How corporate tax works in Andorra
The standard Andorra corporate income tax rate is 10% on net profits. That is the headline rate for ordinary trading, service, holding and investment companies.
Some special vehicles are treated differently. Official guidance confirms that certain collective investment entities can be subject to a 0% corporate tax rate.
Companies with real activity still need to model the rest of the stack. That includes IGI VAT at 4.5% generally, payroll withholding and CASS contributions, local property taxes, and the 2026 foreign-investment real-estate levy if the structure buys property.
Corporate compliance is now mostly electronic. The government requires the annual tax return through the relevant forms, and the one-off account payment is filed electronically on form 810.
Tax rates at a glance
- Corporate profits tax
- 10%Standard
- Standard company tax
- 10%
- Investment entity tax
- 0%
- Non-resident PE tax
- 10%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Holding companiesRegional operatorsInvestorsRemote foundersSmall groups
Watch out for
- A 10% corporate tax rate does not make Andorra frictionless. VAT, payroll, licensing, banking substance and property taxes still matter.
- The 2026 foreign-investment property tax increase is relevant for property SPVs, real-estate developers and holding companies with land exposure.
- If your structure earns cross-border income, treaty relief and non-resident withholding rules need to be checked before assuming 10% is the full story.
Frequently asked questions
Does Andorra have corporate tax?
Yes. The standard corporate income tax rate is 10% for most companies.
Do investment funds pay corporate tax in Andorra?
Some collective investment entities can be taxed at 0%, based on official rulings and the special entity rules.
What else do companies pay in Andorra?
The main add-ons are IGI VAT, CASS payroll contributions, property taxes, licensing costs and any non-resident withholding or treaty-driven obligations.