| Tax Rate on Rental Income |
| Monthly Income |
€1,500 |
€6,000 |
€12,000 |
| Tax Rate |
10% |
10% |
10% |
Foreigners are subject to a type of non-resident taxation (NRIT).
Rental Income Tax
Non-residents in Andorra are required to pay the Non-Resident Income Tax (IRNR), which is a general fixed rate of 10%. The NRIT taxable base is calculated on the basis of the net income obtained related to economic activities, work, real estate income, royalties, and capital gains.
| Tax Type |
Rate |
| Non-Resident Income Tax (IRNR) |
10% |
Capital Gains
Capital gains are treated as ordinary economic income and are generally taxed at a rate of 10%.
| Tax Type |
Rate |
| Capital Gains |
10% |
In Andorra, there is a tax on real estate capital gains that ranges from 15% to 1%. The tax rate applied depends on how long the property has been held before selling it, with the rate decreasing over time.
| Real Estate Capital Gain Tax |
Rate |
| If the property is sold within 1 year of purchase |
15% |
| If the property is sold within 2 years of purchase |
13% |
| If the property is sold within 3 years of purchase |
10% |
| Tax rate decreases by 1% for each additional year |
1% - 10% |
Corporate Taxation
In Andorra, corporations are taxed at a 10% corporate income tax (CIT) rate, assessed on a calendar-year basis.
| Tax Type |
Rate |
| Corporate Tax |
10% |
Property Buying Costs and Taxes in Andorra
| Transaction Costs |
| |
|
Who Pays? |
| Registration Fee |
4.00% |
buyer |
| Notary Fee |
0.10% - 0.30% |
buyer |
| Legal Fees |
1.00% - 2.00% |
buyer |
| Real Estate Agent's Fee |
5.00% |
seller |
| Costs paid by buyer |
5.10% - 6.30% |
| Costs paid by seller |
5.00% |
| ROUNDTRIP TRANSACTION COSTS |
10.10% - 11.30% |
| Source: Global Property Guide |
Property Holding Tax
Property tax is assessed annually at a general rate of 0.1% of the average net book value of immovable property.
| Tax Type |
Rate |
| Property Holding Tax |
0.10% |