{"id":17688,"date":"2026-11-03T21:04:08","date_gmt":"2026-11-03T20:04:08","guid":{"rendered":"https:\/\/setupandorra.com\/gestoria-andorre\/accounting-and-tax-returns\/"},"modified":"2026-11-03T22:16:29","modified_gmt":"2026-11-03T21:16:29","slug":"accounting-and-tax-returns","status":"publish","type":"page","link":"https:\/\/setupandorra.com\/en\/setup\/accounting-and-tax-returns\/","title":{"rendered":"Accounting and tax returns in Andorra"},"content":{"rendered":"\n<div id=\"cass-lp\">\n<style>\n#cass-lp{--navy:#102039;--verm:#F73100;--cream:#FAF7F3;--surface:#fff;--ink:#14202E;--muted:#55636F;\n  --faint:#8A96A0;--line:#E7E1D9;--sans:'Jost',-apple-system,BlinkMacSystemFont,sans-serif;\n  font-family:var(--sans);font-weight:300;color:var(--ink);line-height:1.62}\n#cass-lp *{box-sizing:border-box}\n#cass-lp .wrap{max-width:1152px;margin:0 auto;padding-inline:20px}\n#cass-lp .grid{display:grid;grid-template-columns:minmax(0,1fr) 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var(--line);padding-top:16px;margin-top:26px;max-width:72ch}\n#cass-lp .fin{background:var(--cream);border-radius:18px;padding:30px 32px;margin:34px 0 72px}\n#cass-lp .fin h2{margin-bottom:12px}\n<\/style>\n\n<div class=\"wrap\">\n\n  <div class=\"hero\">\n    <p class=\"eyebrow\">Gestoria \u00b7 accounting and tax obligations<\/p>\n    <h1>Accounting and tax returns in Andorra<\/h1>\n    <p class=\"chapo\">An Andorran company keeps accounts, files a corporate tax return at a rate of <b>10 %<\/b>, declares IGI, and pays an instalment during the year. The deadlines do not run on the calendar year, but on <b>your accounting year end<\/b>.<\/p>\n  <\/div>\n\n  <div class=\"grid\">\n    <div>\n\n      <section>\n        <p class=\"sur\">The basic obligation<\/p>\n        <h2>What the law requires you to keep<\/h2>\n        <p>Keeping accounts is a legal obligation for every Andorran business, set by the law on business accounting. It does not depend on your turnover, and commercial companies are bound in any case, precisely because of their form (art. 1.2.b of Llei 30\/2007): a newly formed SLU is as liable as an established SA.<\/p>\n        <p>Those accounts then underpin every return you file. Accounts kept late do not just delay a balance sheet: they push back corporate tax, distort the instalment calculation, and feed through to the renewal of your residency if you are a director.<\/p>\n      <\/section>\n\n      <section>\n        <p class=\"sur\">Corporate tax<\/p>\n        <h2>One rate, a timetable that catches people out<\/h2>\n        <p>The general rate of corporate tax is <b>10 %<\/b>. There is <b>no exemption threshold<\/b> : a company making \u20ac24,000 of profit owes \u20ac2,400 and still has to file. The \u20ac24,000 personal allowance often quoted belongs to personal income tax, not to corporate tax.<\/p>\n        <p>The timetable follows your financial year, not the calendar year:<\/p>\n        <ol class=\"cal\">\n          <li><div><h3>Financial year end<\/h3><p>On the date you set in the articles.<\/p><\/div><\/li>\n          <li><div><h3>Six months to close the accounts<\/h3><p>This is the period in which the accounts must be closed and approved.<\/p><\/div><\/li>\n          <li><div><h3>One month to file<\/h3><p>The return is filed in the month following those six months. For a 31 December year end, the deadline therefore falls in July.<\/p><\/div><\/li>\n          <li><div><h3>An instalment in the ninth month<\/h3><p>An interim payment equal to half of the previous year&#8217;s charge is due in the ninth month of the current year.<\/p><\/div><\/li>\n        <\/ol>\n        <p style=\"margin-top:20px\">It is that instalment which catches companies out in their second year: it is calculated on a year already closed, while present-day cash flow may tell a different story.<\/p>\n      <\/section>\n\n      <div class=\"avert\">\n        <p class=\"k\">The most widespread error<\/p>\n        <h3>IGI has six rates, not five<\/h3>\n        <p>Almost every guide lists five and leaves out the <b>specific rate of 3.5 %<\/b>, which applies to buying a home intended for permanent residential letting, by a non-professional buyer, with a commitment to let for at least five years. Getting the rate wrong on an invoice can be put right; getting it wrong on a property purchase costs far more.<\/p>\n      <\/div>\n\n      <section>\n        <p class=\"sur\">General indirect tax<\/p>\n        <h2>The six IGI rates and what they cover<\/h2>\n        <div class=\"tablewrap\">\n          <table>\n            <thead><tr><th>Rate<\/th><th>Type<\/th><th>What it covers<\/th><\/tr><\/thead>\n            <tbody>\n              <tr><td class=\"tx\">4,5 %<\/td><td>General<\/td><td>The vast majority of goods and services.<\/td><\/tr>\n              <tr><td class=\"tx\">1 %<\/td><td>Reduced<\/td><td>Food products other than alcoholic drinks, water, books, newspapers and magazines, sanitary products.<\/td><\/tr>\n              <tr><td class=\"tx\">0 %<\/td><td>Super-reduced<\/td><td>Residential letting, medicines reimbursable by CASS, certain health and education services.<\/td><\/tr>\n              <tr><td class=\"tx\">2,5 %<\/td><td>Special<\/td><td>Transport and certain cultural services.<\/td><\/tr>\n              <tr><td class=\"tx\">3,5 %<\/td><td>Specific<\/td><td>Buying a home intended for permanent residential letting, subject to conditions.<\/td><\/tr>\n              <tr><td class=\"tx\">9,5 %<\/td><td>Increased<\/td><td>Banking and financial services.<\/td><\/tr>\n            <\/tbody>\n          <\/table>\n        <\/div>\n        <p style=\"margin-top:18px\">Two points that prevent costly mistakes. A 0 % rate is not an exemption: the zero rate gives the right to deduct the IGI you have paid, an exemption does not. And only medicines reimbursable by CASS fall at 0 %; the rest stay at the general rate.<\/p>\n      <\/section>\n\n      <section>\n        <p class=\"sur\">Income tax<\/p>\n        <h2>What you declare personally<\/h2>\n        <p>If you are an Andorran tax resident, you also declare your personal income. The scale is often read as three bands: 0 % up to \u20ac24,000, around 5 % up to \u20ac40,000, then 10 % above. In reality the law sets no such bands: it combines a personal allowance of \u20ac24,000, a rate of 10 %, and a relief of half capped at \u20ac800. It is that cap which puts the line at \u20ac40,000.<\/p>\n        <p>Investment income follows a separate regime, at <b>10 %<\/b> after a \u20ac3,000 allowance. Dividends paid by an Andorran company subject to corporate tax are exempt (art. 5.j of Llei 5\/2014). This base gets neither the personal allowance nor the relief: it is the classic trap in files involving dividends or capital gains.<\/p>\n      <\/section>\n\n      <section>\n        <p class=\"sur\">Your questions<\/p>\n        <h2>What we are asked most<\/h2>\n\n        <details>\n          <summary>What is the rate of corporate tax in Andorra?<\/summary>\n          <p>The general rate is 10 %, with no exemption threshold. A company making \u20ac24,000 of profit owes \u20ac2,400 and still has to file. The \u20ac24,000 minimum often quoted belongs to personal income tax and does not apply to companies.<\/p>\n        <\/details>\n\n        <details>\n          <summary>When must the corporate tax return be filed?<\/summary>\n          <p>In the month following the six months after your year end. For a 31 December year end, the deadline therefore falls in July. In addition, an interim payment equal to half of the previous year&#8217;s charge is due in the ninth month of the current year.<\/p>\n        <\/details>\n\n        <details>\n          <summary>How many IGI rates are there?<\/summary>\n          <p>Six, not five as most guides write. Alongside the general rate of 4.5 %, the reduced rate of 1 %, the super-reduced rate of 0 %, the special rate of 2.5 % and the increased rate of 9.5 %, there is a specific rate of 3.5 % for buying a home intended for permanent residential letting.<\/p>\n        <\/details>\n\n        <details>\n          <summary>Does the reduced 5 % rate for new companies still exist?<\/summary>\n          <p>No. That regime, which applied 5 % to the first band of profit for three years, was repealed for financial years opened from 2017. The window for the last beneficiaries closed in 2019. Many guides nonetheless still present it as a current advantage.<\/p>\n        <\/details>\n\n        <details>\n          <summary>Is a 0 % IGI rate the same as an exemption?<\/summary>\n          <p>No, and the difference matters. The zero rate gives the right to deduct the IGI you have paid on your purchases, whereas an exemption does not. For a business invoicing at the zero rate, that distinction directly changes the cash recoverable each quarter.<\/p>\n        <\/details>\n\n        <details>\n          <summary>Do I have to keep accounts if my company is just starting?<\/summary>\n          <p>Yes. The obligation does not depend on turnover, and commercial companies are bound in any case, precisely because of their form: a newly formed single-shareholder company is as liable as an established public company. Those accounts then underpin every return you file, and the renewal of your residency if you are a director.<\/p>\n        <\/details>\n      <\/section>\n\n      <div class=\"fin\">\n        <p class=\"sur\">In practice<\/p>\n        <h2>What we take care of<\/h2>\n        <p>We keep your accounts, prepare and file your IGI and corporate tax returns, calculate your instalment, and handle your personal income tax return as well as CASS registrations. Getting residency takes a few months; keeping it in order takes years. One point of contact, the same one year after year.<\/p>\n        <p style=\"margin-top:18px\"><a class=\"btn\" href=\"https:\/\/setupandorra.com\/en\/contact-2\/\">Let us talk about your situation<\/a><\/p>\n      <\/div>\n\n      <p class=\"src\">Sources: Llei 95\/2010 de l&#8217;impost sobre societats, Llei 11\/2012 de l&#8217;impost general indirecte and its articles 57 to 60 ter, Llei 5\/2014 de l&#8217;impost sobre la renda de les persones f\u00edsiques, Llei 30\/2007 de la comptabilitat dels empresaris. The rates shown are those in force in 2026. Special regimes, filing thresholds and amounts revised each year are checked case by case: we go through them with you at your appointment.<\/p>\n\n    <\/div>\n\n    <aside class=\"aside\">\n      <div class=\"c dark\">\n        <p class=\"k\">Is your first year end coming up?<\/p>\n        <p>The ninth-month instalment and the return are prepared ahead of the deadline, not the month before. We look at your real timetable from your year-end date.<\/p>\n        <a class=\"btn\" href=\"https:\/\/setupandorra.com\/en\/contact-2\/\">Book a meeting<\/a>\n      <\/div>\n      <div class=\"c\">\n        <p class=\"k\">Key points<\/p>\n        <ul class=\"f\">\n          <li><b>10 %<\/b>corporate tax, with no threshold<\/li>\n          <li><b>6<\/b>IGI rates, not five<\/li>\n          <li><b>7 months<\/b>after year end to file<\/li>\n          <li><b>50 %<\/b>of the previous year&#8217;s tax as an instalment<\/li>\n        <\/ul>\n      <\/div>\n      <div class=\"c\">\n        <p class=\"k\">Read next<\/p>\n        <p><a href=\"https:\/\/setupandorra.com\/en\/taxation-in-andorra\/\">Andorran tax<\/a> sets out each tax in turn. <a href=\"https:\/\/setupandorra.com\/en\/investing\/create-a-company\/\">Setting up a company<\/a> fixes your legal form and your financial year, and <a href=\"https:\/\/setupandorra.com\/en\/setup\/gestoria-in-andorra-professional-support\/\">what our gestoria covers<\/a> takes in the whole of the annual cycle.<\/p>\n      <\/div>\n    <\/aside>\n\n  <\/div>\n<\/div>\n<\/div>\n\n\n<style>\n.setup-maillage{font-family:'Jost','Helvetica Neue',Helvetica,Arial,sans-serif;font-weight:300;color:#102039;margin-top:10px;border-top:1px solid #E7DFD4;padding-top:30px}\n.setup-maillage h2{font-family:inherit;font-weight:200;font-size:clamp(21px,2.6vw,27px);line-height:1.2;margin:0 0 6px;color:#102039}\n.setup-maillage .sm-intro{color:#5A6880;font-size:17px;line-height:1.6;max-width:62ch;margin:0 0 24px}\n.setup-maillage .sm-cols{display:grid;grid-template-columns:repeat(auto-fit,minmax(230px,1fr));gap:0 30px}\n.setup-maillage .sm-cols > div{min-width:0}\n.setup-maillage h3{font-size:12px;letter-spacing:.1em;text-transform:uppercase;color:#5A6880;font-weight:400;margin:0 0 10px;padding-bottom:7px;border-bottom:1px solid #E7DFD4}\n.setup-maillage ul{list-style:none;margin:0 0 26px;padding:0}\n.setup-maillage ul li{margin-bottom:9px;line-height:1.45}\n.setup-maillage a{color:#102039;text-decoration:none;border-bottom:1px solid #E7DFD4;font-size:16px}\n.setup-maillage a:hover{border-bottom-color:#F73100}\n<\/style>\n<div class=\"setup-maillage\">\n<h2>Taking the running of your Andorran company further<\/h2>\n<p class=\"sm-intro\">The accounts of an Andorran company are kept in step with its legal status, its tax regime and the social obligations of its directors. These pages cover each of those.