Principality of Andorra recently has created a tax direct system. This system only tax income tax and corporation tax as well as local tax on increased value of real state.
Our state has not established any direct taxing excess profit tax, inheritance tax, accession tax neither capital gains tax, except tax referred above about real state value.
Principality of Andorra recently has created a tax indirect system. The main Indirect tax are IGI which taxes goods, services and importation as well as ITP which taxes property transmission. Andorra has also minor local indirect taxes.
A tax of 2,5% of the real value of the property assigned when there is a capital transfer of real estate or the assignment of real rights on real estate.
CUSTOMS DUTY ON IMPORTS
The application (since the signature of the agreement on a customs union with the EC) of the same Common Custom Tariff as that in force on its territory and direct collection by Andorran customs on imports of goods coming from non-EC third party countries which are not in free circulation on the territory of the EC.
One should note the application of the system of external and internal community transit (respectively T1 and T2) and of certain customs economic systems such as customs depot and active perfection.
One should also note that there are exceptions made in favour of the Principality of Andorra in the matter of contingents in force in the European Community governing textile imports from non-EC third party countries.
- Government taxes on the use of electricity, telephones, vehicles and registration of commercial brand names.
- Single sum government taxes on the economic activity of non-wage earners.