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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 :

AR Argentina
AU Australia
AT Austria
CZ Czech Republic
DK Denmark
FO Faroe Islands
FI Finland
FR France
DE Germany
GL Greenland
IS Iceland
LI Liechtenstein
MC Monaco
NL Netherlands
NO Norway
PL Poland
PT Portugal
SM San Marino
ES Spain
SE Sweden

There are also several agreements between Andorra and other jurisdictions which was signed but haven't yet come into force:

BE Belgium
CH Switzerland

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:

AT Austria
BE Belgium
BG Bulgaria
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
HU Hungary
IE Ireland
IT Italy
LV Latvia
LT Lithuania
LU Luxembourg
MT Malta
NL Netherlands
PL Poland
PT Portugal
RO Romania
SK Slovakia
SI Slovenia
ES Spain
SE Sweden
GB United Kingdom

Automatic Excnange: 29 Bilateral Agreements to Send Information

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

AT Austria
BE Belgium
BG Bulgaria
HR Croatia
CY Cyprus
CZ Czech Republic
DK Denmark
EE Estonia
FI Finland
FR France
DE Germany
GI Gibraltar
GR Greece
HU Hungary
IE Ireland
IT Italy
LV Latvia
LT Lithuania
LU Luxembourg
MT Malta
NL Netherlands
PL Poland
PT Portugal
RO Romania
SK Slovakia
SI Slovenia
ES Spain
SE Sweden
GB 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