THANKS TO ANDORRA’S TAX SYSTEM,
purchasing a yacht can offer
Significant profitability
Specific taxation in andorra
TAXATION
Andorra offers one of the most competitive corporate tax rates in Europe. The general rate is 10%, which is significantly lower than in many other European countries. This can represent significant savings for companies, especially those with high incomes.
Unlike some countries that impose a wealth tax, Andorra has no such taxes. This can be particularly advantageous for individuals and families with significant assets, allowing them to retain a larger portion of their wealth.
Personal income tax in Andorra is also low. The system is progressive, but the rates remain moderate, up to a maximum of 10% for the highest incomes. This low rate is attractive to high-income individuals wishing to reduce their overall tax burden.
Andorra does not levy any tax on capital gains, which is a considerable advantage for investors. Whether for real estate gains or capital investments, residents can fully benefit from the growth of their investments without major tax concerns.
The Value Added Tax (VAT) in Andorra, known as the IGI (Impost General Indirecte), is 4.5%, much lower than in most European Union countries.
Although Andorra has traditionally been considered a haven for tax evasion, the country has signed double taxation agreements with several countries to prevent double taxation and encourage tax transparency. These agreements can provide additional security and tax predictability for businesses and individuals who have tax obligations in other jurisdictions.
Andorra is also known for its high level of confidentiality and security for financial matters. This provides extra peace of mind for investors and residents concerned about preserving the confidentiality of their affairs.
INHERITANCE TAX IN ANDORRA
One of the major attractions of Andorra is the absence of inheritance tax. This means that when a person dies, their heirs can receive their inheritance without having to pay taxes on the value of the assets received. This contrasts sharply with many other countries where inheritance taxes can be significant and greatly reduce the value of the inherited estate.
Andorran legislation allows for the simplified transmission of assets from one generation to another. This not only eliminates the tax burden but also reduces the complexity and administrative costs associated with succession. The procedures are designed to be as clear and straightforward as possible, making estate management easier.
The absence of inheritance tax in Andorra makes the jurisdiction particularly attractive for estate planning. Residents and investors can structure their affairs and investments to maximize benefits for future generations without worrying about tax implications upon their death.
This policy is also a draw for foreign residents considering moving or investing in Andorra. Knowing that their heirs won’t be taxed on the inheritance can be a decisive factor for those looking to protect and pass on their wealth.
TAXATION
Low corporate tax rate
Andorra offers one of the most competitive corporate tax rates in Europe. The general rate is 10%, which is significantly lower than in many other European countries. This can represent significant savings for companies, especially those with high incomes.
No wealth tax
Unlike some countries that impose a wealth tax, Andorra has no such taxes. This can be particularly advantageous for individuals and families with significant assets, allowing them to retain a larger portion of their wealth.
Low personal income tax
Personal income tax in Andorra is also low. The system is progressive, but the rates remain moderate, up to a maximum of 10% for the highest incomes. This low rate is attractive to high-income individuals wishing to reduce their overall tax burden.
No capital gains tax
Andorra does not levy any tax on capital gains, which is a considerable advantage for investors. Whether for real estate gains or capital investments, residents can fully benefit from the growth of their investments without major tax concerns.
Low VAT
The Value Added Tax (VAT) in Andorra, known as the IGI (Impost General Indirecte), is 4.5%, much lower than in most European Union countries.
Double taxation agreements
Although Andorra has traditionally been considered a haven for tax evasion, the country has signed double taxation agreements with several countries to prevent double taxation and encourage tax transparency. These agreements can provide additional security and tax predictability for businesses and individuals who have tax obligations in other jurisdictions.
Confidentiality and security
Andorra is also known for its high level of confidentiality and security for financial matters. This provides extra peace of mind for investors and residents concerned about preserving the confidentiality of their affairs.
INHERITANCE TAX IN ANDORRA
No inheritance tax
One of the major attractions of Andorra is the absence of inheritance tax. This means that when a person dies, their heirs can receive their inheritance without having to pay taxes on the value of the assets received. This contrasts sharply with many other countries where inheritance taxes can be significant and greatly reduce the value of the inherited estate.
Simplified transmission of assets
Andorran legislation allows for the simplified transmission of assets from one generation to another. This not only eliminates the tax burden but also reduces the complexity and administrative costs associated with succession. The procedures are designed to be as clear and straightforward as possible, making estate management easier.
Advantageous estate planning
The absence of inheritance tax in Andorra makes the jurisdiction particularly attractive for estate planning. Residents and investors can structure their affairs and investments to maximize benefits for future generations without worrying about tax implications upon their death.
Attractive for Foreign Residents
This policy is also a draw for foreign residents considering moving or investing in Andorra. Knowing that their heirs won’t be taxed on the inheritance can be a decisive factor for those looking to protect and pass on their wealth.
Co-pilot your project!
Not only are the tax advantages immediate, but the long-term management and transfer of family assets are also greatly optimized. This policy complements the country’s other tax benefits, reinforcing its status as a favorable jurisdiction for business and personal residence.
