10% corporate tax, 4.5% IGI, no wealth tax or inheritance tax. The complete guide to understanding Andorran taxation and structuring your move.
Since the 2012 tax reform, Andorra applies a modern, transparent tax system, aligned with international standards while remaining highly advantageous.
General rate of 10%, with a reduced 2% rate for certain strategic activities (international trade, R&D). New companies benefit from a 50% reduction of the taxable base during their first 3 years of activity.
Progressive scale: 0% up to €24,000/year, 5% from €24,000 to €40,000, 10% above that. No bracket exceeds 10%.
General rate of 4.5%, with reduced rates (1%, 2.5%) on certain goods and services — among the lowest in Europe.
No wealth tax, gift tax, or inheritance tax in Andorra, unlike France or Spain.
Double taxation treaties with France, Spain, Luxembourg, Portugal and other partner countries.
Contributions to the Caixa Andorrana de Seguretat Social, covering health, retirement and family benefits.
Since the 2012 law opening the country to foreign investment, an Andorran company can be 100% owned by non-residents.
Checking and reserving your company name with the Registre de Comerç i Indústria (RCI).
If you are not an Andorran resident, authorisation from the Govern d'Andorra is required before incorporation — this usually takes a few weeks.
SL (Societat Limitada): minimum capital of €3,000. SA (Societat Anònima): minimum capital of €60,000. Capital is deposited into a blocked Andorran bank account.
Signing the articles of association before an Andorran notary, followed by official registration with the Registre de Comerç i Indústria.
Obtaining the tax registration number (NRT) and CASS affiliation for directors and employees.
Your resident status determines your personal taxation in Andorra — the right choice depends on your professional and financial situation.
Every Andorran company must keep accounts in accordance with the Pla General de Comptabilitat and file its annual accounts with the Registre de Dipòsit de Comptes.
Quarterly IGI (Andorran VAT) returns filed with the tax authority (Departament de Tributs i de Fronteres).
Corporate tax return due before 31 July of the year following the close of the financial year.
Monthly CASS affiliation and contributions for any director or employee residing and working in Andorra.
Opening a business account is mandatory — Andorran banks apply strict compliance procedures (KYC).
A licensed accounting firm in Andorra is strongly recommended to stay on top of local deadlines and tax obligations.
Several reforms take effect in 2026 for Andorran companies — here are the main ones to know about.
Decree 479/2025 (23 December 2025) approved a new general accounting plan, in force since 1 January 2026 and applicable to financial years starting on or after 1 January 2025. Annual accounts must now be filed with the Registre de Dipòsit de Comptes exclusively online — paper filings are no longer accepted.
Sole traders and self-employed professionals taxed under the objective assessment regime remain exempt from filing annual accounts as long as their turnover stays below €150,000/year — confirmed for 2026 and subsequent years.
Mandatory since January 2025 for invoices addressed to Andorran public administrations (B2G), in structured Peppol BIS or UBL 2.1 formats. Not yet mandatory for B2B/B2C, but early adoption is recommended ahead of an eventual roll-out.
In 2026 the Govern is stepping up enforcement against companies that fail to meet their obligations to file annual accounts or declare their beneficial owner — a key focus area in international assessments of transparency and anti-money-laundering efforts.
Understand the procedures, anticipate the tax implications, and prepare your project with confidence.