Tax
A young low-rate tax system with IRPF, IS and IGI
Andorra had almost no direct taxation until a reform completed in 2015 introduced personal income tax. Corporate tax and the indirect general tax remain among the lowest rates in Europe.
Key rules
- Personal income tax is capped at a low top rate with an exempt threshold.
- Corporate income tax applies at a single low general rate.
- IGI is the general indirect tax and replaces VAT-style turnover taxes.
Governing law
- Llei 5/2014 de l'impost sobre la renda de les persones físiques
- Llei 11/2012 de l'impost general indirecte
In practice
Andorra now exchanges financial account information automatically, so the old assumption of banking secrecy no longer holds.