Andorra's tax system The most advantageous in Europe
Discover our support
Our firm specializes intax optimization support. We offer personalized services, tailored to the specific needs of each customer. Our team will guide you through the process and help you to maximize your income. Take advantage of tailor-made support, adapted to your requirements.
OR
The Principality of Andorra's tax system offers many advantages
Maximize the value of your assets and income thanks to to our expertise. Our firm is specialized in tax optimization and business start-ups in Andorra, offering a unique tax regime to boost your income and assets.
Our team of experts is with you every step of the way, simplifying optimization corporate objectives. Seize this opportunity and explore the growth potential we can unlock for you.
Little tax on dividends
In Andorra, corporation tax ranges from 2 % to 10 % on profits from all types of activity.
Not subject to I.F.I.
Andorra is renowned for its favorable tax environment, with no real estate wealth tax.
Reduced VAT rate - 4.5%
Andorran companies benefit from a VAT rate of 4.5%.
Low income tax
Andorra is known for its low taxes, offering long-term residency to foreign investors.
Bank secrecy
Andorra's banking secrecy laws are among the strictest in the world, offering added security for investors.
Company vehicles
Andorran companies can benefit from tax advantages for company cars.
A complete overview of taxes and contributions in Andorra
As a non-EU countries and Schengen arearesidents often take advantage of lower tax rates than in most Western countries. Explore the tax benefits Andorra has to offer for various business sectors, whether as a staff or professional. Make an informed decision with the help of a tax expert to guide you through the various options. Find out more about tax benefits Andorra has to offer!
Personal income tax (IRPF)
Andorra is renowned for its advantageous tax systemapplicable to individuals and businesses. One example is the personal income tax (IRPF), introduced in 2014. This system has several levels, for employees and contractors :
- Up to €24,000 annual income : 0% taxation
- From €24,000 to €40,000 : 5% taxation
- From €40,000 : 10% taxation
This plan applies to living in Andorra for more than 183 days a yearthose working an economic activity or with real estate holdings in the Principality.
Non-Resident Income Tax (IRNR)
Non-resident income tax concerns people working in Andorra who are not tax residents. Here are the key elements of this tax :
- Applicable to French and Spanish border workers
- Calculated annually on funds received
- General rate of 10 %
Understanding the specifics of tax legislation is crucial, as its application depends on the context. Precise knowledge of regulations will enable you to remain compliant and avoid penalties or financial repercussions.
Indirect General Tax (IGI)
Corporate income tax (IS)
Corporate tax in Andorra is based on annual profits and applies to various forms of enterprisesuch as trading, asset or holding companies. Visit tax rate varies between 2% and 10%, enabling companies to efficiently plan their tax strategy to optimize their revenues.
Impôt sur la Fortune Immobilière (IFI) and inheritance tax
In Andorrathere are no taxes such as Impôt de Solidarité sur la Fortune (ISF - wealth tax) and tax on large fortunes (IGF), which are common practice in other countries, such as France. Visit Principality of AndorraThere are taxes and levies that vary according to income, economic activity and property.
Social Security contributions
In Andorrasocial security contributions are very advantageous for employers and employees. The contribution to the Andorran Social Security is particularly low compared to other European countries. This allows companies and workers retain more income and benefit from an efficient social protection system.
Our firm is the ideal partner to support you in your business
To encourage foreign investment, Andorra has been offering incentives since 2012. Cooperation agreements, such as the Double taxation treaty with France, allow foreign investors to take advantage of Andorra's favorable tax regime, attracting individuals and companies to establish their tax residence in Andorra.
Our business center supports customers in their development projects.expatriation, d'tax optimization and business start-ups for many years. Our team of French- and Catalan-speaking tax, legal and administrative experts offers personalized support.