Home » Corporate and Individual taxation in Andorra

Corporate and Individual taxation in Andorra

The new Andorran tax framework has been approved by the OECD and represents the starting point in the development of double taxation agreements. DTAs have already been signed with France and Luxemburg, Spain and Portugal are to follow. The aim is to strengthen economic relations and to exchange tax information with a large number of countries. Indirect taxation in Andorra is very low (flat rate of 4.5%) and direct taxation is very competitive. Key points are shown below

Companies

  • IntroductionCompanies in Andorra are taxed at a nominal rate of 10% on corporate profits.
  • Deductions and allowances for the creation of jobs, investment in fixed assets and other factors.
  • Reductions down to an effective 2% rate applicable to companies with certain activities.
  • Wealth management tools (such as a SICAV) that allow an effective tax rate between 0.5% and 1%

 

Individuals

  • Income Taxation at a nominal rate of 10%
  • Employment income up to 24.000€ and movable assets income up to 3.000€ are exempt from tax. The next tranche of 16.000€ is exempt by 50%.
  • Dividends from Andorran companies are exempt.
  • No tax on net wealth, donations and inheritance.