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Andorra Adopts Income Tax Law

by Ulrika Lomas, Tax-News.com, Brussels

29 April 2014


The Andorran General Council has adopted draft legislation providing for the introduction of a tax on individual income (IRPF) in Andorra from January 1, 2015.

The IRPF tax will be levied at a flat rate of ten percent on global income exceeding EUR40,000 (USD55,000). A concessionary five percent rate applies for earnings between EUR24,001 and EUR40,000. Meanwhile, tax relief will also be accorded through the law for families, for incapacity, and for the acquisition of a primary residence, and a tax-free threshold of EUR3,000 will be introduced for interest income.

Andorran Finance Minister Jordi Cinca told lawmakers that the new law will help to diversify the nation's economy and to ensure fiscal stability, while at the same time enabling the signing of double taxation agreements. He said these would be key to the territory's economic growth in the years to come.

The Government dismissed proposals for a more progressive tax structure from the parliamentary group chairman of the Opposition Social Democrat (PS) party, David Rios, for a higher tax-free allowance of EUR30,000, and a 20 percent income tax rate for those earning more than ten times the minimum wage.

TAGS: Finance | tax | interest | law | agreements | legislation | tax rates | tax breaks | individual income tax | Andorra

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I was planning to move there next year, family and all....but taxing worldwide income....no way...many better places to live....Andorra is now just like any other country. Bad move.

Chris on Tuesday, May 13, 2014

The IRPF tax, is a global tax, you will have to pay a ten percent for all your incomes around the world. And in the future it could be a twenty percent. And for interestet income there is only a tax free threshold of 3000 EUR.

LUIS GORDOVILE on Monday, May 5, 2014

Este impuesto del IRPF es el fin de Andorra como país. Yo voy a abandonar en breve este país por este motivo, y no recomiendo a nadie que vaya a Andorra.

HUGO BUERO on Saturday, May 3, 2014

Too bad, a pity. The little freedom state has lost his freedom and charm.

catherine on Friday, May 2, 2014

 






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