Andorra and Latvia sign the Double Taxation Agreement

🕒 Reading time: 6 minutes

💡 Introduction

The Principality of Andorra and the Republic of Latvia have signed a Double Taxation Agreement (DTA), reinforcing Andorra’s growing network of international tax treaties and its commitment to transparency and legal certainty.

The treaty aims to eliminate double taxation, prevent tax evasion and avoidance, and provide a stable framework for companies, investors and professionals with interests in both countries.

The agreement entered into force on 16 June 2025, following the exchange of diplomatic notifications, and was officially published in the BOPA on 2 July 2025, granting it full legal effect in Andorra.

⚖️ 1) How the agreement was reached

Negotiations between Andorra and Latvia took place from January to September 2024, culminating in the signature of the treaty in New York on 21 September 2024, during the 79th United Nations General Assembly.

The agreement was signed by:

• Imma Tor Faus, Minister of Foreign Affairs of the Government of Andorra.
• Baiba Braže, Minister of Foreign Affairs of the Republic of Latvia.

The Consell General ratified the treaty on 23 January 2025, published in the BOPA No. 22 on 19 February 2025.
Once both countries completed their domestic procedures, the agreement entered into force on 16 June 2025, as announced in the edict published in BOPA No. 80 on 2 July 2025.

🧩 2) Key provisions of the DTA

The treaty follows the OECD Model Convention, covering both income and wealth taxes in line with international tax standards.

Key provisions include:

• Tax residency: clear criteria to prevent dual residency conflicts.
• Elimination of double taxation: deductions or tax credits for taxes paid in the other jurisdiction.
• Exchange of tax information: enhanced cooperation between tax authorities to prevent evasion.
• Anti-abuse clauses: measures to avoid artificial tax arrangements.

The agreement also regulates taxation of dividends, interest, royalties, capital gains and pensions, ensuring legal certainty and predictability for cross-border transactions.

🕊️ 3) Entry into force

According to Article 28 of the Agreement, the DTA entered into force on 16 June 2025, the date on which Andorra officially notified Latvia of the completion of its domestic procedures.

Its official publication in the BOPA on 2 July 2025 confirms its legal enforceability in Andorra.

The DTA will apply for tax purposes:

• To withholding taxes on income paid or credited from 1 January 2026, and
• To income and wealth taxes for fiscal years beginning on or after 1 January 2026.

🌍 4) Importance of the agreement

The signing of the DTA between Andorra and Latvia strengthens Andorra’s position as a transparent, cooperative and internationally aligned jurisdiction.

Main benefits include:

• For Andorra: expansion of its tax treaty network and enhanced credibility.
• For Latvia: improved investment opportunities and capital mobility within Europe.
• For companies and investors: reduced tax burden and elimination of double taxation.

The agreement reinforces Andorra’s ongoing alignment with OECD and BEPS standards, promoting its European fiscal integration.

🧭 Conclusion

The Double Taxation Agreement between Andorra and Latvia marks another important step in Andorra’s fiscal modernization and international recognition.
From 2026, it will provide greater legal certainty and tax predictability for businesses, investors and international residents.

📚 Related articles

• Taxation in Andorra: structure, rates and real advantages — Comprehensive overview of the Andorran tax system.
• Tax residency in Andorra: requirements and benefits (2025) — Practical guide to determining effective tax residency.
• Double Taxation Treaties (DTTs) in Andorra (2025 update) — Updated overview of Andorra’s active bilateral agreements.

Last revision date: October 2025