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Andorra vs Spain
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡¦πŸ‡© Andorra
vs
πŸ‡ͺπŸ‡Έ Spain
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–10%
10% top; EU alignment reforms ongoing
No change
19–47%
National rates stable; community variation continues
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4.5%
4.5% IGI β€” lowest in Europe
No change
4–21%
Basic food VAT returning toward normal rates
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10% IS; EU Association Agreement compliance
No change
25%
25% standard; digital services levy discussions
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT β€” key differentiator
No change
19–28%
Progressive savings tax maintained
No change
Social Security & Payroll
Social Security / Payroll
~21.5%
CASS stable; healthcare system well-funded
No change
~37.2%
MEI surcharge continues gradual increase to 2032
β–² +0.2pp vs 2025
State, Regional & Local Taxes

πŸ‡¦πŸ‡© 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.

πŸ‡ͺπŸ‡Έ Spain β€” Autonomous Community & Municipal Taxes

Spain's 17 autonomous communities set their own half of income tax. Madrid applies significant reductions while Catalonia has higher regional rates. The Basque Country and Navarre have special tax regimes (concierto econΓ³mico). Municipal taxes include IBI (property tax) and IAE (business activity tax). Effective top rates (national + regional) range from ~43% (Madrid) to ~54% in some communities.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Andorra vs Spain: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ͺπŸ‡Έ Spain has a higher top income tax rate (0–10% vs 19–47%). πŸ‡¦πŸ‡© Andorra is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Spain has a higher consumption tax (4.5% vs 4–21%).

🏒 Corporate Tax: πŸ‡¦πŸ‡© Andorra offers a lower corporate rate (10% vs 25%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¦πŸ‡© Andorra taxes investment gains at a lower rate (0% vs 28%), benefiting investors.

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