Andorra offers an attractive tax system with significantly lower rates compared to its European neighbours, making it an ideal choice for residents and businesses.
Currently, there are people who wonder if taxes are paid in Andorra, and the answer is yes. Andorra is no longer a tax haven and must comply with the payment of taxes required in the country. For this reason, if you are thinking of coming to live in Andorra, you must know which taxes must be paid.
Andorra is a country with much lower taxes than the countries around it and much of Europe. This makes it a country with one of the lowest taxes in the world. Consequently, both residents and businesses benefit from this.
At the moment, the country has no plans to raise its taxes and for this reason it will continue to be a fiscally attractive country compared to neighboring countries.
General Indirect Tax (IGI) (equivalent to VAT in Andorra)
The General Indirect Tax (IGI) of Andorra is the equivalent of the VAT (Value Added Tax) that is paid in the countries of the European Union. Andorra's IGI becomes the main indirect tax in the country. As with VAT, this General Indirect Tax consists of different types, depending on the product or service.
If you want to open a company in Andorra, this tax is of particular interest to you. Andorra has a corporate tax with a fixed general type of the 10%.
There is also one special regime for exploitation of intangibles, which allows a tax credit of an 80%. In other words, the resulting corporate tax is for 2%.