Taxes

Andorra is a country that has recently been attracting the attention of investors and residents of other countries, mainly due to its fiscal benefits.

What is the Andorran VAT?

The Principality of Andorra has an Added Value Tax known as IGI (Indirect General Tax) of a 4.5% general rate.

What is the Andorran Personal Income Tax?

This is one of the most important benefits that the country offers, especially if we compare it with France and Spain. In Andorra, the Personal Income Tax, known as IRPF, is paid in accordance with the amount of income received by a person, according to the following scheme:

  • Up to € 24,000?of income, the IRPF / PIT is 0%
  • From € 24,001 to € 40,000 of income, the IRPF / PIT is a 5% rate
  • From € 40,000?of income, the IRPF / PIT is a 10% rate

The scheme is organised in sections, so if you declare € 50,000, the first € 24,000?will be exempt from IRPF / PIT (0%), the following € 15,999?will be liable to a 5% IRPF / PIT rate and the final € 10,000?will be liable to a 10% IRPF / PIT rate.

Are there any more taxes in Andorra?

Unlike its neighbouring countries (such as Spain), Andorra does not have property taxes (in Spain there is a 3.5% rate for amounts greater than 10 million euros).

Regarding the Tax on Capital Transfers (ITP), Andorra offers a rate between 4% and 4.5%, depending on whether it is a natural or legal person, while in Spain it can reach a 10% rate.


Andorra, the country with the second lowest tax burden in the euro zone

Andorra, the country with the second lowest tax burden in the euro zone

Andorra offers a great many advantages, particularly in relation to the adjacent countries, with which there are long-standing financial connections, and which are also the source of the most significant investments. The principal taxes are charged at the lowest rates in Europe and this means that the Principality is the country where citizens and businesses suffer the least onerous tax bill.

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Repeal of special corporate tax regimes

Repeal of special corporate tax regimes

The amendment of Law 95/2010 on Corporate Tax declares that, by 2021, companies engaged in the international trade of goods that do not pass through Andorra and intra-group financial management and investment companies will have a general tax rate of 10% or the one in force at that time.

INHERITANCE AND SUCCESSION IN ANDORRA HEIRS CAN WITHDRAW MONEY AND / OR ASSETS?

INHERITANCE AND SUCCESSION IN ANDORRA HEIRS CAN WITHDRAW MONEY AND / OR ASSETS?

In Andorra there is no tax on property obtained by inheritance subject to taxation at source of the assets located outside of Andorra.

THE ANDORRAN GOVERNMENT DEMANDS THE SUBMISSION OF DECLARATIONS RELATING TO INCOME TAX

THE ANDORRAN GOVERNMENT DEMANDS THE SUBMISSION OF DECLARATIONS RELATING TO INCOME TAX

The Deputy Director of Management and Taxpayer Service Department of Taxation and Borders has published in the Official Gazette of the Principality of Andorra societies today have presented statements relating to the tax corresponding to years 2012 and 2013, as well as for the years 2013 ...

ANDORRA, THE POLE OF ATTRACTION FOR A FOREIGN INVERSIÓN

ANDORRA, THE POLE OF ATTRACTION FOR A FOREIGN INVERSIÓN

Andorra account, in actualidad, with a favorable tax to a foreign inversión.

WHO ARE THE SUBJECTS OF IAI IN ANDORRA AND WHICH COUNTRIES EXCHANGED INFORMATION?

WHO ARE THE SUBJECTS OF IAI IN ANDORRA AND WHICH COUNTRIES EXCHANGED INFORMATION?

As established in article 3 of Law IAI are obligated by the IAI Andorran financial institutions required to communicate information, entities resident in Andorra and branches of non-residents located in Andorra.

WHAT IS THE APPLICABLE LAW IN CONNECTION WITH IAI IN ANDORRA?

WHAT IS THE APPLICABLE LAW IN CONNECTION WITH IAI IN ANDORRA?

The main rule developed by the IAI liable for Andorran Law 19/2016, of November 30, automatic exchange of information in tax matters (hereinafter "Law IAI"), published on 22 December in the Official Gazette of the Principality of Andorra, which is directly binding and mandatory, which came into force on January 1 ... READ MORE

NOTICE FOR ADMINISTRATORS REQUIRED TO PAY INCOME TAX

NOTICE FOR ADMINISTRATORS REQUIRED TO PAY INCOME TAX

The Department of Taxation and Borders issued a statement in which technical reports to administrators or members of the administrative bodies that are required to pay income tax, ie that this position is remunerat- the duty to comply with the obligations corresponding census form the Registry of Business and Professional Tax Administration.

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