Corporate Income Tax in Andorra: Rate, Regimes and Conditions
- Updated on
- La rédaction
The short answer
Andorran companies are subject to corporate income tax at a single moderate rate, with specific regimes depending on the activity. This low rate is only worthwhile for a company with real activity and substance in Andorra.
The rate
| Item | Value |
|---|---|
| General corporate income tax rate | 10 %verified on 09/10/2026 |
What determines the tax
- The accounting result adjusted for tax rules.
- The nature of the activity (some sectors have their own rules).
- Transactions with related parties, subject to transfer pricing rules.
Substance and effective management
Going further
- Legal forms and the minimum capital of an SL: 3,000 €verified on 09/10/2026.
- Dividends: what happens when the company distributes?
- Accounting and gestoria.
The rate and its scope
The general corporate income tax rate is 10 %verified on 09/10/2026 (article 41 of Llei 95/2010). Collective investment undertakings are subject to a rate of 0 %verified on 09/10/2026. Other special regimes exist depending on the activity: check them against the consolidated text before any calculation.
The participation exemption
Dividends and capital gains on shareholdings are exempt if the holding reaches 5 %verified on 12/10/2026, without interruption for 12 monthsverified on 12/10/2026, and if the non-resident subsidiary bears tax of at least 50 %verified on 12/10/2026 of the general rate (a condition deemed met for countries with a treaty). See the details of the conditions and the holding company guide.
From accounting to tax
Tax is calculated on the accounting result, adjusted for tax rules. The accounts are drawn up within 6 monthsverified on 12/10/2026 after the year end and filed with the register within the month following their approval: see accounting and gestoria. The exact filing and payment deadlines should be confirmed with your gestor.
The total cost of an activity
Corporate income tax is only one line. Social contributions, IGI, registration taxes and fees also weigh: the employee cost and tax simulator works out the whole for a simple case.
Comparing with France
The normal French rate is 25 %verified on 09/10/2026. The gap alone is not enough to justify an Andorran company: the partner's residence, effective management and anti-abuse rules decide what is taxable where. See holding company and the French tax authorities.
Work out your own case
Free simulators, built on the official values of this page.
- Andorra IRPF simulator (employment, rental and savings income)Estimate your income tax with the tax-free minimum, the bonus relief and family allowances.Open
- Cost of an employee and corporate tax in Andorra: calculatorEmployer contributions, net pay before tax and a company's corporate tax.Open
- Leaving France for Andorra: are you still a French tax resident?The three criteria for French tax residence, in a few questions.Open
Frequently asked questions
What is the corporate income tax rate?
The general rate in force is shown in the table on this page, with its verification date.
Is an Andorran company owned by a French national taxed in France?
It depends on the shareholder's tax residence, the place of effective management and French anti-abuse rules. Never assume that the company escapes France.
What accounting obligations apply?
Keeping compliant accounts, approving the accounts, periodic returns. A gestor generally handles this. See accounting and gestoria.
Going further
Official sources
This information is general and is not personalised legal, tax or financial advice. It is verified as of the date shown and may change.