Tax

Andorra Tax Rates & System

By
Jose Maria ALFIN
on
April 12, 2022

Andorra Tax Rates & System key features summarized

ANDORRA TAX RATES & SYSTEM: EXECUTIVE SUMMARY

I have considered it interesting to summarize in a straightforward and organized way the main features of the current Andorra Tax system, which we are going to split among individuals tax and corporate tax:

INDIVIDUALS

Personal Income Tax
“Impost sobre la renta de les persones físiques”

Tax rate: 10%

General Tax Base: Income from employment; Economic Activities or Real Estate leasings.

0-24,000 €- Exempt.
24,000-40,000 €.-  Bonus of 50% (in practice, 5%)
As from 40,000 €.-  10%

Savings Tax Base: Income from rents from financial investments or capital gains.

First 3,000 €.- Exempt.
As from 3,000 €.- 10%

Please, fill free to calculate your estimated tax burden in Andorra and the average tax rate by filling the gaps to this tax calculator.

Controlled foreign company rules. By the moment, not applicable in Andorra.

Real Estate Capital Gains Tax Rates.

‍0-15% up to 10

Andorra does not have any net wealth tax, inheritance, or gift tax.

CORPORATIONS.

Corporate Income Tax
“Impost de Societats”

General rate: 10%
Special rate: 0% for pooled investment vehicles.

INDIRECT TAX


“Impost General Indirecte” (Andorra VAT)

General rate: 4,5%
Special rates at different levels.

NETWORK OF DOUBLE TAX TREATIES

France
Spain
Portugal
Cyprus
Malta
Luxembourg
United Arab Emirates
Liechtenstein
San Marino


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