{"id":4000,"date":"2018-12-11T11:01:35","date_gmt":"2018-12-11T09:01:35","guid":{"rendered":"https:\/\/www.molinespatrimonis.com\/test\/2018\/12\/11\/the-tax-system-of-andorra\/"},"modified":"2024-12-03T13:35:10","modified_gmt":"2024-12-03T11:35:10","slug":"the-tax-system-of-andorra","status":"publish","type":"post","link":"https:\/\/www.molinespatrimonis.com\/en\/2018\/12\/11\/the-tax-system-of-andorra\/","title":{"rendered":"The tax system of Andorra"},"content":{"rendered":"<div  class='flex_column av-8tsb-7e960f6eb87353d190ea7193fc420c6f av_one_full  avia-builder-el-0  el_before_av_one_fifth  avia-builder-el-first  first flex_column_div  '     ><p><section  class='av_textblock_section av-m2ei1ut8-b32d0d40ef10ebf0d069d1c540ebfbf8 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-1318 size-full\" src=\"https:\/\/www.molinespatrimonis.com\/wp-content\/uploads\/2024\/10\/image-1-3.jpg\" alt=\"\" width=\"1410\" height=\"500\" srcset=\"https:\/\/www.molinespatrimonis.com\/wp-content\/uploads\/2024\/10\/image-1-3.jpg 1410w, https:\/\/www.molinespatrimonis.com\/wp-content\/uploads\/2024\/10\/image-1-3-300x106.jpg 300w, https:\/\/www.molinespatrimonis.com\/wp-content\/uploads\/2024\/10\/image-1-3-1030x365.jpg 1030w, https:\/\/www.molinespatrimonis.com\/wp-content\/uploads\/2024\/10\/image-1-3-768x272.jpg 768w, https:\/\/www.molinespatrimonis.com\/wp-content\/uploads\/2024\/10\/image-1-3-705x250.jpg 705w\" sizes=\"auto, (max-width: 1410px) 100vw, 1410px\" \/><\/p>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-m1z5u983-3e48799363bbbc3960d1060783420c5c\">\n#top .av_textblock_section.av-m1z5u983-3e48799363bbbc3960d1060783420c5c .avia_textblock{\ncolor:#a0785d;\n}\n<\/style>\n<section  class='av_textblock_section av-m1z5u983-3e48799363bbbc3960d1060783420c5c '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock av_inherit_color'  itemprop=\"text\" ><h1 class=\"crayon article-titre_long-37 regular\">Andorra: an attractive tax system<\/h1>\n<div class=\"crayon article-chapo-175 chapo\"><\/div>\n<div class=\"crayon article-chapo-45 chapo\"><\/div>\n<div class=\"crayon article-chapo-210 chapo\"><\/div>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-m1z57pkc-0e574e2b607f364fe488e11c947b66d3\">\n#top .av_textblock_section.av-m1z57pkc-0e574e2b607f364fe488e11c947b66d3 .avia_textblock{\nfont-size:14px;\n}\n<\/style>\n<section  class='av_textblock_section av-m1z57pkc-0e574e2b607f364fe488e11c947b66d3 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><div class=\"crayon article-chapo-254 chapo crayon-init crayon-autorise\">\n<div class=\"crayon article-chapo-223 chapo crayon-init crayon-autorise\">\n<div class=\"crayon article-chapo-219 chapo\">\n<div class=\"crayon article-chapo-218 chapo\">\n<div class=\"crayon article-chapo-210 chapo\">\n<div class=\"crayon article-chapo-45 chapo\">\n<p><strong>The tax system of the Principality of Andorra, with its tax regulations and taxes, makes Andorra a privileged destination for foreign investors.<\/strong><\/p>\n<div class=\"crayon article-texte-37 \"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"crayon article-chapo-254 chapo crayon-init crayon-autorise\">\n<div class=\"crayon article-texte-223 crayon-init crayon-autorise crayon-hover\"><\/div>\n<\/div>\n<div><\/div>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-m2ei61xl-d5df79c8f6b053ce4e15bc9616d7f43d\">\n#top .av_textblock_section.av-m2ei61xl-d5df79c8f6b053ce4e15bc9616d7f43d .avia_textblock{\ncolor:#a0785d;\n}\n<\/style>\n<section  class='av_textblock_section av-m2ei61xl-d5df79c8f6b053ce4e15bc9616d7f43d '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock av_inherit_color'  itemprop=\"text\" ><h2 class=\"spip\">An attractive tax framework<\/h2>\n<div class=\"crayon article-chapo-175 chapo\"><\/div>\n<div class=\"crayon article-chapo-45 chapo\"><\/div>\n<div class=\"crayon article-chapo-210 chapo\"><\/div>\n<\/div><\/section><br \/>\n<section  class='av_textblock_section av-m2ei7ujx-13a5ad45759242edef05de3b0c4ede5e '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>It is worth noting that in Andorra there is no inheritance tax or wealth tax, and that bank interest is only taxed from \u20ac3,000\/year. The different taxes that exist in Andorra bring many advantages, both for individuals, residents or not in the Principality, and for Andorran companies.  <\/p>\n<h3 class=\"spip\">Advantages of the Andorran tax system for Andorran companies<\/h3>\n<p> In Andorra, companies are subject to 2 main taxes: Corporate Tax (IS) and General Indirect Tax (IGI), and, indirectly to affect the owners of the company, to a third: Personal Income Tax. <\/p>\n<h4 class=\"spip\">Corporate Tax (IS)<\/h4>\n<p> Introduced in 2012 and with a maximum rate of 10%, Corporate Income Tax (IS) taxes the profits made by companies. In Andorra, the tax system provides for particular advantages during the first three years of activity. This tax does not apply to holding companies that have shares in other companies registered outside the country.   <br class=\"autobr\">It should be noted that Spain and Andorra have reached a bilateral agreement to prevent double taxation in relation to Andorran corporate taxation. <\/p>\n<h4 class=\"spip\">Indirect General Tax (IGI)<\/h4>\n<p> Introduced in 2013, it is the equivalent of the Spanish VAT, but its general rate is much lower: 4.5%. This tax is applied to the amount of the provision of services or the amount of the merchandise. The IGI does not tax the export of goods or services.   <\/p>\n<h4 class=\"spip\">Personal Income Tax (IRPF)<\/h4>\n<p> Introduced in 2015, this tax is levied on the income of individuals and, therefore, from a legal point of view, it does not directly tax Andorran companies. What this tax does tax is the professional activity of individuals who own a company or who reside in Andorra for more than 183 days a year.  <\/p>\n<h3 class=\"spip\">Advantages of Andorran taxation for individuals<\/h3>\n<h4 class=\"spip\">Personal income tax: who and what is taxed?<\/h4>\n<p> Taxpayers: <\/p>\n<ul class=\"spip\">\n<li>Any person who resides in Andorran territory for more than 183 days per calendar year<\/li>\n<li>Any person who carries out an economic activity in Andorran territory, or who has economic interests that generate direct or indirect benefits in the Principality of Andorra.<\/li>\n<\/ul>\n<p> Personal income tax is levied on the following income: <\/p>\n<ul class=\"spip\">\n<li>Income from a profession or activity: remuneration, wages, bonuses;<\/li>\n<li>The income that comes from the exploitation of real estate, especially rental property;<\/li>\n<li>Income from economic activities, such as commercial, professional and administrative activities<\/li>\n<li>Income from property or movable rights, such as bank interest<\/li>\n<li>The income that comes from the change in the composition of active gains or capital losses<\/li>\n<\/ul>\n<p> Personal income tax has a maximum rate of 10%. It is non-existent when income does not exceed \u20ac24,000 per year, and is 5% for incomes between \u20ac24,000 and \u20ac40,000 per year. Free acquisitions (inheritances and donations) are not subject to Income Tax.   <\/p>\n<h4 class=\"spip\">Non-Resident Income Tax (IRNR)<\/h4>\n<p> Andorra is an attractive country and the Andorran authorities have had to take into account non-residents who want to benefit from the advantages offered by the country. Non-residents are, for example, cross-border workers who live in Spain or France and who carry out their professional activity in Andorra, or people who work occasionally in Andorra for a short period of time. These people, as they enjoy the advantages of the Pyrenean country, are subject to Andorran taxation via the IRNR and are, for example:   <\/p>\n<ul class=\"spip\">\n<li>Service provider companies (repair, real estate rental, etc.)<\/li>\n<li>Teachers, training professionals, technical assistants<\/li>\n<li>Artists<\/li>\n<li>Cross-border workers affiliated with CASS<\/li>\n<\/ul>\n<p> According to Andorran taxation, the tax rate is 10% of the income received.<\/p>\n<\/div><\/section><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-m2ei6cgs-c39700894a82a5d783a03d7ec57902f1\">\n#top .av_textblock_section.av-m2ei6cgs-c39700894a82a5d783a03d7ec57902f1 .avia_textblock{\ncolor:#a0785d;\n}\n<\/style>\n<section  class='av_textblock_section av-m2ei6cgs-c39700894a82a5d783a03d7ec57902f1 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock av_inherit_color'  itemprop=\"text\" ><h2 class=\"spip\">Attractive taxation for foreign investors in Andorra<\/h2>\n<div class=\"crayon article-chapo-175 chapo\"><\/div>\n<div class=\"crayon article-chapo-45 chapo\"><\/div>\n<div class=\"crayon article-chapo-210 chapo\"><\/div>\n<\/div><\/section><br \/>\n<section  class='av_textblock_section av-m2ei856t-64d4d2950a5f5065180f809169a904f2 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><h3 class=\"spip\">A tax system that favors real