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Tax System: A Complete Guide Of Fees And Taxes In Andorra

Are you looking for the safest and amazing city to live in? If yes, then you are at the right place. Nowadays, the people living in French and Spanish are more likely to shift their residence to Andorra. Its main reason is that it is clean, safe and has an attractive tax system. 

Who can pay taxes in Andorra?     

Any legal or natural person who is fully established and comes under the principality of Andorra should pay the taxes in Andorra.

For paying income tax in Andorra by a natural person, there are various conditions that a person needs to follow and becomes liable for paying tax in Andorra. In order to be considered as tax residence in Andorra, a person must fulfill the following conditions or circumstances mentioned in consultoría y gestoría en andorra:

All its important interests and nucleus of the economy must reside in Andorra:

  • He/she must contain a residence card in the country in force.
  • Resides in the principality of Andorra for at least 183 days or more

After meeting all the above requirements, the person will be eligible to pay tax in Andorra. The fulfillment of these conditions will change tax residence to Andorra. 

When can you start paying IRPF?

It is necessary to know that not all residents of Andorra need to pay such tax because the law of Andorra states that the individual becomes liable to pay income tax (IPRF) only when their income is greater than € 24000 per year. In addition to this, the first amount received by the individual is fully exempt from such tax.  

Therefore, we can say that the people in Andorra who earns an income of more than € 24000 per year are only liable to pay tax. Therefore, it reduces the tax burden from the people who are just earning their livings.