Until the 1st of January 2015, Andorra didn’t have provisions for individual income tax. Only after being compelled to do so by the European Union, did the principality begin taxing residents on their income. Annual income tax in Andorra ranges from:
Known as “Impost de societats” or just IS, the Andorran corporate tax rate is a flat 10%.
Companies that are resident in Andorra are taxed on their worldwide income, whereas non-resident businesses are only liable for tax on income derived within Andorra’s borders.
Intellectual and industrial property companies can benefit of a tax redution and pay only 2% tax on profits, while OICs (known as SICAVs in the rest of Europe) incur no tax whatsoever.
Capital gains tax is levied at a flat rate of 10% for both companies and individuals. However, there are ways to reduce this to zero percent. Get in touch with us to find out more.