estate investment<\/h3>\n<p> The Capital Gains Tax and the legislation on tourist accommodation favor real estate investment in Andorra by foreign investors. <\/p>\n<h4 class=\"spip\">Value Added in Andorra<\/h4>\n<p> This tax, introduced in Andorra in 2006, is levied on the sale of real estate that was acquired less than 10 years before the sale and is paid at the time of the sale of the property. The Government withholds 5% of the amount of the capital gain for a period of 3 to 6 months in order to verify that there are no ongoing administrative sanctions and to control the value of the declared property. How is the Capital Gains Tax calculated? It all depends on the years during which the real estate has been owned by the seller: if the property has been in the possession of the same person for more than 10 years, there is no capital gain. For property that has not been in the possession of the same owner for 10 years, the calculation is made with a correction coefficient set by the Andorran Government. The Capital Gains Tax rate can range between 1% and 15%.      <\/p>\n<h4 class=\"spip\">Legislation on tourist accommodation in the Principality<\/h4>\n<p> If you want to buy an apartment in Andorra to rent it out as a tourist apartment, you will have to comply with Andorran taxation and, more specifically, the Tourist Accommodation Law, updated in 2017. This law requires that the temporary rental be declared to the Ministry of Tourism and that a registration number be obtained for each real estate unit. This number allows the practice of this activity and grants a classification according to the criteria of the same ministry.  <br class=\"autobr\">To guarantee rental quality and facilitate the rental of your real estate investment, Andorran legislation has established a star system identical to the system that exists in Andorra for hotels. The classification of the apartments is made according to international criteria: kitchen equipment, bathroom, etc&#8230; <\/p>\n<h3 class=\"spip\">Notaries, tax specialists of the Principality of Andorra<\/h3>\n<p> With its approximately 78,000 inhabitants, Andorra only has 5 notaries, that is, 1 notary for every 15,000 inhabitants. We attach the contact details of some of the notaries in the Principality:  <\/p>\n<ul class=\"spip\">\n<li>Bartumeu Martinez, Isidre<br class=\"autobr\">C. Prat de la Creu, 36, andorra la Vella<br class=\"autobr\">Tel +376.801.000<\/li>\n<\/ul>\n<ul class=\"spip\">\n<li>Notaria Rosa Ferrandiz<br class=\"autobr\">Bda del Moli, 9, 1-5, Andorra la Vella<br class=\"autobr\">Tel +376.802.660<\/li>\n<\/ul>\n<ul class=\"spip\">\n<li>Rodriguez Mi\u00f1ana, Joan Carles<br class=\"autobr\">Av. Carlemany, 105, 5-3, Escaldes-Engordany<br class=\"autobr\">Tel +376.890.030 <\/li>\n<\/ul>\n<p> The costs of acquiring a real estate asset at the time of the final signing of the deed of sale are as follows: <\/p>\n<ul class=\"spip\">\n<li>1% of the sale price as notary fees<br class=\"autobr\">4% of the value of the property as ITP (Property Transfer Tax). Notaries collect this tax on behalf of the Government. <\/li>\n<\/ul>\n<\/div><\/section><\/p><\/div>\n<div  class='flex_column av-jzyzd-eb67598749e1b4a49b9ef484b0af47fe av_one_fifth  avia-builder-el-8  el_after_av_one_full  avia-builder-el-last  first flex_column_div  column-top-margin'     ><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":2634,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"audio","meta":{"footnotes":""},"categories":[60],"tags":[],"class_list":["post-4000","post","type-post","status-publish","format-audio","has-post-thumbnail","hentry","category-news-for-the-investor-en-2","post_format-post-format-audio"],"_links":{"self":[{"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/posts\/4000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/comments?post=4000"}],"version-history":[{"count":2,"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/posts\/4000\/revisions"}],"predecessor-version":[{"id":4002,"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/posts\/4000\/revisions\/4002"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/media\/2634"}],"wp:attachment":[{"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/media?parent=4000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/categories?post=4000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.molinespatrimonis.com\/en\/wp-json\/wp\/v2\/tags?post=4000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}