Andorra is one small country that is known across the world for as beautiful for its mountains and valleys as for its vibrant culture. This country is in the middle of the Pyrenees where its tax norms for collecting tax are outstanding, which have very little pressure than in several other countries.
Corporation tax for the large firms and SMEs
A principality is pretty much an ideal place for the multinationals and more for SMEs. With the impuestos en andorra (corporate) maximum 10% by the law that can well be minimized to 2% depending on a kind of firm, it’s one of the cheapest in all over Europe. Making a firm in Andorra or building the headquarters of a firm in the territory is an alternative to value for several.
The cheapest in Europe- VAT in Andorra
Pretty similar to the corporate tax, the VAT in Andorra is the cheapest in Europe. Its overall rate is 4.5%, being minimized to 1% in services and goods related to education, culture, health, food, and rentals. Meaning, that VAT in Andorra is very less than its other neighboring countries, like Spain and France, with 21 and 20% respectively.
Individual income tax is ideal in Andorra
Similar to the taxes mentioned earlier, individual income tax in Andorra remains very less than most of the European countries. Individual income tax in Andorra doesn’t exist up to the salaries above 24,000 € and from that very figure, it rises concerning the income of every worker until it attains 10% in the salaries of higher than 40,000 €. This 10% is the max IRPF price in Andorra when the same tax rate is 53% in Spain.
- Exemption of first € 3,000 as the income from the movable capital.
- 100% release of the 1st € 24,000 for the working income, and 50% reduction of the very next tranche of 16,000 €.
- The total exclusion of dividends allotted by the Andorran firm and received by the Andorran resident.
Well, that is all you have here to read and learn a few of the significant things about the taxes in Andorra.
Hopefully, this guide will help you all know and understand a thing or two related to tax. In order to know about this sort of topic or anything else, you may look over the internet as you will find each and everything there.