Tax on property income in Andorra
Effective Tax Rate on Rental Income |
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| Monthly Income | €1,500 | €6,000 | €12,000 |
| Tax Rate | 7.50% | 7.50% | 7.50% |
| Click here to see a worked example | |||
| Source: Global Property Guide research |
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INDIVIDUAL TAXATION
Nonresidents are taxed on their Andorran-sourced income.
INCOME TAX
Nonresidents are generally subject to income tax at a flat rate of 10% 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, € | |
| Up to €24,000 | |
| €24,000 - €40,000 | |
| Over €40,000 | |
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 | |
| 1 year | |
| 2 years | |
| 3 years | |
| 4 years | |
| 5 years | |
| 6 years | |
| 7 years | |
| 8 years | |
| 9 years | |
| 10 years | |
| 11 years | |
| 12 years | |
| 13 years | |
| 14 years | |
| 15 years | |
| Over 15 years | |
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.