Taxation

Historically considered a tax haven, Andorra, even today boasts a tax structure that remains attractive to foreign investors from all around the globe. However, nothing denies the fact that we’ve gone from being a tax haven to a “tax friendly” country, fully homologated by OECD.

 

Whether you’re an entrepreneur, businessman, rentier or athlete, MCA ASSESSORS will help you to plan the best structure to optimise your personal or/and company taxation. Our team is equipped with an in-depth knowledge of Andorran tax regulation and signed international treaties.

Taxation – The Principality of Andorra

Our accountants will also assist you to comply 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 doubts and application easily solvable.

Taxation – The Principality of Andorra

Income Tax System in Andorra

 

Until the 1st of January 2015, Andorra didn’t have provisions for individual income tax. Only after being enforced by the European Union, the principality began taking into consideration the income tax of individuals.

 

Annual income tax in Andorra ranges from:

  • 0 % from 0 € to 24,000 €
  • 5%  of what exceeds from 24,000 € to 40,000 €
  • 10%  of what exceeds from 40,000 €

 

It should be noted that there are many exemptions expected in the law of income taxes. Among others, dividends and incomes from Andorran companies (SL, SA, SICAV, UCIs or FUNDS) are not taxable and neither are the revenues from the products of equity securities.

 

There are no inheritance taxes or taxes on wealth or property.

Taxation for Legal Entities

 

Registered businesses and legal entities must file their accounts in accordance with the Andorran accounting and deposit department each year before July 31 of the following exercise. The maximum tax rate in Andorra is 10% on profitsFor companies with an international vocation, you can get exemptions on the base between 80% and 100%.

 

  • International exploitation societies of intangibles, management or any rights or licenses on the intellectual property, industrial, on charts, formulas, patents, know -how and service provision related to these.
  • International Holding: 0%
  • SICAV and other OIC: 0%
Taxation – The Principality of Andorra