taxation relocate to andorra invico

Andorra Tax Rates

Taxation in Andorra can be summarised as follows: there is a 10% income tax (for companies and residents), 4,5% value added tax, no inheritance tax, no estate tax, no transfer ta, and no tax on Andorran investment income.

Andorra has the lowest VAT rate in Europe.

Social security tax: employees pay at a rate of 5 to 9% of their salaries, whereas employers pay 13% on their employees’ salaries.

Beyond this summary it is important to look into the different types of tax and the laws associated to the Andorran tax system whether it be for individuals or companies.

Main benefits:

  • Is Andorra tax free? It is not a simple yes. There are some nuances.
  • There is a bracket system for personal income tax in Andorra.
  • The IRPF is the personal income tax on natural persons.
  • Andorra has historically been known for its low tax policies.
  • The VAT system was introduced in 2013 and replaced the old Sales Tax regime.
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