2025 tax comparison shows Andorra's rates far lower than Spain's
A widely shared 2025 table contrasts main taxes in Andorra and Spain, highlighting much lower corporate, personal and indirect rates in Andorra.
Key Points
- Andorra corporate tax 10%, with special regimes potentially reducing it to 2%.
- Top personal income tax: Andorra capped at 10% vs Spain’s much higher top rates (around 47% in some brackets).
- Dividends/withholding: Andorra 0% local/10% other, no non-resident withholding; Spain dividends 19–28% and 19% non-resident withholding.
- Indirect/wealth taxes: Andorra IGI 4.5%, generally no wealth or inheritance/gift taxes; Spain VAT 21% and wealth/inheritance rules vary by autonomous community.
A tax comparison circulated on social media has highlighted the differences between the fiscal systems of Andorra and Spain. The table, which summarises the main taxes in force in 2025, shows substantial divergences in the burden on companies and individuals and in the presence or absence of certain taxes.
According to the table, Andorra’s corporate tax rate is 10%, with the possibility of reductions to 2% under special regimes. The comparison contrasts this with figures for Spain that show much higher top marginal rates, reaching around 47% in the highest brackets presented.
The gap in maximum personal income tax is also notable: Andorra sets a cap of 10% on the top rate, while in Spain the top rate varies by autonomous community and can substantially exceed that level in some jurisdictions.
Treatment of dividends differs markedly. In Andorra, dividends are taxed at 0% if they are local and at 10% in other cases; in Spain, dividend taxation ranges from 19% to 28%. The table also notes that Andorra does not apply withholding for non-residents, whereas Spain has a 19% withholding for non-resident payments.
Indirect taxation contrasts sharply as well: Andorra’s general indirect tax (IGI) is shown at 4.5%, well below Spain’s 21% VAT rate. Additionally, Andorra does not levy a wealth tax nor—in general—inheritance and gift taxes, while these levies apply in Spain according to the rules of each autonomous community.
The table has been widely shared and used in ongoing debates about tax pressure and the attractiveness of Andorra as a destination for companies and tax residents.
Original Sources
This article was aggregated from the following Catalan-language sources: