Andorra Tax on Dividends

How are dividends distributed in Andorra? The allocation of dividends in Andorra varies depending on whether it is to a resident or non-resident. In this article, we fully explain how Andorra’s dividend tax works.

Distribution of dividends tax to Andorra residents

In Andorra, the Personal Income Tax law charges the income obtained by taxpayers as long as it can be classified as taxable income. However, the government has introduced a series of tax exemptions, provided that the requirements in the regulations are met. The most noteworthy full tax exemptions are:

Distribution of dividends tax to non-residents

The tax on the income of non-tax residents is a direct tax levied on income obtained in Andorra by individuals or legal entities that are not tax residents. They are, therefore, not subject to the tax: