{"id":1216,"date":"2018-09-22T06:00:00","date_gmt":"2018-09-22T04:00:00","guid":{"rendered":"https:\/\/dev.setupandorra.com\/\/?p=1216"},"modified":"2021-02-17T10:01:20","modified_gmt":"2021-02-17T09:01:20","slug":"tax-system-in-andorra-the-personal-income-tax-on-natural-persons-irpf","status":"publish","type":"post","link":"https:\/\/setupandorra.com\/en\/tax-system-in-andorra-the-personal-income-tax-on-natural-persons-irpf\/","title":{"rendered":"Tax system in Andorra: the personal income tax on natural persons (IRPF)"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Andorra is a country known for its simple and advantageous tax system. The general tax rate on incomes is 10% at the most. Essential apparatus of the tax system in Andorra, the personal income tax on natural persons (IRPF) came into effect in 2015. Who has to pay it, what is the level of contributions, what are the reductions and exemptions possible? We review these different questions hereunder.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Tax system in Andorra: the personal income tax on natural persons (IRPF)<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Definition<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Under the tax system regime in Andorra, the IRPF, Personal Income Tax on Natural Persons, is due by individuals that have the status of&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/expatriate\/residency-status-conditions-procedures-and-taxation\/\">tax resident in the Principality<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It affects all the incomes taxable irrespectively of their nature and source as well as of the taxpayer\u2019s registration.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Andorran income tax is then debited on the taxpayer\u2019s whole global income. Actually, it incorporates incomes arising from economic and commercial activities that, prior to 2014, were subject to the tax on economic activities\u2019 benefits (IAE).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Who must pay the IRPF?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">How does the Andorran tax system define the taxpayer that has to pay the IRPF? Here is the answer! In Andorra, the income tax on natural persons must be paid by:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>every person living in the Principality for more than 183 days per year,<\/li><li>every person justifying one or more economic activities (or benefiting from economic interests) on the territory and taking advantage of it.<\/li><\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">Tax system in Andorra: the basis of the taxation on the income of the IRPF in details<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">In the Andorran tax system, the taxable incomes for the IRPF are defined in accordance with their origin and nature according to:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>the general basis: work income (salaries, treatments), real property income (exploitation of rental property, possible rights over these properties), economic activities income;<\/li><li>the basis of the saving: change of assets composition, capital gains (interests, insurance income, etc.).<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Let us clarify that the Andorran tax system excludes from the income tax system the free acquisitions such as donations or inheritance (there are no inheritance taxes). There is also no wealth tax in Andorra (ISF), as it is the case in other European countries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Moreover, there are agreements between France and Andorra in order to eliminate the double taxation, notably regarding the entrepreneurial activities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The applied rate and the payment rules<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">A maximal tax rate of 10%<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The Andorran tax system is clear and transparent. The tax rate on the income in Andorra la Vella and the whole Principality of the IRPF is 10% at the most.<br>This rate is reduced to 5% for the people that can prove that their income is between \u20ac24 00 and \u20ac40 000.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The moment of the payment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Here again, the rules are very clear and do not leave room for interpretation. Every taxpayer has to file its tax return between April 1st and September 30th. This return takes into account the incomes received during the previous financial year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The retention on the work incomes<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Since 2015, company bosses and employers participate actively to the Andorran tax system. They are asked to practice the appropriate retention of the work income tax on behalf of the ministry in charge of finances, through the&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/news\/cass-doctors-hospitals-the-healthcare-system-for-expatriates-in-andorra\/\">CASS (\u201cCaixa Andorrana de Seguretat Social\u201d)<\/a>.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The system of deduction realized by the employer<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">In the Andorran tax system, the&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/news\/all-you-need-to-know-about-the-remuneration-and-taxation-of-entrepreneurs-in\/\">head of the company<\/a>&nbsp;is in charge of certain deductions related to the IRPF.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The scale applied to the deduction rate, established according to the salary received by the workers, is as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>from \u20ac0 to \u20ac27 000: 0&nbsp;%<\/li><li>from \u20ac27 000 to \u20ac30 000 : 0,5&nbsp;%<\/li><li>from \u20ac30 000 to \u20ac40 000 : 1&nbsp;%<\/li><li>from \u20ac40 000 to \u20ac50 000 : 2&nbsp;%<\/li><li>from \u20ac50 000 to \u20ac60 000 : 3&nbsp;%<\/li><li>from \u20ac60 000 to \u20ac70 000 : 4&nbsp;%<\/li><li>from \u20ac70 000 to \u20ac80 000 : 4,5&nbsp;%<\/li><li>from \u20ac80 000 to \u20ac90 000 : 5&nbsp;%<\/li><li>from \u20ac90 000 to \u20ac100 000 : 5,5&nbsp;%<\/li><li>from \u20ac100 000 to \u20ac120 000 : 6&nbsp;%<\/li><li>from \u20ac120 000 to \u20ac150 000 : 6,5&nbsp;%<\/li><li>from \u20ac150 000 and more: 7&nbsp;%<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In cases where the net income is inferior to \u20ac24 000, the Andorran taxpayer does not have to disclose his personal economic information to the Andorran tax administration.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>If you wish to know more about the tax system in Andorra related to the IRPF, income tax on natural persons, do not hesitate&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/contact\/\">to contact Set Up<\/a>,&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/setup\/the-society\/\">Private Concierge<\/a>&nbsp;Service specialized in the&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/benefits\/accompaniment-in-the-expatriation\/\">expatriation in Andorra<\/a>. We will also facilitate your&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/expatriate\/our-support\/\">administrative procedures<\/a>&nbsp;and help you with the&nbsp;<a href=\"https:\/\/setupandorra.com\/\/en\/live\/housing\/\">search for an accommodation<\/a>. See you soon in the Principality!<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Andorra is a country known for its simple and advantageous tax system. The general tax rate on incomes is 10% [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[],"tags":[],"class_list":["post-1216","post","type-post","status-publish","format-standard","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Tax system Andorra \u2013 Personal income tax on natural persons, IRPF<\/title>\n<meta name=\"description\" content=\"Discover one of the major components of the taxation system in Andorra with a presentation of the personal income tax on natural persons (IRPF).\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/setupandorra.com\/en\/tax-system-in-andorra-the-personal-income-tax-on-natural-persons-irpf\/\" 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The general tax rate on incomes is 10% [&hellip;]","_links":{"self":[{"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/posts\/1216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/comments?post=1216"}],"version-history":[{"count":0,"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/posts\/1216\/revisions"}],"wp:attachment":[{"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/media?parent=1216"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/categories?post=1216"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/setupandorra.com\/en\/wp-json\/wp\/v2\/tags?post=1216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}