Tax in Andorra

Andorra boasts a tax structure that’s extremely attractive to foreign investors from all around the globe. Historically considered a tax haven, we’re still very much a “tax friendly” country. The key difference is that we’re now fully homologated by the OECD.
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Tax Expertise

Strategic Tax Planning with MCA Assessors

MCA Assessors is your trusted partner in optimizing personal and company taxation, leveraging our deep knowledge of Andorran tax laws and international treaties. Our accountants will handle all your tax obligations, ensuring full compliance and smooth interactions with Andorra’s tax authorities. Discover the basics of Andorra’s tax system below.
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Income Tax System in Andorra

Individual income tax

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.
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Income Tax System in Andorra

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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Tax Rates in Andorra

Once known for its tax haven status, the Principality of Andorra boasts significantly low tax rates in comparison with most European countries/
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