For annual incomes in the range of 25,000 – 40,000 euros, a rate of 5% is applied, for income below 25,000 euros the rate is 0%. It should be noted that with a non-working spouse, the zero tax rate applies to incomes not exceeding 40,000 euros.

In addition, there is the following possibility of deducting certain amounts from the taxable base:

– 750 euros per year for each dependent child under the age of 25 and with an income not exceeding 12,000 euros per year.

– 750 euros per year for each dependent parent in the age above 65 and income below 12,000 euros per year

– 1.000 euros per year for housing renovation

– 5.000 euros per year spent by spouses in the form of investments in social insurance funds, pensions

We also want to emphasize that if an individual, a resident of Andorra, pays taxes outside the Principality, then in Andorra you will not have to pay a second time. If the rate of the paid tax is less than that in Andorra, then the individual will have to pay the difference between the rates in Andorra.

The VAT rate in Andorra(IGI) is 4.5%

Our company will help you to go through all the necessary formalities for registering with the tax office and   find a qualified accounting company.

However, this is unlikely to be an obstacle for including Andorra in your business structure by linking other profit-generating enterprises to the Andorran holding, and if you add here the fiscal residence in Andorra for the founders, for whom in this case there will be no tax on dividends received from Andorran company, then you can use what you earn absolutely without any problems at your discretion.

Our company closely cooperates with Andorran leading specialists in the field of international tax planning, members of the AATF (Association of Tax and Financial Assessors of Andorra), as well as with the Andorran Banks Association (ABA), which will help us to comprehensively approach the solution of a particular task set before us and develop the best solution for you and your business.