Tax on property income in Andorra

Taxation Researcher | February 11, 2020

INDIVIDUAL TAXATION

Nonresidents are taxed on their Andorran-sourced income.

INCOME TAX

Nonresidents are taxed at progressive rates on their income from Andorran sources.

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

INCOME TAX 2020

TAXABLE INCOME, €
TAX RATE
Up to €24,000
0%
€24,000 - €40,000
5%
Over €40,000
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.


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.

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