Netherlands vs Andorra
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ณ๐ฑ Netherlands โ Municipal & Water Board Taxes
The Netherlands is a unitary state โ income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.
๐ฆ๐ฉ Andorra โ Parish Taxes & Local Levies
Andorra's 7 parishes (parrรฒquies) 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.
Netherlands vs Andorra: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ณ๐ฑ Netherlands has a higher top income tax rate (9.32โ49.5% vs 0โ10%). ๐ฆ๐ฉ Andorra is more favourable for high earners.
๐ VAT/Sales Tax: Netherlands has a higher consumption tax (9โ21% vs 4.5%).
๐ข Corporate Tax: ๐ฆ๐ฉ Andorra offers a lower corporate rate (10% vs 25.8%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ฉ Andorra taxes investment gains at a lower rate (0% vs 38%), benefiting investors.