the taxation at the source for assets located outside Andorra.

Andorran Succession Law

If you obtained Andorra residency in the Principality, the inheritance is tax-free! This is one of the many tax advantages offered by Andorra. The Personal Income Tax law explicitly states that the following income is not subject to the tax and is excluded from the scope of application:

• Capital gains revealed in lucrative transfers by the death of the taxpayer, i.e., transfers in hereditary successions.
• Acquisitions of goods and rights by inheritance, legacy, or any other inheritance title, as well as the acquisitions of goods and rights by donation or any other legal business free of charge and the receipt of amounts by the beneficiaries of life insurance contracts, when a policyholder is a person other than the beneficiary.
• Heirs can dispose of their inheritance from the moment it has been formalized without limitation or condition. Donations are also free of tax.

Writing a will when residing in Andorra

When one has expatriate status in Andorra, two types of wills are available:

• Notarial will can take two forms, open or closed. Open will is written by the notary according to the will of the testator. Closed will is written by the testator and deposited with the notary. The first option is the more preferred solution, as it offers more guarantees in terms of compliance with Andorran law.
• Holographic will is written by the testator’s own hand, describing the act’s date and place of establishment. The holographic will must be confirmed by Andorran justice authorities before notarial incorporation.

How does inheritance work with the absence of testament?

A special provision on assets obtained by family donation is included in the Andorran law. Reserved property law applies in case of the absence of a will or inheritance contract. Assets should be reverted to the family from which they came in.

The importance of leaving a will

Most people leave this world without a will to protect their family or loved ones, either out of carelessness or ignorance. Not making a will is great irresponsibility. For all your loved ones to receive their share of the legacy, it is essential to make a will. This is a simple procedure that can be done by anyone over 14 years of age in full use of their faculties.

The only thing you need is your identity document and a notary to draw up your last will in writing. The figure of the notary in this whole process is fundamental. Finally, making a will is a procedure that does not cost more than €100.

Protect your family and make sure that the assets you have achieved can be enjoyed by the people you love the most.

Inheritance Lawyer in Andorra

Should you have any questions about inheritance and succession, please contact the Andorra Partner inheritance solicitor. Succession specialist will take care of preparing and managing all types of inheritances, including:

• Preparation of the will in Andorra in your inheritance, succession, and donation according to law.
• Distribution of the inheritance in Andorra among the heirs in proportion to the corresponding share.
• Inheritance claim in Andorra
• Legal advice with verification of the will
• Settlement of inheritances in Andorra
• Tax advice in Andorra on inheritance and gift tax of each autonomous community
• Voluntary distribution of inheritance or judicial partition in Andorra
• Tailor-made family protocol in Andorra
• Tax and legal advice in Andorra on family business succession
• Business wills in Andorra
• Preparation of the will of the administrator of a company in Andorra
• Legacy protection in Andorra
• Advice on inheritance rights in Andorra