In mainland France, the stock-market gains of an individual are subject in 2026 to a single flat-rate levy (PFU) of 31.4%, whatever the instrument traded. Locally, capital gains on shares are exempt as long as the holding does not exceed 25%, and other financial gains are taxed at a maximum rate of 10%. The difference is considerable, but it depends on what you trade and how you do it. Here is how each instrument is treated, what distinguishes the individual from the professional, what this represents in a worked example and what leaving France entails.
Key points
- capital gains on shares are exempt if the holding does not exceed 25% of the capital;
- other savings income (derivatives, dividends and interest from foreign sources) is taxed at 10%, after an annual allowance of 3,000 euros; dividends paid by Andorran companies subject to corporate tax are, for their part, exempt;
- no levy on wealth or on the holdings of a portfolio;
- professional activity falls under the general base, with a scale from 0% to 10%;
- leaving France triggers the exit tax above 800,000 euros of securities.
How does Andorra tax trading gains?
A resident's trading gains fall under personal income tax (impost sobre la renda de les persones físiques, IRPF), created by Llei 5/2014 of 24 April 2014. This levy distinguishes two categories, the general base and the savings base, and never exceeds 10%.
Savings base: a single rate of 10%
When you manage your own portfolio, your financial gains fall into the savings base: non-exempt disposals, derivatives, dividends and interest. This category is taxed at 10%, after an annual allowance of 3,000 euros. Unlike the French system, there are neither additional social contributions nor a levy on high incomes: the rate shown is the rate borne. The return is filed each year with the Departament de Tributs i de Fronteres, the Andorran tax administration.
Financial assets: nothing to pay on holdings
Only realised profits are taxed. The country has no wealth tax, no tax on the value of a portfolio, and no taxation of unrealised gains. A portfolio of securities, ETFs or crypto-assets can therefore grow freely as long as no disposal takes place. For a trader building up substantial capital, this is as decisive an advantage as the rate itself: in France, the IFI does spare financial assets, but realised profits bear the flat-rate levy from the very first euro.
Taxation of trading in Andorra by instrument
The treatment depends above all on the instrument traded: shares benefit from a conditional exemption, derivatives and capital income are taxed at 10%, and crypto-assets fall under their own legal framework. On the French side, by contrast, the flat tax applies uniformly.
| Instrument | Regime in Andorra | Rate in Andorra | Rate in France (2026) |
|---|---|---|---|
| Shares and fund units, holding of 25% at most | Capital gain exempt | 0% | 31.4% |
| Shares, holding above 25% | Exempt from 10 years of holding | 10% below 10 years | 31.4% |
| CFDs, futures, options, forex | Savings base | 10% | 31.4% |
| Dividends and interest from foreign sources | Savings base, €3,000 exempt | 10% | 31.4% |
| Dividends from Andorran companies subject to corporate tax | Exempt | 0% | 31.4% |
| Crypto-assets | Savings base | 10% | 31.4% |
Shares and securities: exemption below the 25% threshold
Gains on the sale of securities, fund units and other transferable securities are exempt where the taxpayer has not held more than 25% of the issuer's capital during the twelve months preceding the sale, pursuant to article 5 of Llei 5/2014 on personal income tax. For an active stock-market trader, who never holds such a stake in a listed company, the exemption is therefore the rule. Above 25%, the profit is taxed at 10%, unless the securities have been held for at least ten years. This exemption does not apply where the company sold is predominantly engaged in Andorran real estate, that is, where at least 50% of its assets consist, directly or indirectly, of real estate located in Andorra.
CFDs, futures and forex: 10% in the savings base
Gains on derivative products do not arise from the sale of a transferable security: they do not fall within this exemption. They are included in the savings base and taxed at 10%. This is the most common interpretation error on the subject: a portfolio composed exclusively of index CFDs enjoys no exemption.
Derivatives: no exemption
CFDs, futures, options and forex are not sales of transferable securities. Their gains are always taxed at 10% in the savings base, whatever the underlying.
