2025 Income Tax Return in Andorra: Updates and Deductions
The campaign to file the 2025 income tax return has already begun. You have from April 1 to September 30, 2026, to fulfill your tax obligations. This year, the IRPF comes loaded with highly positive tax updates that can clearly reduce your final bill.
This exercise incorporates changes that work directly in your favor, so it is advisable to review the numbers carefully. There are new reductions to lower the tax base that should not be overlooked.
Why is this year different?
You must pay close attention to these three recent situations that allow you to optimize your tax base:
- ✓ First: New advantages when purchasing your primary residence.
- ✓ Second: Tax benefits for investing in affordable or social rental housing.
- ✓ Third: Increased reductions for children’s higher education costs.
1. Family updates: Children and higher education
The Government has significantly improved family benefits. The reduction is increased to €1,000 per descendant. Requirements: they must be under 25, live with you (or be dependent on you), and earn no more than the minimum wage (SMI). In addition, an extra €300 allowance is introduced for higher education tuition fees.
💡 Practical example: If you have a 19-year-old university daughter who does not exceed the SMI, you can apply a direct reduction of €1,300. If both parents are entitled, the amount is pro-rated at 50%.
2. Real estate measures: Primary residence and mortgage
For your primary residence, you can deduct 50% of the acquisition expenses and the mortgage installment paid during 2025, with a maximum limit of €5,000 per year per person.
- ✓ Example A: A couple pays a €15,000 mortgage at 50%. Each can apply a reduction of €3,750 (half of €7,500).
- ✓ Example B: If they paid €28,000 (€14,000 each), half would be €7,000, but the reduction would be limited to the €5,000 cap per person.
3. Investment in affordable rent
If you have purchased an apartment for the regular rental market with a maximum price of €12.45/sqm, you can deduct 50% of all amounts paid, subject to the same limit of €5,000 annually per taxpayer.
Property transfers and prevention
If you sold a property in 2025, gains and losses have specific treatments. Reviewing your taxation in detail before filing the tax will help you avoid unpleasant surprises. Do not file your return on autopilot: good planning makes a real difference in the outcome.
Do you want us to review your case?
At Triple A, we are your strategic partner. We validate if you meet the requirements for the new reductions and analyze the tax impact so you don’t pay a single euro extra.
