The year 2018 is about to come to an end with important changes that went into effect. Andorra has developed its fiscal system to adopt to the requirements of BEPS by the OECD. Since 2018 the special fiscal regimes for international trading and cashpooling no longer are applicable and the special regime for the international exploitation of intangibles also know as patent box has been modified in the sense to bring further substance to Andorra. You may read about those changes in our respective articles.

Taxation in Andorra for 2019

For the new year of 2019 we are not expecting important changes that will affect the overall rate of personal income and corporate taxation in Andorra.

However as the Andorran taxation system is slowly maturing with its corporate tax and personal income tax only introduced since a few years we may expect fine tuning of certain legal provisions that affect deductions and or specific circumstances such as environment, transportation as well as special taxation related matters.

This should have little effect on most foreign investors which generally are concerned mostly with the elements of corporate, personal income tax and indirect taxation such as the IGI / VAT.

The OECD has officially recognized the efforts made by the Andorran government to adjust its taxation by eliminating or modifying its special taxation regimes and therefore no longer representing any harmful tax competition.

This move by Andorra with the blessing of the OCDE will give additional legal security while at the same maintaining substantial competitive advantages over neighboring jurisdictions in and outside of the European Union. The fiscal year of 2019 will be a year of consolidation for the Andorra tax framework with stability and potentially the right moment to start your project.

We look forward to accompany you in the new year of 2019 and wish you happy holidays and best of success for the coming year hopefully in Andorra !