Dividends and interest: 3,000 euros exempt, then 10%
Dividends and interest from foreign sources fall within the same category and benefit from the annual allowance of 3,000 euros. They are also subject to the withholding tax of the issuer's country, which the applicable treaty may, where relevant, serve to limit. Dividends paid by Andorran companies subject to corporate income tax are, for their part, exempt (article 5 of Llei 5/2014).
Crypto-assets: a legal framework since 2022
Llei 24/2022 of 30 June 2022, in force since 20 October 2022, created the legal framework for digital assets and directly sets out their tax regime: gains on disposal fall within the savings base and are taxed at 10%, each exchange between tokens constituting a taxable event, under the terms detailed in our dedicated analysis of the taxation of cryptocurrencies.
Losses: offsetting and carry-forward over ten years
Savings losses are set off against profits of the same nature, and any excess is carried forward over the following ten years. Note: a loss on exempt shares is not deductible, since the exemption covers the negative result as well as the positive one.
Private trader or professional trader: the classification that changes the regime
The treatment depends not only on the instruments, but on the way you operate. The same profit may fall within the personal-asset regime, the general base of personal income tax or corporate income tax, depending on whether it is a matter of asset management, an economic activity or the purpose of a dedicated structure.
Private management: the asset-based logic
An individual who buys and sells securities for their own account, with their own personal funds, is managing their assets. These follow the rules described above: exemption of securities below the 25% threshold, 10% on the rest of savings. The frequency of transactions is not, in itself, enough to move an active investor into another category.
Economic activity: general base and social security contributions
Transactions become an economic activity when they rest on an organisation of resources comparable to that of a business: volume and regularity, dedicated tools and infrastructure, use of credit or third-party funds, income that constitutes the bulk of one's resources. Article 14 of the same text thus defines the organisation, for one's own account, of means of production with a view to operating in a market. Remuneration paid by funding platforms ("prop firms") generally falls within this category, in the absence of personal capital committed.
These amounts are taxed in the general base. Given the personal minimum of 24,000 euros and the 50% reduction applicable up to 40,000 euros, the tax comes to 0% up to 24,000 euros, 5% between 24,000 and 40,000 euros, then 10%. The self-employed person also contributes to the CASS (social security fund). In practice, the exemption on securities no longer applies: a day trader classified as a business operator pays up to 10% on all their net gains.
Operating through a structure: 10% corporate income tax
Placing one's trading within an Andorran company subjects the profits to corporate income tax (impost sobre societats) at 10%. The structure is mainly justified for capitalising without distributing, or for separating professional capital from private capital, as explained in our guide to setting up a holding company in Andorra. One condition is, however, unavoidable: managing third-party funds, or marketing management services on behalf of clients, requires authorisation from the AFA (Andorran Financial Authority). Without this authorisation, the company may only deal with its own capital.
Worked example: 100,000 euros in trading gains in France and in Andorra
An example makes it possible to measure the real gap between the two countries, for an identical profile. By way of illustration, let us take a private trader who manages their own portfolio, without their transactions being reclassified.
Assumptions: 100,000 euros in profits in 2026, split between 60,000 euros in profits on listed securities (holding always below 25%), 30,000 euros in net results on CFDs and 10,000 euros in foreign dividends. Withholding taxes are set aside.
In France, the whole amount is subject to the flat-rate tax of 31.4%: 100,000 × 31.4% = 31,400 euros.
On the Andorran side, the calculation is done instrument by instrument:
- capital gains on shares: exempt, i.e. 0 euros;
- savings base: 30,000 + 10,000 = 40,000 euros;
- after the 3,000 euro allowance: 37,000 euros;
- tax: 37,000 × 10% = 3,700 euros.
| Item | France | Andorra |
|---|---|---|
| Capital gains on shares (€60,000) | €18,840 | €0 |
| CFDs and dividends (€40,000) | €12,560 | €3,700 |
| Total due | €31,400 | €3,700 |
| Effective rate | 31.4% | 3.7% |
The gap reaches 27,700 euros in a single year. It varies considerably, however, depending on the composition of the portfolio: the larger the share of derivatives, the closer the charge comes to 10%. A trader active exclusively in CFDs would pay 9,700 euros on the same 100,000 euros, i.e. an effective charge of 9.7%.
What conditions must be met to benefit from Andorran taxation?
