Double Taxation Agreements (DTA) in Andorra (2025 Update)
Andorra expands its network of tax treaties, reinforcing transparency, legal security, and competitiveness as a trusted international business hub.
Elysium Consulting
Reading time: 7 minutes
The role of double taxation treaties in Andorra’s tax system
Double Taxation Agreements (DTA) are international treaties that determine which country has the right to tax an income when a person or company has fiscal ties in more than one jurisdiction.
In recent years, Andorra has developed an expanding network of DTAs, offering a transparent, modern, and secure framework aligned with the international standards of the OECD and the European Union.
➤ To better understand Andorra’s tax framework and how it fits into the international landscape, you can read Taxation in Andorra: structure, rates and real advantages.
1. What is the purpose of DTAs?
The main goal of a DTA is to prevent the same income from being taxed twice, both in the source country and the country of residence.
These agreements:
- Define tax residency criteria and allocate taxing rights between States.
- Allow for the reduction or elimination of withholding taxes on dividends, interest, or royalties.
- They provide a single answer in cases of potential residency conflict, determining tax residency in one country only.
➤ To understand how potential dual-residency situations are resolved, we recommend reading the article on Tax residency conflicts.
- Introduce mechanisms for deduction or exemption of foreign taxes paid.
- Promote cooperation and information exchange between tax authorities.
They ensure legal certainty and predictability for residents and internationally active companies.
👉 If you still have questions about the difference between administrative residency and tax residency, we recommend reading our article Types of residency in Andorra: active, passive and tax.
🌐 2. Double Taxation Agreements in force with Andorra (10/2025)
Below is the list of countries that have signed a DTA with Andorra and their effective dates:
- France – July 1, 2015
- Spain – February 26, 2016
- Luxembourg – March 7, 2016
- Portugal – April 23, 2016
- Liechtenstein – November 21, 2016
- United Arab Emirates – August 1, 2017
- Malta – September 27, 2017
- Cyprus – January 11, 2019
- San Marino – December 31, 2021
- Hungary – December 8, 2022
- Monaco – July 22, 2023
- Czech Republic – October 31, 2023
- Croatia – October 31, 2023
- Iceland – May 31, 2024
- Netherlands – November 29, 2024
- South Korea – April 4, 2025
- Lithuania – April 4, 2025
- Montenegro – June 20, 2025
- Latvia – June 25, 2025
- Romania - December 12, 2025
All these agreements follow the OECD Model Convention, ensuring consistency and international recognition.
3. Benefits of DTAs for residents and companies
DTAs provide multiple practical advantages:
- Allow foreign taxes paid to be used as tax credits in Andorra.
- Reduce withholding taxes on cross-border income.
- Facilitate direct investment to and from Andorra.
- Strengthen the international legitimacy of Andorra’s tax system.
Individuals and legal entities can request an Andorran tax residency certificate to benefit from the advantages provided by each treaty, provided they meet the legal criteria established by the Tax Administration.
➤ To learn in detail how to request a tax residency certificate and make full use of the treaty benefits, you can read Tax residency in Andorra: requirements, advantages and obligations.
➤ If you want to know more about corporate tax residency, we recommend reading the article Place of effective management: key to determining a company’s tax residence.
It should be noted that, in general, operating through a company usually results in a more favourable tax treatment than operating as an individual. Typical examples include business profits and the receipt of dividends.
Therefore, if you would like to know how to set up a company in Andorra, please refer to the article Setting up a company in Andorra: steps, requirements and advantages.
If you wish to go further and access comprehensive information, you may also consult the article The definitive guide to setting up a company in Andorra.
4. Transparency and international cooperation
Andorra’s DTA network is part of its broader strategy to position itself as a fully compliant and cooperative jurisdiction.
Andorra actively participates in the OECD Global Forum on Transparency and Exchange of Information and applies the Common Reporting Standard (CRS), ensuring fiscal competitiveness is consistent with transparency.
➤ If you are interested in the evolution of Andorra’s international framework and its alignment with OECD standards, we recommend reading Andorra’s international evolution: from tradition to a global environment.
Conclusion
Double Taxation Agreements reinforce Andorra’s status as a competitive yet transparent fiscal destination.
They allow residents and companies to operate confidently in a system where legality and efficiency coexist.
Their steady expansion reflects the Principality’s commitment to responsible international integration.
Double taxation treaties are a key component of Andorra’s tax system. If you’d like to assess how they may apply to your personal or business situation, you can book a personalised meeting or contact us through the form.
Last revision date: October 2025
