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ANDORRA - PROPERTIES, RESIDENCE PERMITS AND COMPANY FORMATION

Corporate Tax

Any Andorran company, excluding foundations, is taxed as follows: 

– Companies which operate locally in Andorra pay a corporate tax of 10%, after deductions.

– Companies operating internationally with intangible assets, companies engaged in international trade and financial investment and management companies have an 80% deduction on their corporate tax base, to only 2%. The reduction has to be applied for in advance at the Government.

– Holding companies with shares in international companies have an exemption of dividends and capital gains (this has to be applied for in advance at the Government). 

Previously, Andorra used import taxes but they have been replaced by IGI (Impost General Indirect) corresponding to the English VAT with the new tax law of 2013. The IGI is currently 4.5%