GSL / International Taxation / Andorra

Andorra tax system - taxation of Andorran companies and individuals: VAT, income tax and capital gains. Tax treaties of Andorra.

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Taxes of Andorra

Сorporate tax
Capital gains tax
0% (dividend), 0% (interest), 5% (royalty)
Withholding tax
Exchange control

Basic taxes (briefly)

Personal tax
Corporate tax (in detail)
Corporate tax is paid at the rate of 10%
Capital gains tax. Details
Capital gains are included in the general tax base
VAT. Details
The standard rate is 4,5%; reduced rates are 1% and 0% for some particular products; 9,5% for bank services
Other taxes
Social contributions, real estate tax, real estate transfer tax
Government fee
Stamp duty

Taxation of individuals

Personal income tax is paid at the following rates:

  • 0% on income up to EUR 24 000;
  • 5% on income from EUR 24 001 to EUR 40 000;
  • 10% on income over EUR 40 000.

On capital gains, in general, the tax is paid at the rate of 10%.

Capital gains are included in the total tax base. Real estate gains are taxed at the rates from 1% to 15% depending on the period of possession prior to the sale; this tax does not apply to the sale of real estate after 10 years of possession.

Profit tax

Resident companies pay tax on their worldwide income, non-residents pay tax on income from sources in Andorra.

Income tax is paid at a rate of 10%.

Dividends received may be exempt from taxation under a number of conditions.

Capital gains are included in the total tax base.

Profit from the sale of real estate is taxed at rates from 1% to 15% depending on the period of ownership before the sale, if real estate is sold after 10 years of ownership this tax does not apply.

Profit from the sale of real estate is also included in the income tax base with a credit for real estate sale tax.

Holding companies holding shares in foreign companies may, under certain conditions, not pay income tax on dividends received and gains from the sale of shares.


The standard rate of VAT is 4,5%.

For certain goods and services, the rate is 2,5%, 1% and 0%, and for banking and financial services it is 9,5%.

Withholding taxes

Dividend and interest payments to non-residents are not subject to withholding taxes.

When paying royalties, the tax is 5%.

Tax is withheld at 10% on payments for technical services.

Social contributions

Employers have to pay social contribution on employees' remuneration at the rate of 14,5%, employees - at the rate of 5,5%.

Property Tax

Local property taxes are paid depending on the size of the property.

Real estate transfer tax

On the transfer of real estate, tax is usually paid at rates ranging from 1,75% to 2,5%.

International tax treaties

Andorra has entered into the following tax information exchange arrangements:

10 DTCs: Cyprus, France, Hungary, Liechtenstein, Luxembourg, Malta, Portugal, San Marino, Spain, United Arab Emirates.

24 TIEAs: Argentina, Australia, Austria, Belgium, Czech Republic, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, Italy, Korea, Liechtenstein, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Spain, Sweden, Switzerland.

Andorra has also signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The Multilateral Convention entered into force for Andorra on January 1, 2022.

Currency control

There are no currency controls in the country.

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