AD · EuropeIS · Europe
Andorra vs Iceland: tax rates compared
Iceland has an income tax rate of 46.3%, 36.3pp above Andorra's 10%. The 200-country average is 28%: Andorra sits below it, Iceland sits above it. Andorra's figure is dated 2023-01-19 and Iceland's 2025-01-01, so the two rates come from different data vintages.
Verified data covers four of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | AD | IS | Difference |
|---|---|---|---|
| Income Tax | 10% | 46.3% | IS +36.3 pplargest gap |
| Corporate Tax | 10% | 20% | IS +10 pp |
| VAT | 4.5% | 24% | IS +19.5 pp |
| Capital Gains Tax | 0% | 22% | IS +22 pp |
Income Tax
| Country | Rate | Source |
|---|---|---|
| Andorra | 10% | Source: Consell General (Parliament of Andorra) — Llei 5/2023, del 19 de gener, de mesures per a la reforma de la imposició directa · as of 2023-01-19 |
| Iceland | 46.3% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −36.3 pp | Iceland higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Andorra | 10% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Iceland | 20% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −10 pp | Iceland higher |
Iceland has a corporate tax rate of 20%, 10pp above Andorra's 10%. The 201-country average is 22.6%: both sit below it.
VAT
| Country | Rate | Source |
|---|---|---|
| Andorra | 4.5% | Source: Butlletí Oficial del Principat d'Andorra (BOPA) — Llei 11/2012, de l'impost general indirecte (text refós) · as of 2014-07-30 |
| Iceland | 24% | Source: PWC Worldwide Tax Summaries — Iceland (Corporate, Other taxes) · as of 2026-06-22 |
| Difference | −19.5 pp | Iceland higher |
Iceland has a VAT rate of 24%, 19.5pp above Andorra's 4.5%. The 181-country average is 15%: Andorra sits below it, Iceland sits above it. Andorra's figure is dated 2014-07-30 and Iceland's 2026-06-22, so the two rates come from different data vintages.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| Andorra | 0% | Source: Consell General (Andorra) — Butlletí Oficial del Principat d'Andorra (BOPA), Llei 5/2023, del 19 de gener, amending the Personal Income Tax Law (Llei 5/2014), Article 5(k) · as of 2023-01-19 |
| Iceland | 22% | Source: Skatturinn (Iceland Revenue and Customs) — Key rates and amounts 2026 · as of 2026-01-01 |
| Difference | −22 pp | Iceland higher |
Iceland has a capital gains tax rate of 22%, 22pp above Andorra's 0%. The 175-country average is 10.3%: Andorra sits below it, Iceland sits above it. Andorra's figure is dated 2023-01-19 and Iceland's 2026-01-01, so the two rates come from different data vintages.
Not covered for both countries yet: Crypto Tax, Wealth Tax.