Tax & Legal Framework in Andorra

Taxation of indivuals

Personal taxation in Andorra is designed to be straightforward and low-burden, with modest progressive rates and limited complexity compared with many European systems.
For tax residents, the framework generally applies to worldwide income, with separate treatment for labour and certain savings

Tax	Tax Rate	Description
Personal Income Tax (“IRPF”)	0% – 5% – 10%	– 0% up to €24,000 – 5% from €24,000-40,000 – 10% above €40,000
General Indirect Tax (“IGI”)	0% – 1% – 2.5% – 4.5% – 9.5%	– 0%: health, education, certain essentials – 1%: basic food, books, medicines – 2.5%: certain transport, cultural services – 4.5%: standard rate – 9.5%: certain banking and financial services
Savings Income (interests)	10%	Exempt up to €3,000
Dividends (Andorran resident companies)	0%	–
Dividens (non resident companies)	10%	Integrated in IRPF
Capital Gains (shares, bonds, …)	10%	There are exemptions or reliefs depending on holding period, ownership and structure.
Capital Gains (real estate)	Max 15%	It falls over time, it can reach 0%. – Up to 15% if sold within the first 2 years. – The rate declines by years held, reaching 0% after 10+ years of ownership.
Gifts/inheritance	0%	No inheritance/gift tax on transfers of assets.
Non-resident income tax (IRNR)	10%	– On work/services/rentals (exempt dividents/interest) – Rentals: ~8% effective after 20% deduction

Taxation of companies

Corporate taxation in Andorra is structured to be simple and competitive, with a low headline burden and a limited number of core instruments. The framework prioritises clarity and legal certainty, while allowing targeted incentives in specific, regulated cases.

Tax	Tax Rate	Description
Corporate Income Tax (“IS”)	10%	Applies to resident companies and Andorran permanent establishments of non-residents.
General Indirect Tax (“IGI”)	0% – 1% – 2.5% – 4.5% – 9.5%	Same IGI structure as for individuals.
Dividends/Profit Distribution	0%	Double-tax treaties reduce double taxation and provide legal certainty to repatriate profits to non-resident shareholders.
Capital Gains	10%	There are exemptions or reliefs depending on holding period, ownership and structure.
Withholding Taxes	~0%	Interest, royalties and service fees paid abroad may be subject to low or zero withholding tax.
Local licenses & Fees	–	Parish level fees depend on the activity.

Tax Comparison Across Jurisdictions

Jurisdiction	Max Personal Income Tax	Corporate tax	VAT	Wealth tax	Inheritance tax
UAE	0%	9% (> AED 375k)	5%	None	None
Monaco	0% (exc. French)	25% (> 25% foreign rev.)	20%	None	None
Andorra	10% (0% up to €24k)	10%	4.5%	None	None
Isle of Man	21%	0% (exc. banking 10–20%)	20%	None	None
Switzerland	~22% (effective)	~12–20%	8.1%	Yes (~0.1%)	Varies (0–50%)
Liechtenstein	~24% (varies)	12.5%	8.1%	Yes	Yes (varies)
Panama	25%	25%	7%	None	None (direct)
Cyprus	35%	15%	19%	None	None (spouses)
Malta	35%	35% (eff. 5% refund)	18%	None	Yes (5–12%)
Ireland	40% (+USC to 55%)	12.5% (15% large)	23%	None	33%
Luxembourg	42%	16% + municipal (~24%)	17%	Yes	Yes (0–15%)
Spain	45–47%	25% (21–24% SMEs)	21%	Yes (0.2–3.75%)	Yes (7–34%)
Portugal	48%	20% (16% SMEs)	23%	None	Yes (10%)
France	45% (+3–4% surtax to 49%)	25% (15% SMEs)	20%	Yes	Yes (5–45%)

Andorra Income Tax Calculator

Resident + Single. Employee CASS 6.5%, Employer CASS 15.5%, 250 working days/year.

Annual salary (EUR)

€

Item	Yearly	Monthly	Daily

Notes: IRPF bands used: 0% up to €24,000; 5% (€24,000–€40,000); 10% above €40,000 (applied to taxable income after employee CASS).