AD · EuropePW · Oceania

Andorra vs Palau: tax rates compared

Palau has an income tax rate of 12%, 2pp above Andorra's 10%. The 200-country average is 28%: both sit below it. Andorra's figure is dated 2023-01-19 and Palau's 2026-07-20, so the two rates come from different data vintages.

Verified data covers three of the six tracked tax types for both countries; every rate below is cited to its source and dated.

At a glance

0102030405060Income10%12%VAT4.5%10%Capital Gains0%
three shared taxes, side by side
Tax AD PWDifference
Income Tax10%12%PW +2 pp
VAT4.5%10%PW +5.5 pplargest gap
Capital Gains Tax0%0%match

Income Tax

Income Tax, side by side
CountryRateSource
Andorra10%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
Palau12%Source: Government of Palau — Bureau of Revenue and Taxation, Wages and Salary Tax · as of 2026-07-20
Difference−2 ppPalau higher

VAT

VAT, side by side
CountryRateSource
Andorra4.5%Source: Butlletí Oficial del Principat d'Andorra (BOPA) — Llei 11/2012, de l'impost general indirecte (text refós) · as of 2014-07-30
Palau10%Source: Palau Bureau of Revenue & Taxation — Palau Goods and Services Tax (PGST) · as of 2023-01-01
Difference−5.5 ppPalau higher

Palau has a VAT rate of 10%, 5.5pp above Andorra's 4.5%. The 181-country average is 15%: both sit below it. Andorra's figure is dated 2014-07-30 and Palau's 2023-01-01, so the two rates come from different data vintages.

Capital Gains Tax

Andorra and Palau share the same capital gains tax rate: 0%. The 175-country average is 10.3%: both sit below it. Andorra's figure is dated 2023-01-19 and Palau's 2026-07-19, so the two rates come from different data vintages.

Not covered for both countries yet: Corporate Tax, Crypto Tax, Wealth Tax.