Andorra vs Denmark
Tax Rate Comparison
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π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π¦π© 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.
π©π° Denmark β Municipal Income Tax
Denmark's 98 municipalities set local income tax (kommuneskat) at ~22.8%β27.8%. The national state tax adds 15% (top bracket). Combined rates including AM contribution (8% of gross) make Denmark one of the world's highest-tax nations at ~55β56% effective top. Church tax (~0.7%) applies to members. Property value tax is nationally set.
Andorra vs Denmark: Key Tax Differences (2026)
π° Income Tax: π©π° Denmark has a higher top income tax rate (0β10% vs ~55.9%). π¦π© Andorra is more favourable for high earners.
π VAT/Sales Tax: Denmark has a higher consumption tax (4.5% vs 25%).
π’ Corporate Tax: π¦π© Andorra offers a lower corporate rate (10% vs 22%), which can influence business location decisions.
π Capital Gains: π¦π© Andorra taxes investment gains at a lower rate (0% vs 42%), benefiting investors.