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.