The Personal Income Tax is a direct tax that is levied on the income obtained by natural persons who are considered tax residents in Andorran territory.

The world income obtained by the taxpayer is taxed.

Taxpayer is any natural person in which one of the following circumstances occurs:

  • Live more than 183 days in the Andorran territory during the calendar year;
  • That the main nucleus of its economic activities or its economic interests reside in Andorra, directly or indirectly.

The Personal Income Tax levy:

  • Income from work;
  • The income from real estate capital;
  • The income from economic activities;
  • Income from movable capital;
  • Capital gains and losses.

The tax rate is 10%. However, the law provides for reductions, which implies that the equivalent rate is 5% for incomes between 24,000 euros and 40,000 euros.

The taxpayer must present the Personal Income Tax declaration between April 1 and September 30 of the year following that which is the subject of the declaration.