What are the income taxes for companies in Andorra ?

What are the income taxes for companies in Andorra ?

Since 2009, Andorra has opted for the homologation with Europe, by implementing a model of direct and indirect taxation similar to that of the majority of the neighboring countries. However, Andorra established a competitive tax rate.

The nominal corporate tax rate is 10%.

The 2% special rate is undergoing a profound transformation, it will be applied only for companies operating in the field of intellectual property and under certain conditions.

Count approximately € 450 per month that the company director must pay to CASS (Andorran social security) if he is resident in Andorra (reductions are possible during the first year of activity).

Moreover, the annual taxes corresponding to payments to the municipality, chamber of commerce and government to maintain the company usually are not exceed € 800 for ordinary companies.

Keep in mind that some Andorran holdings own more than 5% of the shares of a foreign company and receive dividends from that company. In this case, the dividends received are totally exempt from tax when a Treaty to avoid double taxation has been signed between Andorra and the country of origin of said dividends.

Finally, this new fiscal framework has allowed to definitely leave behind the label of “tax haven” with the signing of agreements to avoid double taxation.


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