1. Personal Income Tax (IRPF)
Capped at 10%. The first €24,000 of worldwide annual income is completely tax-free; €24,001 to €40,000 is taxed at 5%, and earnings above €40,000 at 10%.
Essential Guide Principality of Andorra Official Sources Cited
Andorra Taxation Guide: 10% Personal Income Tax, 4.5% VAT (IGI), & Corporate Tax
Andorra features one of Europe's most competitive, OECD-compliant tax frameworks, offering a 10% cap on income and corporate tax with no wealth tax.
2. Corporate Tax and Indirect Tax (IGI)
Corporate tax is flat at 10%. The standard consumption tax (IGI) is just 4.5%, the lowest statutory VAT rate across continental Europe.
Frequently Asked Questions
Statutory and practical answers compiled according to Andorran regulations.
Q. Is there a wealth or inheritance tax in Andorra?
No. Andorra imposes zero wealth tax, zero inheritance tax, and zero gift tax between direct relatives.
Q. What is the dividend tax in Andorra?
Dividends paid by Andorran companies to resident shareholders are 100% exempt from personal income tax.
Official Primary Sources
Information synthesized from official publications of the Principality of Andorra: