Private client—Andorra—Q&A guide

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Private client—Andorra—Q&A guide
  • 1. How does an individual become taxable in your jurisdiction?
  • 2. What, if any, taxes apply to an individual’s income?
  • 3. What, if any, taxes apply to an individual’s capital gains?
  • 4. What, if any, taxes apply if an individual makes lifetime gifts?
  • 5. What, if any, taxes apply to an individual’s transfers on death and to his or her estate following death?
  • 6. What, if any, taxes apply to an individual’s real property?
  • 7. What, if any, taxes apply on the import or export, for personal use and enjoyment, of assets other than cash by an individual to your jurisdiction?
  • 8. What, if any, other taxes may be particularly relevant to an individual?
  • 9. What, if any, taxes apply to trusts or other asset-holding vehicles in your jurisdiction, and how are such taxes imposed?
  • More...

Private client—Andorra—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to private client in Andorra published as part of the Lexology Getting the Deal Through series by Law Business Research (published: September 2020).

Authors: Cases & Lacambra Abogados SLP—Marc Ambrós; Júlia Pons

1. How does an individual become taxable in your jurisdiction?

The Personal Income Tax Act 5/2014, 24 April (PIT) sets the tax liability by personal obligation. Therefore, residence is key to determine the tax liability of an individual and entails the obligation to include all income obtained worldwide.

The PIT sets forth two rules and a presumption to consider an individual as tax resident in Andorra:

  1. Permanence test: when the individual stays more than 183 days per calendar year in Andorra except when individuals prove that they have their tax residence in another country. Occasional absences shall be included to calculate the staying period.

  2. Centre of economic interest test: when the main place of business or income of the individual is directly or indirectly located in Andorra.

Finally, unless there is clear evidence by the individual demonstrating otherwise, the PIT presumes that if the non-legally separated husband or spouse and minor children are tax resident in Andorra, the individual will be considered also as tax resident in such jurisdiction.

2. What, if any, taxes apply to an individual’s income?

All the worldwide income, including capital gains of an individual

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