Andorra: Domestic Corporate Taxation
Property taxes are levied by the municipality in which a business is located; a business renting its premises will be liable only for business rates; a business owning or constructing property for its own use will pay taxes on the acquisition of property and its construction in addition to business rates. There is a Property Acquisition Tax of 2.5% of the agreed purchase price payable to the Government (that in turn passes on half of this amount to the respective commune). This is payable by the purchaser, separately from the payment to the seller, at the Notary Public's office at the time of the transaction. All communes charge a small property rate in addition to the local rates and services charges. Business rates are charged on a square metre basis. There are also small percentage charges on rental income.