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.
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.
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.
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.
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
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
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
