Andorra vs Panama
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π¦π© Andorra β Parish Taxes & Local Levies
Andorra's 7 parishes (parrΓ²quies) levy communal taxes including building and land taxes, commercial licence fees, and local service charges. Andorra only introduced a personal income tax (IRPF) in 2015 and corporate tax (IS) in 2012. This micro-state in the Pyrenees between France and Spain remains a significant tax haven due to very low VAT and no inheritance or capital gains tax. It has an Association Agreement with the EU.
π΅π¦ Panama β Municipal & Corregimiento Taxes
Panama's 10 provinces and 81 districts have municipalities that levy commercial licence fees (Tasa Unica), property tax (impuesto de inmuebles at 0%β2.1%), and service fees. Panama City has the highest commercial licence fees. Panama uses a territorial tax system β income earned outside Panama is not taxed. This has made Panama a significant financial and trading hub. The ColΓ³n Free Zone is the world's second largest free trade zone. Panama is working to exit FATF grey lists and improve tax transparency.
Andorra vs Panama: Key Tax Differences (2026)
π° Income Tax: π΅π¦ Panama has a higher top income tax rate (0β10% vs 0β25%). π¦π© Andorra is more favourable for high earners.
π VAT/Sales Tax: Panama has a higher consumption tax (4.5% vs 7%).
π’ Corporate Tax: π¦π© Andorra offers a lower corporate rate (10% vs 25%), which can influence business location decisions.
π Capital Gains: π¦π© Andorra taxes investment gains at a lower rate (0% vs 10%), benefiting investors.