The Andorran tax system is notable for its simplicity, transparency, and moderate rates, while being fully compliant with international standards. Often perceived as attractive, Andorran taxation is based above all on precise rules that apply to both individuals and entrepreneurs.
Before moving abroad or setting up a company, it is essential to understand how taxation actually works in Andorra, which taxes apply to your situation, and under what conditions you become a tax resident.
The main Taxes in Andorra
- Personal income tax: Progressive rate capped at 10% (from 0% up to €24,000, 5% between €24,000 and €40,000, and 10% above that amount)
- Corporate income tax: Maximum rate of 10% on profits
- IGI (equivalent to VAT): Standard rate of 4.5%, one of the lowest in Europe
- Dividends: 0%
- Capital gains on securities: 0%
- No wealth tax (ISF)
- No inheritance tax
- Social security contributions via the CASS: low compared to other European countries and offers an effective protection system.