The Andorran regime applies only to taxpayers who are tax-domiciled in the Principality. Obtaining a residence permit is not enough: your tax residence must actually be on site, and must not be claimed by another country.
Tax residence: 183 days or centre of economic interests
A person is considered a resident if they stay in the Principality for more than 183 days during the calendar year, or if they have established the main centre of their economic interests there. This status is furthermore presumed when the spouse and dependent minor children live there. For a trader whose profession does not depend on any physical location, the 183-day criterion is the easiest to demonstrate: keep proof of presence (lease, invoices, local bank statements). The criteria and how they interact with French law are detailed in our guide to tax residence in Andorra.
Passive or active residence: the permit suited to the trader
The residence permit follows the tax qualification. An investor who manages their personal assets generally falls under passive residence, reserved for persons without any professional activity on site and subject to a minimum investment and an annual presence of at least 90 days. A person whose transactions are reclassified falls under active residence, either on a self-employed basis or through their company. Note: the minimum presence required for this passive status does not coincide with the 183-day threshold. A holder present 90 days a year may remain tax-domiciled in France if their household and economic interests remain there.
Leaving France as a trader: exit tax and tax treaty
This tax relocation has a potential cost on departure and consequences for the allocation of taxing rights between the two countries. Two texts govern this transition: article 167 bis of the French General Tax Code and the France-Andorra treaty.
Exit tax: a threshold of 800,000 euros in securities
Exit tax applies to unrealised capital gains at the moment the taxpayer transfers their residence outside France. It concerns persons domiciled in France for at least six of the ten years preceding departure and who hold either securities with a total value exceeding 800,000 euros, or at least 50% of a company's profits. In this profile, the 800,000-euro threshold is most often the determining factor: it is assessed across the entire portfolio. The amount due, calculated on the basis of 31.4% in 2026, may be subject to a deferral of payment, then to relief if the securities are held beyond two years, a period extended to five years above 2.57 million euros. In practical terms, a portfolio realised before departure remains taxed on the French side: plan significant trades accordingly.
Franco-Andorran convention: capital gains taxed in the State of residence
The convention signed on 2 April 2013 and entered into force on 1 July 2015 in principle assigns the taxation of securities disposals to the State of residence of the transferor, except for companies whose assets consist mainly of real estate, taxable in the State where the property is located, and for substantial holdings (25% or more of a company's profits), taxable in the State of residence of the company (article 13). For a trader holding less than 25%, taxation indeed falls to the State of residence of the transferor: once Andorran residence is established, their stock market operations are governed by Andorran law alone. The text contains a clause allowing France to tax its nationals settled in the Principality, but it remains inapplicable as long as no French law has implemented it.
Proving the break with France
The tax authorities assess domicile under article 4 B of the French General Tax Code: home, principal professional activity, centre of economic interests. An investor who keeps their family home or the bulk of their assets managed from France is exposed to reclassification, a risk detailed in our analysis of tax expatriation to Andorra. It is on this ground that our experts most often intervene: at Engage, we coordinate the relocation file with the French tax specialists responsible for securing the departure.
Frequently asked questions about the taxation of trading in Andorra
Is Andorra a tax haven for traders?
No. The country applies a 10% income tax, carries out the automatic exchange of banking information under the OECD standard and has signed a convention with France. Its advantage lies in the exemption of securities disposals and the absence of a wealth tax, not in opacity.
Can you live in Andorra and keep a French broker?
Yes. The location of the broker does not determine taxation, which depends on your tax domicile. An account with a French, Spanish or other country's broker remains possible, provided you report your change of domicile to avoid French withholding at source.
Are CFD gains exempt?
No. Gains on CFDs and other derivative products do not fall within the exemption for shares: they are taxed at 10% in the savings base.
Do you need to set up a company to trade on site?
No. An individual managing their own assets falls under IRPF, with no structure. A company is justified when the operations constitute an economic activity or when you wish to capitalise, with profits taxed at 10%.
Are capital gains realised before leaving France taxed in Andorra?
No. Profits realised during your French tax residency remain taxable in France, and unrealised capital gains may fall under the exit tax above 800,000 euros of securities. Only profits realised after settling in the Principality fall under Andorran law.
