Nestled between France and Spain, the Principality of Andorra is attracting more and more expatriates and investors in search of an advantageous tax environment. Among the many advantages of this small country, the absence of traditional property tax is of particular interest. But what are the real specifics of Andorra's tax system?
An attractive tax system without property tax
Unlike many European countries, Andorra does not levy an annual property tax on residents occupying real estate. This tax feature is one of the many advantages that attracts people wishing to settle in the Principality.
However, owners must pay certain specific taxes:
- Built-up property tax, calculated according to the location and surface area of the property.
- The "Foc i Lloc" tax, levied by local authorities on residents aged 18 to 65.
Investing in Andorra: a favorable tax environment
In addition to the absence of property tax, Andorra offers an attractive tax framework for investors:
- Income tax capped at 10%, with possible exemptions and deductions.
- Corporate income tax set at 10%, reduced for the first 3 years for new companies.
- Advantageous capital gains tax, declining to 0% after 12 years of ownership.
What's more, the low VAT rate of 4.5% helps maintain a reasonable cost of living, while the quality of services, particularly in health and education, remains excellent.
Why choose to live in Andorra?
Moving to Andorra means enjoying an exceptional lifestyle combining nature, security and tax advantages. Andorra's tax system is designed to attract investors and expatriates seeking tax optimization without compromising quality of life.
Our team of experts will support you in your efforts to passive houseof company formation ortax optimization in Andorra. We'll help you make the most of tax benefits of the Principality, while offering a personalized service.
- The AND Capital team
When you choose AND Capital as your partner for your move to Andorra, you can be sure of tailor-made support from the very beginning to the end.opening your bank account your projects in the Principality. Contact us now for a personalized appointment and find out how to optimize your tax situation in Andorra.
