Living There

June 07, 2018

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

Residents are not directly taxed on their income. Instead, an array of indirect taxes is in place, such as tax on transfers of real estate, and local taxes.

Local taxes are different in every parish or municipality. The most noticeable local taxes are on services, permits, and transfers of real estate.

Business Tax

Residents are taxed at a flat rate of 10% on their income from business activities as of January 2013.

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 set between 0% and 15%. The applicable tax rate depends on the holding period or the number of years that the property is owned by the seller.


CAPITAL GAINS TAX

HOLDING PERIOD
TAX RATE
1 year
15%
2 years
14%
3 years
13%
4 years
12%
5 years
11%
6 years
10%
7 years
9%
8 years
8%
9 years
7%
10 years
6%
11 years
5%
12 years
4%
13 years
3%
14 years
2%
15 years
1%
Over 15 years
0%

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.

Comments

Be the first to comment on this article!

Login or Register to submit a comment!
In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.