Current tax situation in Andorra - PSF Consultoría empresarial

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Current tax situation in Andorra

Andorra has a complete tax system since the year 2010 although part of it has been developing over the years. A typical question, especially on the part of those who have been in the country for a long time but who in general hear a lot is how this process goes. Until very recently there were many cases where there were de facto exceptions or many specific cases were not contemplated, so during the transition period the situation was somewhat chaotic and many people were not clear where everything went.

 

First, the typical questions of whether there will be a large increase in tax rates, NO. I know that the rumors went up that the IGI would go from 4.5% to 15% and that the social contributions would go from 6.5% to more than 10%, but they are rumors. Certain gradual increases of the quotations are expected with the years that can reach up to 8% by 2020, but the thing about IGI is an invention interested. Even so, the quotations is a controversial issue that we will see where it goes, but in principle should not increase a lot as investors pay a quantity attached to the average salary (so it will not shoot) and workers should not to suffer too many variations from their quotations in the medium term.

 

Regarding the IRPF, now it has to be paid with the requirements of the tax, but it is at most 10% and in general is not being a nuisance for anyone. The filed of the income tax is made as it corresponds and hacienda receives its share, being all within very restrained types. The same can be said if we analyze the corporation tax.

 

Thinking of all these things, one has to think that the Andorra government closed this year in surplus, reason why with a debt of 20% of the GDP in principle the problems of fiscal consolidation at governmental level are nonexistent. Taxes are kept low and they are going to be like this a long time.

 

 

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