The tax system in Andorra is summarised
Taxation in Andorra is one of the most significant benefits experienced by the Principality’s people. Because it has a system that benefits tax payers, even though it incorporates traditional system statutes into its structure, it manages to incorporate aspects in its favor. This offers them a significant competitive advantage over other countries.
Andorra has one of the lowest percentages of VAT among European countries. With only 4.5 percent. One of the Principality’s most notable attractions. Of course, VAT in Andorra may be reduced. This is determined by the activities in which you are participating. In the case of health, it is 0%. While in the educational sector of up to 1%.
Andorra’s tax advantages for business
Even for SMEs, Andorra’s impuesto sociedades Andorra provide numerous advantages (small and medium-sized companies). With an IS of up to 10%, it is among the lowest in Europe. In addition to having a distinction when compared to adjacent countries.
Similarly, the Andorran tax regime provides numerous commercial advantages:
Corporation tax is limited to a maximum of 10%.
Only 5% of the first €50,000 is taxed. This is valid if the company bills less than € 100,000 over three years. If the earnings exceed € 50,000, the maximum applicable percentage is 10%.
A government tax on businesses ranges from € 200 and € 800 each year.
The Principality and the French government have reached an agreement to prevent the imposition of tax duties twice. As a result, corporations can only pay them in Andorra if relevant.
For the exchange of goods or consumption in the territory, VAT in Andorra is only 4.5 percent.
Wealth or inheritance impuesto sociedades Andorra is not imposed in Andorra. In certain instances, you have complete freedom. The taxation system in the Principality is more flexible than in other countries regarding capital gains taxation. The first example can be regarded as a common income depending on the source. This corresponds to a tax of up to 10% on financial capital gains. Andorra advisors have strong worldwide support to ensure that you immediately can be benefitted from the diversified services that Andorra offers with global capacity.