According to the Government, the main trends in Andorra’s economical development are apparant in investments in the opening of a casino in Andorra, the development of logistics through the construction of a heliport and the launch of commercial flights in an airport in neighboring Spain (10 km from the border with Andorra), capable of having international flights.
After the adoption of the law 10/2012 “On Investments”, which allowed non‑residents to become 100% owners of companies, Andorra joins the list of the best countries for doing business in. After only three years of the law being adopted, according to the International Living Index, Andorra is on the list of the 15 countries with best business conditions.
At present, the tax burden on businesses in Andorra is one of the lowest in Europe. Corporate income tax is 10% with the possibility of a reduction of up to 2%. In Andorra, there is a fixed VAT rate of 4.5% which is also one of the lowest in Europe.
The rate of income tax for the population in Andorra is fixed at 10%, which is also one of the lowest in Europe. If the taxpayer’s income per family is not more than 24,000 euros per year, he may NOT pay income tax.
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