Direct Taxes in Andorra

Corporate Income Tax (IS)

The Corporate Income Tax (IS abbreviated in Andorran) is a tax applied to the profits obtained by a company, and the general tax rate in Andorra is ten percent (10%).

In neighboring countries, Spain and France, the general tax rates applied to corporate profits are twenty-five percent (25%) and thirty-three percent (33%), respectively.

Personal Income Tax (IRPF)

Individuals residing in the Principality of Andorra are subject, for tax purposes, to the Personal Income Tax (IRPF abbreviated in Andorran), and they must include in the taxable base the income received regardless of where the payer is established (worldwide income).

A fiscal resident in Andorra is understood to be a person who:

• Lives more than 183 days in Andorran territory during the natural year.
• Has the main nucleus of their economic activities or economic interests in Andorra, directly or indirectly.

Non-Resident Income Tax (IRNR abbreviated in Andorran)

This tax aims to tax the income obtained in the Principality of Andorra by non-tax residents in this territory (real obligation).

The taxpayers of the tax are individuals or legal entities that obtain income subject to the Tax and receive the consideration of non-tax residents in Andorra.