Accounting in Andorra: origin and structure of the General Accounting Plan (PGC)

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🏁 Origin and purpose

Before 2008, there was no general obligation to keep accounting records in Andorra.
Each company managed its books autonomously, without a unified framework or consistent criteria for preparing annual accounts.

Law 30/2007 of 20 December on business accounting was enacted to fill this gap and establish a standardized system of financial information, aligned with international transparency and reliability standards.

Its preamble highlights three key goals:

• Ensure economic transparency and reliability of financial data.
• Facilitate international comparability of Andorran financial statements.
• Strengthen the country’s credibility with investors and foreign institutions.

With this reform, Andorra consolidated a modern economic framework and advanced its integration with Europe.

💼 Purpose and scope

The Law requires all entrepreneurs and businesses, whether individuals or legal entities, to keep organized accounting suited to their activity.

This accounting must:

• Record operations chronologically.
• Produce annual accounts showing a true and fair view.
• Provide clear and comparable information for decision-making.

Its main purposes are:

• Offer verifiable information to business owners and creditors.
• Enable state and financial supervision.
• Support rational business decisions.

➤ The PGC is the accounting basis for calculating corporate taxation in Andorra, as explained in the article Corporate tax in Andorra: regimes, deductions and fiscal incentives.

📘 Basic principles and structure

The Law is divided into four main chapters:

• Accounting duty (arts. 1–3): universal obligation to keep accounting books.
• Mandatory books (arts. 13–15): journal and inventory with annual accounts.
• Annual accounts (arts. 16–20): balance sheet, income statement, changes in equity, cash flow statement and notes.
• Consolidated accounts (arts. 33 et seq.): future obligation for corporate groups.

It also establishes three essential principles:

• True and fair view: statements must reflect economic reality, not just legal form.
• Clarity and order: records must be dated, without blanks or hidden corrections.
• Confidentiality: access limited to the Ministry of Finance, AFA or courts.

🏦 International inspiration and alignment

The Andorran model draws directly from the Spanish General Accounting Plan, adapted to local conditions.
Chapter III integrates EU Accounting Directives (IV and VII) and recognizes International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as references.

This harmonization ensures compatibility with European and international standards and provided the basis for the General Accounting Plan, approved on 23 July 2008 and effective from 1 January 2009.

📊 The General Accounting Plan (PGC)

The Andorran PGC implements Law 30/2007, defining the technical criteria for recording, recognition and valuation of accounting elements.

Laws 8/2010 and 26/2011 later introduced amendments that added:

• A sanction regime for failure to file accounts.
• Simplified categories for annual accounts.
• A sworn declaration for entrepreneurs with income below €150,000.

⚖️ Significance and key aspects

Key highlights include:

• The formal obligation for all Andorran companies and professionals.
• Convergence with European transparency standards.
• The principle of a true and fair view as a cornerstone.
• The adaptation of small businesses to standardized accounting.
• The impact of the sanction regime and control over account filing.

Having a national accounting framework aligned with international rules also facilitates financial and tax consolidation, especially for cross-border corporate groups.

➤ To learn more about Andorra’s tax framework, read Taxation in Andorra: structure, tax rates and real advantages.

🧭 Conclusion

Law 30/2007 represented a turning point in Andorra’s economic history.
It ended a period with no formal accounting obligation and established a modern framework aligned with the EU, ensuring transparency, trust and competitiveness.

The General Accounting Plan remains today a fundamental tool for ensuring reliable and internationally consistent financial information.

👉 If you’d like to understand how this accounting framework impacts your company’s taxation, you can request a personalized consultation or fill out the contact form.

Last reviewed: November 2025