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Economy and Banking Sector of Andorra

Withholding Tax

Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.

Withholding Tax Rates in Andorra: 0.0 - 10.0%

Withholding tax rates applied on payments of interest and dividends in Andorra are shown in Table 1.

Dividends Interest
Natural Persons (residents) 0.0 %0.0 %
Natural Persons (non-residents) 10.0 %10.0 %
Table 1. Withholding tax rates in Andorra.

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

  • spontaneously;
  • on request;
  • automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Exchange on Request: 22 Signed Agreements

Andorra signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):

 Argentina
 Australia
 Austria
 Czech Republic (Jun 2014)
 Denmark
 Faroe Islands
 Finland
 France
 Germany
 Greenland (Apr 2013)
 Iceland
 Liechtenstein
 Monaco
 Netherlands
 Norway
 Poland (Dec 2013)
 Portugal
 San Marino
 Spain
 Sweden

There are also several agreements between Andorra and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):

 Belgium
 Switzerland (Mar 2014)

Automatic Exchange: Starts in September 2018

Andorra signed the automatic information exchange agreement on 02 November 2016 and committed to start the automatic information exchange in September 2018.

Automatic Excnange: 29 Bilateral Agreements to Receive Information

Andorra has signed bilateral agreements with 29 jurisdictions to automatically receive information:

 Austria
 Belgium
 Bulgaria
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Finland
 France
 Germany
 Gibraltar
 Greece
 Hungary
 Ireland
 Italy
 Latvia
 Lithuania
 Luxembourg
 Malta
 Netherlands
 Poland
 Portugal
 Romania
 Slovakia
 Slovenia
 Spain
 Sweden
 United Kingdom

Automatic Excnange: 29 Bilateral Agreements to Send Information

Andorra has signed bilateral agreements with 29 jurisdictions to automatically send information:

 Austria
 Belgium
 Bulgaria
 Croatia
 Cyprus
 Czech Republic
 Denmark
 Estonia
 Finland
 France
 Germany
 Gibraltar
 Greece
 Hungary
 Ireland
 Italy
 Latvia
 Lithuania
 Luxembourg
 Malta
 Netherlands
 Poland
 Portugal
 Romania
 Slovakia
 Slovenia
 Spain
 Sweden
 United Kingdom

Further Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

FATCA Status in Andorra
No IGA

Although there is no IGA between Andorra and the United States, banking and financial entities operating in Andorra have reached the agreement with the IRS to participate in FATCA on an individual basis.

Further Information