Andorra collects €91 million in personal income tax, up €18 million on the previous year
The filing period closes with more than 29,700 returns, with total revenue including around €6 million from property capital gains
Andorra’s personal income tax (IRPF) revenue for the 2025 tax year reached €91 million, compared with €73 million for 2024.
This represents an increase of €18 million, or nearly 25%, according to figures presented by Carles Ferreira, Director General of Taxation and Borders.
The filing period, which closed on 30 September, saw more than 29,700 tax returns submitted. Of the €91 million collected for the tax year, more than €38 million was paid during the filing period, between April and September.
Property capital gains account for €6 million
One factor needs to be considered when comparing the figures with the previous year: the total includes around €6 million from capital gains on property transactions, which were previously covered by a separate tax that has since been abolished.
This means that part of the increase reflects the inclusion of this revenue in personal income tax, rather than growth in taxable income alone.
Ferreira attributed the rise in revenue to several factors, including economic growth and higher employment and savings income. He said the increase had been fairly broad-based, with a similar trend also evident in corporate income tax revenue.
Revenue rises despite expanded tax relief
The director general highlighted that revenue had increased despite expanded tax relief for families and housing.
For this filing period, the tax allowance for each dependent parent, grandparent, child or grandchild rose from €750 to €1,000, while the mortgage-related allowance increased from €1,000 to €5,000.
85% of tax returns filed online
Some 85% of returns were submitted online, a share that remained high despite the increase in the total number of submissions.
Ferreira also welcomed the fact that taxpayers had spread their submissions more evenly throughout the filing period. September accounted for 55% of returns, down from 64% the previous year, indicating less of a rush during the final month.
Tax department takes no position on changing the tax-free threshold
Asked about a possible revision of the €24,000 tax-free threshold, Ferreira stressed that it was not the department’s role to assess whether it should remain unchanged or be adjusted. He also noted that almost half of employment income falls outside the scope of the tax.
On tax fraud, the director general said that figures were not yet available to quantify its scale and that the department would work on this analysis over the coming months.