Is Andorra a Tax Haven? Advantages of Tax Optimization

There is no consensus on whether Andorra is a tax haven or not . The European Union and the Organization for Economic Cooperation and Development – OECD do not consider Andorra as a fiscal paradise since 2018 .

On the contrary, the NGO Oxfam International keeps Andorra on the list of 73 countries considered tax havens due to low tax pressure, and in detail lower percentage of revenue contributed to the state to the GDP (Gross Domestic Product). Pyrenean micro-state remains an important financial haven thanks to significantly lower taxes than neighboring countries.

Spain removed Andorra from the list of tax havens in 2010, after agreeing on several bilateral measures. The pact established Andorra’s commitment to adapt its laws by OECD principles, as well as to establish collaboration with the Spanish Tax Agency, including the possibility of carrying out tax inspections in the micro-state.

There is no consensus on whether Andorra is a tax haven or not . The European Union and the Organization for Economic Cooperation and Development – OECD do not consider Andorra as a fiscal paradise since 2018 .

On the contrary, the NGO Oxfam International keeps Andorra on the list of 73 countries considered tax havens due to low tax pressure, and in detail lower percentage of revenue contributed to the state to the GDP (Gross Domestic Product). Pyrenean micro-state remains an important financial haven thanks to significantly lower taxes than neighboring countries.

• Maximum 10% tax on personal income above €40,000
• Andorra corporate tax capped at 10%
• VAT rate (IGI) at 4.5% for most goods and services (the lowest in Europe)
• Non-taxable bank interest up to €3,000 per year
• No wealth tax
• Low contribution to CASS (Caixa Andorrana de Seguretat Social)
• Very reasonable tax rates on Andorra real estate investment
• Double taxation treaties  with several countries

There is no consensus on whether Andorra is a tax haven or not . The European Union and the Organization for Economic Cooperation and Development – OECD do not consider Andorra as a fiscal paradise since 2018 .

On the contrary, the NGO Oxfam International keeps Andorra on the list of 73 countries considered tax havens due to low tax pressure, and in detail lower percentage of revenue contributed to the state to the GDP (Gross Domestic Product). Pyrenean micro-state remains an important financial haven thanks to significantly lower taxes than neighboring countries.

Andorra is a country that has an incredible tax system, however, it is not completely tax-free. The country has no capital gains, inheritance, or sales taxes. In addition to these benefits, the Andorran government does not impose any tariffs on imports and exports. With a maximum of 10% income tax and corporate tax, living in Andorra is a really attractive option if you are looking for a way out of paying high taxes!

There is no consensus on whether Andorra is a tax haven or not . The European Union and the Organization for Economic Cooperation and Development – OECD do not consider Andorra as a fiscal paradise since 2018 .

On the contrary, the NGO Oxfam International keeps Andorra on the list of 73 countries considered tax havens due to low tax pressure, and in detail lower percentage of revenue contributed to the state to the GDP (Gross Domestic Product). Pyrenean micro-state remains an important financial haven thanks to significantly lower taxes than neighboring countries.

Andorra is a country that has an incredible tax system, however, it is not completely tax-free. The country has no capital gains, inheritance, or sales taxes. In addition to these benefits, the Andorran government does not impose any tariffs on imports and exports. With a maximum of 10% income tax and corporate tax, living in Andorra is a really attractive option if you are looking for a way out of paying high taxes!

Tax optimization is fully compatible with transparency. Since 2018, the principality’s banks have the duty to collaborate and contribute to the fiscal clarity effort being made by Andorran institutions. Non-resident EU citizen opening a bank account in Andorra is obliged to communicate their existence to the country of holder’s origin.

There is no consensus on whether Andorra is a tax haven or not . The European Union and the Organization for Economic Cooperation and Development – OECD do not consider Andorra as a fiscal paradise since 2018 .

On the contrary, the NGO Oxfam International keeps Andorra on the list of 73 countries considered tax havens due to low tax pressure, and in detail lower percentage of revenue contributed to the state to the GDP (Gross Domestic Product). Pyrenean micro-state remains an important financial haven thanks to significantly lower taxes than neighboring countries.

Andorra is a country that has an incredible tax system, however, it is not completely tax-free. The country has no capital gains, inheritance, or sales taxes. In addition to these benefits, the Andorran government does not impose any tariffs on imports and exports. With a maximum of 10% income tax and corporate tax, living in Andorra is a really attractive option if you are looking for a way out of paying high taxes!

Tax optimization is fully compatible with transparency. Since 2018, the principality’s banks have the duty to collaborate and contribute to the fiscal clarity effort being made by Andorran institutions. Non-resident EU citizen opening a bank account in Andorra is obliged to communicate their existence to the country of holder’s origin.

Although the principality remains for many foreigners a tax haven, Andorra does not cease to seduce foreign investors. With a clearly advantageous taxation system and a tax structure designed to encourage Andorra residency by investment and entrepreneurship, the principality is one of the top countries for welcoming foreign investment . Andorra has bureaucratic mechanisms, however, management and procedures with the different administrations must be carried out in the official language of the principality, Catalan.