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Andorra vs Germany
Tax Rate Comparison

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

πŸ‡¦πŸ‡© Andorra
vs
πŸ‡©πŸ‡ͺ Germany
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
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
4.5%
4.5% IGI β€” lowest in Europe
No change
7–19%
Standard 19% unchanged
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10% IS; EU Association Agreement compliance
No change
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
Capital Gains Tax
Capital Gains Tax
0%
No CGT β€” key differentiator
No change
25%
Investment income reform proposals under review
No change
Social Security & Payroll
Social Security / Payroll
~21.5%
CASS stable; healthcare system well-funded
No change
~41.5%
Health insurance rising; pension base up
β–² +0.5pp 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‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

⚠️ 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 Germany: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (0–10% vs 14–45%). πŸ‡¦πŸ‡© Andorra is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (4.5% vs 7–19%).

🏒 Corporate Tax: πŸ‡¦πŸ‡© Andorra offers a lower corporate rate (10% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¦πŸ‡© Andorra taxes investment gains at a lower rate (0% vs 25%), benefiting investors.

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