INDIVIDUAL TAXATION

Nonresidents are taxed on their Andorran-sourced income.

Being an Andorran resident for more than 20 years grants you the same property acquisition rights as a citizen i.e. you will be free to acquire as much property as you can afford.

Married couples must file their taxes separately; joint filing is not permitted.

INCOME TAX

Income tax is levied at progressive rates.Income-generating expenses are deductible when calculating taxable income.

RENTAL INCOME
Rental income earned by nonresidents is taxed at a flat rate of 10%.

Tax on House Rents

Tax on house rents is levied on rental income and the landlord is liable to pay for this tax. The tax is levied at a minimum rate of 0.4% and a maximum rate of 4%.

CAPITAL GAINS TAX

Capital gains tax on sales of real properties is generally levied at a flat rate of 10%.The applicable tax rate depends on the holding period or the number of years that the property is owned by the seller.

PROPERTY TAXATION

Property Tax

Property tax is levied on Andorran property at an average of €100 per property. The property owner is liable to pay this tax.

Tax on Built up Real Estate

Tax on built up real estate is levied at a minimum rate of €0.30 and a maximum rate of €3.00 per square metre of built up property.

CORPORATE TAXATION

INCOME TAX

Income and capital gains earned by companies in Andorra is levied at a flat corporate income tax rate of 10%. Income-generating expenses are deductible when calculating taxable income.