<\/p>\n<div class=\"sm-cols\">\n<div><h3>Company and obligations<\/h3><ul>\n<li><a href=\"https:\/\/setupandorra.com\/estimer-mon-installation\/\">Estimate my move to Andorra<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/create-a-company\/\">Setting up a company in Andorra<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/create-a-company\/types-of-companies-conditions-and-procedures\/\">Company types, conditions and procedures<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/create-a-company\/statutes-forms-of-remuneration-and-tax-rules\/\">Articles, remuneration and tax rules<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/benefits\/accompanying-to-the-creation-of-society\/\">Support with company formation<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/taxation-in-andorra\/\">Tax in Andorra: the guide<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/benefits\/heritage-management\/\">Wealth management<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/benefits\/partners\/\">Our partners<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/setup\/gestoria-in-andorra-professional-support\/\">What our gestoria covers<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/setup\/\">Our gestoria in Andorra<\/a><\/li>\n<\/ul><\/div>\n<div><h3>Banking and wealth<\/h3><ul>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/bank-investments\/\">Banking investments in Andorra<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/bank-investments\/andorran-banks\/\">Andorran banks<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/bank-investments\/our-support\/\">Our support on investments<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/property-investment\/\">Property investment<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/property-investment\/type-of-property-conditions-and-procedures\/\">Property types, conditions and procedures<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/property-investment\/residence-and-tax-rules\/\">Residency and property tax rules<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/investing\/property-investment\/our-assistance\/\">Our support on investment<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/setup\/the-society\/\">Setup Andorra, the company<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/setup\/the-founder\/\">The founder<\/a><\/li>\n<\/ul><\/div>\n<div><h3>Residency and daily life<\/h3><ul>\n<li><a href=\"https:\/\/setupandorra.com\/en\/expatriating\/\">Moving to Andorra<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/expatriating\/residency-status-conditions-procedures-and-taxation\/\">Resident status: conditions and procedures<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/expatriating\/our-support\/\">Our relocation support<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/expatriating\/the-advantages-for-the-web-professions\/\">Benefits for digital professions<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/live\/\">Living in Andorra<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/live\/health-and-social-security-system\/\">Healthcare and social provision<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/live\/managing-daily-life-and-coaching-staff\/\">Day-to-day and household management<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/frequently-asked-questions\/\">Frequently asked questions<\/a><\/li>\n<li><a href=\"https:\/\/setupandorra.com\/en\/news\/\">Andorra news<\/a><\/li>\n<\/ul><\/div>\n<\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Gestoria \u00b7 accounting and tax obligations Accounting and tax returns in Andorra An Andorran company 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