Tax offence in Andorra: origin, functioning and application

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🏁 A historic shift in the fight against tax fraud

The criminalisation of tax offences in Andorra is relatively recent. Until 2017, serious tax fraud had no specific criminal qualification and was dealt with mainly through administrative sanctions.

This changed with the adoption of Law 15/2017, amending the Criminal Code, published in BOPA No. 52 of 2 August 2017 and in force since 3 August 2017.

The reform introduced three new provisions —Articles 248, 248 bis and 248 ter— and amended Article 409 to include the aggravated tax offence as a predicate offence for money laundering. The goal was twofold: strengthen the country’s international credibility and align its legislation with the standards recommended by Moneyval, the FATF and the Monetary Agreement with the European Union.

In practice, the tax offence has become a central pillar of Andorra’s economic criminal framework, with implications for tax residency, tax planning and asset regularisation—topics that we also explore in Tax residency in Andorra: requirements, benefits and obligations.

Likewise, to better understand the Andorran context, we recommend reading Evolution of the Andorran fiscal framework, which provides a broader view of the country’s development.

📘 Why did Andorra introduce the tax offence?

The Preamble to Law 15/2017 explains the motives behind the reform:

• To comply with Andorra’s commitments with the EU on criminal and financial harmonisation.
• To meet Moneyval’s requirements in the fight against money laundering.
• To follow FATF recommendations, which view serious tax fraud as a necessary predicate offence for money laundering.
• To adapt to the international trend towards coordinated prosecution of serious tax offences.

This reform was a necessary step to place Andorra on par with comparable jurisdictions, reinforcing the trust of investors, entrepreneurs and families who value regulatory stability.

1️⃣⚖️ The basic tax offence (Article 248 CC)

Law 15/2017 completely redefines Article 248 of the Criminal Code. Its central idea is clear: only significant and qualified tax fraud is criminally punishable.

🧩 Elements required for the basic tax offence

A tax offence exists when all the following conditions are met:

• An act or omission intended to evade taxes or obtain unlawful tax benefits.
• A defrauded amount exceeding €75,000.
• That amount represents at least 5% of the tax liability due.
• Existence of intent to defraud (dolus).

🧠 Quantitative determination

The €75,000 threshold:

• applies per tax (PIT, CIT, VAT-equivalent IGI, etc.),
• and per tax period (e.g., tax year 2022, tax year 2023).

For taxes without a tax period, the threshold applies to each individual obligation or declaration.

This means that amounts from different taxes or different years cannot be added together.

Example: a taxpayer omits the following amounts:

• €40,000 of IGI (2022)
• €30,000 of CIT (2023)
• €10,000 of PIT (2022)

This does not constitute a tax offence because the amounts do not correspond to the same tax or the same period, even if the total exceeds €75,000.

➤ For a broader perspective, we recommend the article Taxation in Andorra.

🔒 Applicable penalties

Once the matter leaves the administrative sphere, the penalties are:

• Imprisonment from 3 months to 3 years.
• A fine from an equivalent amount up to four times the defrauded sum.

❗ Voluntary regularisation (Article 248.2)

Regularisation extinguishes criminal liability if it occurs:

• before an administrative request is issued, or
• before the taxpayer becomes aware of the opening of criminal proceedings.

It also covers any false documentation used to conceal the fraud.

2️⃣⚖️ The aggravated tax offence: when the fraud is particularly serious (Article 248 bis)

Article 248 bis creates an aggravated version of the offence for more severe cases.

🧩 It is considered aggravated when:

• The defrauded amount exceeds €150,000 and represents at least 5% of the tax liability,
  or
• The fraud was committed within a criminal organisation.

🔒 Applicable penalties

• Imprisonment from 1 to 5 years.
• A fine between the defrauded amount and up to four times that sum.

This aggravated form is especially relevant in cross-border situations or when two jurisdictions claim the same person as a tax resident, a scenario we analyse further in Tax residence conflicts: when two countries consider you a resident at the same time.

⚠️ Sentence reduction: Article 248 ter

To encourage the restoration of the tax loss, the Law introduces a reduction mechanism when:

• the taxpayer pays the defrauded amount within two months following the administrative or criminal notification.

In such cases, the reduction provided for in Article 54.1 of the Criminal Code applies.

💶 The aggravated tax offence as a predicate offence for money laundering (Article 409 CC)

A major innovation of Law 15/2017 is the amendment of Article 409, which incorporates the aggravated tax offence as a predicate offence for money laundering.

From that moment on:

• aggravated tax fraud may trigger criminal liability for money laundering,
• monitoring and detection obligations are strengthened,
• and the legal framework becomes aligned with European and international standards.

This is a key milestone in Andorra’s legal evolution, explored in depth in International evolution of Andorra: from tradition to a global world.

📅 When does the reform apply? The transitional regime

The Second Final Provision established the Law’s entry into force on 3 August 2017.

The Transitional Provision clarifies:

• Immediate application to taxes without a tax period.
• Application from 1 January 2018 to taxes with an annual tax period (PIT, CIT, IGI).

This avoids retroactive criminal application and ensures legal certainty. The rules are now fully in force.

🧭 Conclusion: a central element of Andorra’s criminal and tax system

The introduction of the tax offence in 2017 significantly reshaped how Andorra addresses serious tax fraud. The criminal framework now complements tax inspection with balanced mechanisms: clear thresholds, voluntary regularisation and alignment with money-laundering rules.

The coming years will show how this framework consolidates in administrative and judicial practice, especially in an environment of increasing international cooperation on tax matters.

If you wish to understand how this regulation may affect your situation, your tax background or your business activity, you can request a personalised meeting below or fill in the contact form.

Last updated: November 2025.