Andorra vs Panama
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇦🇩 Andorra — Parish Taxes & Local Levies
Andorra's 7 parishes (parròquies) 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.
🇵🇦 Panama — 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%–2.1%), and service fees. Panama City has the highest commercial licence fees. Panama uses a territorial tax system — income earned outside Panama is not taxed. This has made Panama a significant financial and trading hub. The Colón 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)
💰 Income Tax: 🇵🇦 Panama has a higher top income tax rate (0–10% vs 0–25%). 🇦🇩 Andorra is more favourable for high earners.
🛒 VAT/Sales Tax: Panama has a higher consumption tax (4.5% vs 7%).
🏢 Corporate Tax: 🇦🇩 Andorra offers a lower corporate rate (10% vs 25%), which can influence business location decisions.
📈 Capital Gains: 🇦🇩 Andorra taxes investment gains at a lower rate (0% vs 10%), benefiting investors.