Income tax in Andorra
October 27, 2016
Nonresidents are taxed on their Andorran-sourced income.
Being an Andorran resident for more than 20 years grants you the same property acquisition rights as a citizen i.e. you will be free to acquire as much property as you can afford.
Married couples must file their taxes separately; joint filing is not permitted.
Residents are not directly taxed on their income. Instead, an array of indirect taxes is in place, such as tax on transfers of real estate, and local taxes.
Local taxes are different in every parish or municipality. The most noticeable local taxes are on services, permits, and transfers of real estate.
Residents are taxed at a flat rate of 10% on their income from business activities as of January 2013.
Rental income earned by nonresidents is taxed at a flat rate of 10%.
Tax on House Rents
Tax on house rents is levied on rental income and the landlord is liable to pay for this tax. The tax is levied at a minimum rate of 0.4% and a maximum rate of 4%.
CAPITAL GAINS TAX
Capital gains tax on sales of real properties is set between 0% and 15%. The applicable tax rate depends on the holding period or the number of years that the property is owned by the seller.
CAPITAL GAINS TAX
|Over 15 years|
Property tax is levied on Andorran property at an average of €100 per property. The property owner is liable to pay this tax.
Tax on Built up Real Estate
Tax on built up real estate is levied at a minimum rate of €0.30 and a maximum rate of €3.00 per square metre of built up property.
Income and capital gains earned by companies in Andorra is levied at a flat corporate income tax rate of 10%. Income-generating expenses are deductible when calculating taxable income.