The Income and Capital Tax Treaty between Andorra and Luxembourg entered into force on 7 March 2016.
The provisions of the Treaty will take effect from 1 January 2017.
In accordance with the Treaty, the following withholding taxes will apply:
Dividends:
- 0% if the beneficial owner holds directly and uninterruptedly, for at least a period of 12 months, at least 10% of the capital of the company paying the dividends or a participation with an acquisition cost of at least €1,200,000 in the company paying the dividends.
- 5% if the beneficial owner is a company (other than a partnership) which holds directly at least 10% of the capital of the company paying the dividends.
- 15% in all other cases.
Interest: 0%.
Royalties: 0%.
