General Indirect Tax (IGI)
The General Indirect Tax (IGI) is the equivalent in Andorra of the Value Added Tax (VAT) in Spain or the "Taxe sur la Valeur Ajoutée" (TVA) in France. It is a tax that applies to all deliveries of goods and services provided in Andorran territory.
The tax rate will be determined based on the nature of the transaction carried out.
Below are the tax rates provided for in the tax regulations:
General Rate 4,50%
Increased Rate 9,50%
Reduced Rate 1,00%
Super Reduced Rate 0,00%
Special Rate 2,50%
The Property Transfer Tax (ITP) is a tax that applies to certain transfers of real estate made by individuals, with a tax rate of 4%.
Real estate transactions may be subject to the General Indirect Tax (IGI) when the transfers of real estate are carried out by entrepreneurs or professionals within the scope of their activity, or subject to another indirect tax, the Property Transfer Tax (ITP), when transfers of real estate are not subject to the General Indirect Tax. The tax rate for ITP is 4%.
The direct taxes in Andorra are the Corporate Tax (IS), the Personal Income Tax (IRPF), and the Non-Resident Income Tax (IRNR).
Additionally, in real estate transactions carried out by individuals, the Property Transfer Tax (ITP) may apply.