ANDORRA Law and Practice Contributed by: Albert Hinojosa and Marc Ambrós, Cases Lacambra
the withholding tax effectively applies to 80% of the gross rental income. 8.5 Tax Benefits Companies subject to Corporate Income Tax have the right to deduct the depreciation generated from the owning of constructions. Depreciation can be deduct - ed from the Corporate Income Tax taxable base in accordance with the depreciation plan adopted. Corporate Income Tax taxpayers may reduce their positive taxable income by up to 15% by contributing residential properties to the National Housing Institute, thereby supporting public policies aimed at improving access to housing.
Additionally, Corporate Income Tax and Personal Income Tax taxable bases may be reduced by an amount equivalent to 10% of rental income derived from residential properties located in Andorra, pro - vided that the rental income does not exceed EUR9 per square metre. Finally, Personal Income Tax taxpayers may reduce their taxable base by an amount equivalent to 50% of the expenses incurred during the tax period for the acquisition of a property intended for the rental market as a primary and permanent residence for an individual, provided that the rental price is affordable.
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