Tax rate for Andorra solar container communication station flow battery services

What are the taxes in Andorra?

The main taxes in Andorra are: Personal Income Tax (PIT). Corporate Income Tax (CIT). General Indirect Tax (called IGI, equivalent to VAT). Tax on Real Estate Capital Gains. Andorra’s great tax advantage over countries such as Spain and France is the non-existence of wealth tax and inheritance and gift tax.

Does Andorra pay VAT?

Although Andorra is in a customs union with the European Union, it is not part of the EU VAT area. On January 1, 2013, Andorra replaced its former sales tax regime with the Impost General Indirecte (IGI), which serves as its main value-added tax. The standard IGI rate is 4.5%, but several specific rates apply to various goods and services:

Is Andorra a tax haven?

No, technically, it is not: Andorra was officially removed from the OECD blacklist of tax havens in 2011. However and despite having all the basic taxes, the Principality has one of the lowest tax rates in Europe. Thus, the personal income tax is 0—10%, and the corporate tax on companies’ profits is 10%. The standard VAT rate is only 4.5%.

What is the VAT rate in Andorran?

6. IGI (Andorran VAT) The Principality’s indirect tax on goods and services is called IGI (short for “Impost General Indirect”). It is essentially a Value-Added Tax but is lower than in most EU countries. The general IGI rate is 4.5%, which is markedly less than the 21% in Spain or 20% in France.