Andorra Taxation Features:

1. 10% Personal Income Tax: Andorra is renowned for its attractive for its personal income tax policy, providing residents with substantial savings, exemptions up to 40.000€.

2. Tax-Free Capital Gains: In Andorra, income generated from the sale of stocks and other securities is exempt from capital gains tax. This means that any profit made from the appreciation of your stock investments remains entirely yours without being subject to taxation.

3. Enhanced Investment Returns: With no capital gains tax, investors in Andorra enjoy the full benefit of their investment gains. This can significantly enhance overall returns, providing a more lucrative investment environment compared to regions with capital gains taxation.

4. Encourages Long-Term Investment: The absence of capital gains tax fosters a climate conducive to long-term investing. Investors are not pressured by short-term tax implications, allowing them to make strategic investment decisions aligned with their financial goals.

5. Attracts International Investors: Andorra's zero-tax approach on stock gains makes it an attractive destination for international investors seeking favorable investment conditions. This can contribute to the growth of the local financial market and encourage foreign capital inflow.

6. Simplicity in Tax Planning: The straightforward tax structure regarding stock investments simplifies tax planning for investors. Without the complexity of capital gains tax calculations, investors can focus on their investment strategies and financial objectives.

7. Low Corporate Tax Rates: The principality offers competitive corporate tax rates ( Maximum 10% ), making it an appealing destination for businesses seeking favorable fiscal conditions. Contact us for more details

8. No Inheritance or Gift Taxes: Andorra stands out for its absence of inheritance and gift taxes, facilitating smooth wealth transfer across generations.

9. Real Estate Tax: 4%/ 4,5% is payed to the government in all transactions, although you can deduct it if you invest as a corporation, which is very easy to set up. From 2024 foreigners pay a 3% tax unless they are residents for more than 3 years.

10. VAT Rates: Andorra maintains moderate Value Added Tax (VAT) rates, contributing to a balanced and efficient tax system. 4,5%.

11.  

12.  

Credit Ratings:

1. S&P Ratings (Standard & Poor's):

   • S&P ratings reflect Andorra's stable economic outlook and prudent financial management, contributing to its creditworthiness.

2. Fitch Ratings:

   • Fitch ratings highlight Andorra's robust economic performance, fiscal discipline, and overall financial stability.

Double Taxation Agreements:

1. Bilateral Agreements: Andorra has strategically entered into double taxation agreements with 14 countries, ensuring that residents are not subjected to dual taxation on their income.

2. International Cooperation: These agreements foster international cooperation, promote cross-border investments, and provide clarity on tax obligations for individuals and businesses.

Note: For the most current and accurate information, it is recommended to refer to official government sources and financial institutions, as economic conditions and regulations may evolve over time