Taxation in Andorra

0 %
Personal income tax

With a maximum rate of 10%, The Andorran personal income tax is one of the lowest in Europe. Applied on labor income, there is also a € 24,000 exempt minimum and a 5% bonus for income between € 24,000 and € 40,000.

0 %
Corporate tax

Attractiveness general rate of 10% of Corporation Tax in Andorra is much more when taking into account reductions for new businesses, special regimes on the basis of taxation and exemptions to avoid double imposition.

0 %
Corporate tax

Famous and named as IGI, the Andorran indirect tax stands out especially for its simplicity and ease in settlement by the bidders. The general rate is 4.5%although it also has 0%, 1%, 2.5% and 9.5% rates.

Comparison with other countries

Corporation Tax

0 %
Andorra
0 %
Spain
0 %
France
0 %
Portugal
0 %
Germany
0 %
United Kingdom

Maximum personal income taxes

0 %
Andorra
0 %
Spain
0 %
France
0 %
Portugal
0 %
Germany
0 %
United Kingdom

Consumption taxes

0 %
Andorra
0 %
Spain
0 %
France
0 %
Portugal
0 %
Germany
0 %
United Kingdom

Other taxes

Municipal or parochial taxes (Common)

  • The traditional tax of "foc i lloc" (fire and place). 
  • The property tax.
  • The tax on rental income.
  • The filing or location tax of commercial, business and professional activities.
  • The construction tax.
It should be noted that the municipalities or comuns have the power to create their regulation and local taxation, with which the taxes and their charge vary according to the municipality taken into consideration.
municipal, parish or community taxes

Indirect taxes

  • Property transfer tax (ITP)
  • Tax on the provision of insurance services
  • Special taxes

Direct taxes

  • Capital gains tax on property transfers (PLV)
  • Non-resident tax income tax (IRNR)
  • Taxation of savings income
  • Gambling tax
direct and indirect taxes

Fees

  • Fee on the Register of Holders of Economic Activities
  • Vehicle Ownership Tax
  • Immigration fees
  • Court fees
  • Trademark Office Fees Public Prices
  • Rate job applications
  • Animal health and food security rate
  • Consumption tax (customs)
  • Common external tariff (customs)
Costs and fees, customs

Lastly, it should be noted that despite the existence of these taxes and fees, most are of an annual amount or fixed cash or taxes that replace the three big ones previously mentioned. In the end taking all the tributes and as a summary, in Andorra a direct cash rate is paid on any income less than 10%, taxation on consumption is usually low (and therefore so is the cost of living) and fixed municipal and state maintenance taxes amount to only around € 500-1000 per year.

Do you want to know more?

General indirect tax or VAT in Andorra

General indirect tax or VAT in Andorra

Indirect taxes are usually called painless basically because the amounts are divided into multiple small payments (each time we consume) and for ending said dissolved payments in the price system, having the perception that the cost of the product is actually the amount total. The truth is that while they are

Read More >>
Corporation tax (IS) in Andorra in 2020

Corporation tax (IS) in Andorra

As we already commented in our article on taxes in Andorra and on opening a company in the country, one of the most recent taxes is the one that taxes the profits of companies, since until 2011 it did not exist (it was approved on December 29 2010, Law 95/2010) and until 2012 no

Read More >>
IRPF, the income tax in Andorra

IRPF, the income tax in Andorra

One of the most important taxes in Andorra is personal income tax. With an effective rate that never exceeds 10%, the Andorran Natural Income Tax stands out for being one of the lowest in Europe despite maintaining the principle of progressivity like other countries. In this

Read More >>

Frequent questions

❓ What are the most important taxes in Andorra?

The IGI as indirect consumption tax (similar to VAT), the Personal Income Tax (IRPF) on personal income, and the Corporate Tax that taxes the profits of companies and corporations. Read more.

❓What percentage of taxes is applied in Andorra?

Personal income tax and corporation tax have a general rate of 10% and the IGI (VAT) on goods and services is 4.5% of the price of the product, although there are different exemptions, reductions and bonuses.

❓ Does Andorra have a personal income tax by sections?

Despite the general rate of 10%, there is a personal minimum of € 24,000 of income exempt from income tax payment and € 16,000 more with a 50% bonus (effective rate of 5%), as we discuss here.

❓Are there other taxes in the Principality?

Yes, there are other state taxes and municipal taxes that depend on each parish, although they are usually of a fixed and affordable amount that never usually exceed € 1,000 per year.