Taxes in Andorra
It will be a great business solution for you to open a business or a Branch office in Andorra. The jurisdiction is extremely loyal to foreign investors and offers them attractive business conditions in terms of taxes. If you want to start a business in Andorra jurisdiction, then we would be glad to assist you with that.
What are the taxes
Andorra is among the countries with the lowest corporate tax rate (2-10%) in Europe, and the corporate tax rate (5-10%). State also provides the lowest value-added tax (VAT or sales tax) rate in all of Europe with 4.5%. There is no inheritance tax and social security contributions are among the lowest in Europe.
System of taxes and fees
There are direct taxes, indirect taxes, and fees in Andorra jurisdiction. Each group has Its own rules and conditions.
Request bookkeeping solution
All companies in Andorra are required to maintain current accounting and financial records of all their operations and submit annual reports (balance sheet, profit and loss statement, auditor’s report) to the country’s tax department.
Tax system
Direct tax
Corporate income tax, personal income tax, council tax levied by the government on behalf of the communes, property tax, a land tax levied by municipalities independently.
Indirect tax
VAT, excise taxes on fuel, tobacco, alcohol.
Fees
Companies in Andorra pay the following fees and duties to the budget every year: Societat Anònima (S.A.) - license fee of 700 euros and state fee for renewal of registration in the amount of 1000 euros. Societat Limitada (S.L.) - license fee in the amount of 700 euros and state fee for renewal of registration in the amount of 500 euros.
Tax rates
The table below displays several of the most prevalent tax categories along with their corresponding rates.
| Tax | Tax Rate |
|---|---|
| Corporate income tax | 10% |
| Personal income tax | 10% |
| Dividend tax | 0% – 10% |
| Capital Gains tax | 10% |
| Property tax | determined by the local parish |
| Inheritance tax | 0% |
| International tax | 0% – 10% (depending on the income type) |
| Cryptocurrency tax | 10% |
Business in Andorra
Our company provides services for setting up a company in Andorra. The specialists of our company have the necessary knowledge, experience and qualifications. We can offer a consultation with taxes in Andorra. In addition, we also provide business support, accounting and other services necessary for your business. Our specialists have vast experience in this field of activity. We will be happy to help you successfully open a business in Andorra.
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Disclaimer
Tax laws and regulations are continually evolving and can differ depending on individual situations. The information shared here is intended for general guidance and may not capture the latest changes. It is strongly advised to seek the assistance of a qualified tax professional for comprehensive and current advice tailored to your specific circumstances.