Andorra and Lithuania sign the Double Taxation Agreement
Andorra and Lithuania sign a Double Taxation Agreement that strengthens fiscal cooperation and expands Andorra’s international tax network.
Elysium TEAM
🕒 Reading time: 3 minutes
💡 Introduction
The Principality of Andorra and the Republic of Lithuania have signed a Double Taxation Agreement (DTA) aimed at eliminating double taxation, preventing tax evasion and avoidance, and ensuring a stable framework for cross-border business and investment.
The treaty entered into force on 24 December 2024 following the exchange of diplomatic notifications, and was officially published in the BOPA on 7 August 2024, granting it full validity under Andorran law.
⚖️ Context and signature
The Agreement between the Principality of Andorra and the Republic of Lithuania was signed in Vilnius on 17 April 2024 by:
- Imma Tor Faus, Minister of Foreign Affairs of the Government of Andorra.
- Gabrielius Landsbergis, Minister of Foreign Affairs of the Republic of Lithuania.
The Consell General ratified the treaty on 15 July 2024, and it was published in the BOPA No. 87 on 7 August 2024.
After the exchange of notifications, the treaty entered into force on 24 December 2024, according to the government edict.
🧩 Key provisions of the DTA
Based on the OECD Model Convention, the treaty governs both income and wealth taxes.
Main provisions include:
- Tax residency: clear criteria to prevent dual residency conflicts.
- Elimination of double taxation: reciprocal deductions or tax credits.
- Exchange of tax information: enhanced cooperation between authorities.
- Anti-abuse clauses: safeguards to prevent misuse of the treaty.
It also covers dividends, interest, royalties, capital gains and pensions, ensuring predictability and legal certainty for taxpayers in both jurisdictions.
🕊️ Entry into force and application
According to Article 28 of the Agreement, the DTA entered into force on 24 December 2024 following the diplomatic exchange of notifications.
Its official publication in the BOPA on 7 August 2024 confirmed its enforceability under Andorran law.
The treaty will apply for tax purposes:
- To withholding taxes on income paid or credited from 1 January 2025.
- To income and wealth taxes for fiscal years beginning on or after 1 January 2025.
🌍 Importance of the agreement
The DTA strengthens Andorra’s international standing as a cooperative and transparent jurisdiction aligned with OECD and BEPS standards.
Key impacts:
- For Andorra: expands its network of tax treaties and enhances its credibility.
- For Lithuania: encourages European investment and capital mobility.
- For companies and investors: provides tax stability and avoids double taxation.
This agreement further integrates Andorra into the global fiscal landscape, following recent treaties with South Korea, Iceland and the Netherlands.
🧭 Conclusion
The Double Taxation Agreement between Andorra and Lithuania represents another important milestone in Andorra’s international fiscal strategy.
From 2025 onwards, it will provide a transparent and predictable environment for companies, investors and 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
