1. Income tax in Andorra is fixed at 10% (0% if the income does not exceed 24000 euros per year). In Spain the progressive income tax rate varies from 19% up to 45%.
2. Indirect taxes (VAT) in Andorra are at 4.5%. Spain VAT rates vary from 4% to 21% on basic products. Basic foodstuffs, medicines and transport are taxed 10%.
3. The tax burden on businesses in Andorra is one of the lowest in Europe. Companies’ profits are taxed at 10% with an opportunity to reduce to 2% (if the relevant requirements are met). Andorra is listed among the 25 best countries in the world for business, according to the International Living Index. In Spain, the tax on company profits is 25% with the opportunity to reduce to 15%.
4. Residence permit in Spain by investments. Business immigration to Spain and Andorra. This is where there is the possibility of the legalization of the family and the acquisition of active residency in Andorra, with the right to work (Compte Propi) when investing in a business for less than 10,000 Euro “turnkey” for a family of four people. In Spain the rate of “entry” into this category starts at 2 million euros.
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