Did you know that dividends are not taxed in Andorra? This makes the Principality a highly attractive destination for investors and entrepreneurs looking to optimize their income. AND Capital, a firm specializing in company formation and tax optimization in Andorra, offers you a comprehensive guide to the taxation of dividends in this country.
A single tax framework for dividends
Unlike many European countries, Andorra has opted for a total tax exemption on dividends. This applies to both tax residents and non-residents. For the latter, double taxation treaties have been signed with several countries, including France and Spain, to avoid double taxation of income.
The total exemption of dividends in Andorra represents a major competitive advantage for investors compared with countries like France, where they are taxed at 30%.
- The AND Capital team
Advantageous tax rates for businesses and individuals
In addition to the dividend exemption, Andorra applies a corporate tax rate of just 10%, one of the lowest in Europe. For tax residents, income below €24,000 a year is totally tax-exempt. Above that, rates vary between 5% and 10%.
Optimize your tax situation with Andorran holding companies
Setting up a holding company in Andorra allows you to benefit from highly advantageous tax regimes, such as the parent-daughter regime, which exempts 95% of dividends received from subsidiaries. Certain conditions must be met, such as holding the shares for at least 2 years. AND Capital's experts are at your disposal to study the best strategy for your situation.
Becoming a tax resident in Andorra
To take full advantage of Andorra's tax benefits, it is often worth becoming a tax resident. This involves spending more than 183 days a year in the Principality. AND Capital can help you with all the formalities involved in obtaining your active residence or passive and manage your installation.
Comparison with neighboring countries
Visit tax benefits in Andorra are undeniable compared to countries like France and Spain. In addition to dividend exemption, tax rates are much lower for both individuals and companies. Enough to convince more and more investors and entrepreneurs to take the plunge.
Andorra offers a highly favorable tax framework and economic environment, enabling you to optimize your income and assets over the long term.
- The AND Capital team
Tailor-made support with AND Capital
Specialist in tax management in AndorraAND Capital puts its expertise at your service to help you make the most of the Andorran tax system. From the company formation to the preparing for your retirementthrough the opening of a bank account or the purchase of a company carOur advisors will guide you through every stage of your project, ensuring tailor-made optimization.
Don't hesitate to contact our team for an initial discussion of your situation and objectives. Together, we'll define the best strategy for making Andorra your tax ally.
