Andorra is increasingly attracting foreign investors and residents thanks to its advantageous tax system. With some of the lowest tax rates in the world, administrative simplicity and double taxation agreements, the Principality offers ideal conditions for optimize your tax situation. AND Capital, the Andorran firm of chartered accountants, guides you through the specifics of income tax in Andorra.
Who pays income tax in Andorra?
L'impost sobre la renda de les persones físiques (IRPF), the Andorran equivalent of income tax, applies to people resident in Andorra for tax purposes. You are considered a tax resident if :
- You stay more than 183 days a year in Andorra
- You have set up your business in Andorra
On the other hand, frontier workers employed by Andorran companies are subject to non-resident income tax (IRNR) at a maximum rate of 10%.
Advantageous IRPF rates in Andorra
The Andorran IRPF stands out for its particularly low ratesaccording to a progressive scale:
- 0% up to €24,000 annual income
- 5% between €24,001 and €40,000
- 10% over €40,000
"Andorra offers an unbeatable tax environment for individuals and companies alike. The low tax rates make it possible to optimize your income in complete legality."
- The AND Capital team
Advantageous taxation of capital gains
Visit real estate and securities capital gains are taxed at a flat rate of 10% in Andorra, whereas many other countries apply much higher rates. An added bonus for investors!
Andorra, a legal tax haven
Compared to its neighbors like France, Andorra offers many advantages:
- No wealth or inheritance tax
- Low taxation of asset transfers (4 to 4.5%)
- Double taxation agreements
The Principality has signed tax treaties with 8 countries including Franceand guarantees a single level of income taxation. These are just some of the arguments that appeal to entrepreneurs and private individuals looking for a tax optimization legal and efficient.
Would you like to benefit from the advantages of Andorran tax residence ? AND Capitalyour expert in setting up a company in Andorracan help you with yourtax optimization andexpatriation. Contact one of our advisors today for tailor-made support!
