Andorra vs Norway
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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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.
๐ณ๐ด Norway โ Municipal Taxes & Resource Rent
Norway's 15 counties and 356 municipalities set local income tax within a national band; max combined rate ~22%. Norway has unique resource rent taxes on petroleum (78%) and hydropower (67% from 2024). Wealth tax (formuesskatt) applies at 1%โ1.1% on net assets above NOK 1.7M. Dividends above a risk-free return are taxed at ~37.84% effective.
Andorra vs Norway: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ณ๐ด Norway has a higher top income tax rate (0โ10% vs 22โ47.4%). ๐ฆ๐ฉ Andorra is more favourable for high earners.
๐ VAT/Sales Tax: Norway has a higher consumption tax (4.5% vs 12โ25%).
๐ข Corporate Tax: ๐ฆ๐ฉ Andorra offers a lower corporate rate (10% vs 22%), which can influence business location decisions.
๐ Capital Gains: ๐ฆ๐ฉ Andorra taxes investment gains at a lower rate (0% vs 37.84%), benefiting investors.