AD · EuropeIT · Europe
Andorra vs Italy: tax rates compared
Between the two, Italy's income tax rate (47.2%) tops Andorra's (10%) by 37.2pp. The 200-country average is 28%: Andorra sits below it, Italy sits above it. Andorra's figure is dated 2023-01-19 and Italy'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 | IT | Difference |
|---|---|---|---|
| Income Tax | 10% | 47.2% | IT +37.2 pplargest gap |
| Corporate Tax | 10% | 27.8% | IT +17.8 pp |
| VAT | 4.5% | 22% | IT +17.5 pp |
| Capital Gains Tax | 0% | 26% | IT +26 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 |
| Italy | 47.2% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −37.2 pp | Italy higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| Andorra | 10% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Italy | 27.8% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | −17.8 pp | Italy higher |
Between the two, Italy's corporate tax rate (27.8%) tops Andorra's (10%) by 17.8pp. The 201-country average is 22.6%: Andorra sits below it, Italy sits above 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 |
| Italy | 22% | Source: PWC Worldwide Tax Summaries — Italy (Corporate, Other taxes) · as of 2026-07-13 |
| Difference | −17.5 pp | Italy higher |
Between the two, Italy's VAT rate (22%) tops Andorra's (4.5%) by 17.5pp. The 181-country average is 15%: Andorra sits below it, Italy sits above it. Andorra's figure is dated 2014-07-30 and Italy's 2026-07-13, 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 |
| Italy | 26% | Source: PWC Worldwide Tax Summaries — Italy (Individual, Income determination) · as of 2019-01-01 |
| Difference | −26 pp | Italy higher |
Between the two, Italy's capital gains tax rate (26%) tops Andorra's (0%) by 26pp. The 175-country average is 10.3%: Andorra sits below it, Italy sits above it. Andorra's figure is dated 2023-01-19 and Italy's 2019-01-01, so the two rates come from different data vintages.
Not covered for both countries yet: Crypto Tax, Wealth Tax.