The Andorran General Council has approved the ratification of the income and capital tax treaty with Austria, advancing an agreement that sets out the taxes covered, withholding tax rates, and the timetable for its entry into force.
The Andorran General Council (parliament) approved the ratification of the income and capital tax treaty with Austria on 14 July 2026.
Signed on 28 May 2026, the treaty applies to Andorra’s corporate income tax, personal income tax, and tax on income of non-residents. On the Austrian side, it covers income tax, corporation tax, land tax, tax on agricultural and forestry enterprises, and tax on the value of vacant plots.
Under the treaty, the withholding tax rate on dividends is 0% where the beneficial owner is a company that directly holds at least 10% of the paying company’s capital throughout a 365-day period that includes the day of the payment of the dividend; otherwise, the rate is 15%.
The withholding tax rate on interest is 0%, while the rate on royalties is 5%.
The treaty will enter into force 30 days after the exchange of ratification instruments and will apply from 1 January of the following year.
