News & Insights

In a context of growing interest in favorable tax jurisdictions—especially among digital professionals and mobile entrepreneurs—Andorra’s tax system has become a subject of public discussion. In her article published in Cinco Días, Carlota Pastora offers a detailed analysis of the legal implications of establishing tax residency in Andorra, debunking simplified ideas about fast-track relocations and emphasizing the importance of coherent and lawful planning.

On February 20, 2025, the United Kingdom and Andorra signed a Double Taxation Convention (DTC), a key milestone aimed at facilitating investment and economic exchanges between the two countries.

The treaty aims to prevent double taxation of the same income in Andorra and the United Kingdom by determining, for each category of income, which of the two States has the taxing rights over it.

Buying a property in Andorra is a significant decision that requires caution, preparation, and, above all, thorough due diligence. Signing a reservation or earnest money contract without careful analysis can expose the buyer to financial and legal risks, such as penalties, loss of deposits, or issues with the property itself. In this article, we explore the key aspects of real estate due diligence in Andorra and offer practical advice to help protect your interests.

On March 6, the Consell General approved Law 5/2025, for sustainable growth and the right to  (also known as the “Omnibus Law”), marking a significant milestone in regulatory efforts aimed at addressing the current social and economic challenges of the real estate market, immigration policies, and foreign investment in Andorra. This legislation aims to ensure sustainable access to housing, curb real estate speculation, and foster fair economic development.

In recent years, Andorra has strengthened its commitment to transparency and international cooperation in tax matters by implementing the Automatic Exchange of Information (AEOI). This mechanism has a significant impact on bank account holders in Andorra who are tax residents of other countries. Below, we detail what it entails, its implications, and the countries with which Andorra has signed agreements.

Líder Legal interviewed Carlota Pastora, founding partner of the firm, who spoke about industry trends and the evolution of the firm. She highlighted the firm's history and consolidation in international taxation and business law in Andorra, offering personalized advice on wealth and estate planning for high-net-worth clients.

She emphasized the growing tax competition between jurisdictions due to initiatives such as the OECD’s BEPS measures and the global minimum tax. She also addressed the challenges of digitalization, highlighting the importance of regulatory compliance and cybersecurity, areas in which the firm advises and collaborates with technology experts.