Whether you’re an entrepreneur, businessman, rentier or athlete, MCA Assessors will help you to plan the best strategy to
optimise your personal or/and company taxation. Our team is equipped with an in-depth knowledge of Andorran tax regulations and signed international treaties.
Our accountants will also assist you in complying with all the necessary tax obligations that need to be fulfilled. On your behalf, we’ll submit all mandatory tax reports on direct and indirect taxes, such as company tax, personal tax, VAT, etc.
Due to our long-standing experience and in-depth knowledge, we have strong relationships and connections with the tax officials in Andorra. This makes even the most complex scenarios easily solvable. We've outlined the basics of Andorra's tax system below. Should you need more information please feel free to reach out to us.
Tax in Andorra
Income Tax System in Andorra
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:
0% for €0 to €24,000
5% for €24,001 to €40,000
10% for anything above €40,000
Dividends from Andorran companies are not taxable (provided you are a resident). There are also other exemptions, which you'll find on the official list. There is no inheritance tax. However, income earned on investments and savings is only tax free for the first €3,000. Thereafter you pay 10%.
Capital gains on stockmarket investments are tax free.
Taxation for Legal Entities
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.
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Do you need more information about Andorra's tax system? Perhaps you'd like some help with forming a company. Reach out and give us a call! We will happy to help.
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