Andorra's 2025 Income Tax Campaign Hits Record €91M Revenue

Andorra's 2025 personal income tax campaign ended with a record €91.2 million in revenue, despite new fiscal reliefs for housing and families, according to Carles Ferreira, director general of Taxes and Borders.

The campaign, spanning April to 30 September, produced €91,226,896 in collections from 29,706 declarations—exceeding initial projections. This represents growth from 2024's nearly €78 million figure, which now includes for the first time €5.7 million in capital gains from property sales following the repeal of a specific tax.

Ferreira called the result close to early forecasts and a continuation of positive trends in direct taxation. He linked the rise to broad income growth across savings, employment, and economic expansion. Around 42% of the total, or €38 million, came from the voluntary filing period, which closed on Tuesday.

Breakdowns show 15,623 declarations requiring payments totaling €43.19 million, 8,310 refunds worth €4.89 million, and 5,773 with no balance. Revenue sources included €23.6 million from work income withholdings, €11.4 million from movable capital, and €12.3 million from economic activity instalments.

Online filings accounted for 85.41% of submissions, with 14.59% handled in person. September captured 55% of declarations, down from 64% the prior year, reflecting a more even spread and a 10% uptick in earlier months. Ferreira praised the campaign's smooth progress, free of major technical glitches.

Authorities continue assessing the precise impact of fresh deductions, such as higher allowances for dependents, primary residence mortgages, and higher education costs. Fraud reviews and checks on non-filers are still underway. Ferreira reiterated that the €24,000 tax-free threshold on work income lies beyond his department's scope, with no changes planned.