Andorra is introducing income tax for the first time, and details are available here: Andorra Income Tax There is no income tax in Andorra on individuals or corporations. Employees pay social security taxes at rates of 5-9% on their salaries; employers pay social security taxes of 13% on their employees' salaries. In October 1991, a form of value-added tax was introduced at a general rate of 4% on most goods and at higher rates of 8% and 12%, respectively, for special goods and for deemed luxury goods. There are also taxes on the import of certain goods. The 1992 budget law introduced a registration tax on certain activities, to provide 8.6% of government revenues, as well as a tax on electricity consumption and telephone services at a rate of 10%, to contribute 1.6% of government revenues.
New residents who were previously resident in Spain are treated by the Spanish tax authorities as tax resident in Spain for five tax-years after their emigration to Andorra.