Andorra and Spain sign Tax Treaty


Tax Treaty signed between Spain and Andorra

Following a wide ranging meeting between the respective heads of state of Andorra and Spain, negotiations commenced in September 2014 to agree a double taxation agreement (DTA) between the two neighbouring states.  The negotiations were instituted with the aim of avoiding double taxation between the two countries and used the OECD model DTA, which includes anti-abuse clauses and other standard safeguards.

Negotiations concluded with the signature of the Agreement on 8th January 2015 on the occasion of the Spanish Prime Minister’s first official visit to Andorra. The Treaty will enter into force following completion of each country’s domestic ratification procedure and is expected to enter into force in early 2016.

It is intended that the Treaty will simplify tax for businesses trading between the two countries and will boost business with Andorra’s largest trading partner.

Spain and Andorra have an existing Tax Information Exchange Agreement (TIEA), signed in January 2010 as part of the measures introduced at the time to enable Spain to request tax information from Andorra. It is expected that this TIEA will be replaced in the near future by a new TIEA which is reported to include provision for a system to automatically share tax information and data exchange between the two states.

The issue of Spanish taxpayers depositing sums in Andorra came to a head in the summer of 2014, when a senior Spanish politician admitted maintaining accounts in Andorra and elsewhere for many years.

Currently Andorra is continuing negotiations with a number of states elsewhere in Europe, including the UK, with a view to entering further DTA’s and TIEA’s in the future.

For further information on this subject please contact Simon Huxford at