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💡 Introduction

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.

⚖️ 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.
• 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.

🌐 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

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 can request an Andorran tax residency certificate to benefit from each treaty, provided they meet the legal criteria set by the Tax Administration.

🌍 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.

🎯 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.

📚 Related articles

• Taxation in Andorra: structure, rates and real advantages — Explains Andorra’s tax framework and its alignment with international standards.
• Setting up a company in Andorra: steps, requirements and advantages — Details the process of company formation and its tax implications.
• Andorra’s international evolution: from tradition to a global world — From an isolated country to an open economy integrated into the international landscape.

Last revision date: October 2025