News & Insights

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.

Discover how the 2025 Budget in Andorra introduces tax reforms that benefit both individuals and businesses. With the approval of the 2025 Budget, Andorra has introduced slight reforms in its tax legislation (Llei 4/2025, del 30 de gener, del pressupost per l’exercici del 2025). Below is a summary of the main updates included in this budget, organized according to their impact on individuals and companies.

Global tax competition is driving HNWIs and entrepreneurs to seek more favorable jurisdictions. Andorra stands out for its low taxation and absence of wealth taxes. Switzerland offers stability and a special tax regime, but with high rates depending on the canton. Portugal has reduced incentives with the new RNH 2.0 regime. The UAE has no personal income tax but presents cultural challenges. Italy offers a fixed tax for new residents with foreign income, though it applies high rates to local earnings.

Andorra has established a legal framework for blockchain and cryptocurrencies with Law 24/2022, regulating the issuance and custody of digital assets. Companies must obtain a license from the Andorran Financial Authority (AFA). The country offers a favorable tax regime, with low taxes on cryptocurrency gains (up to 10%) and exemptions on transfers. Banks like MoraBanc also provide custody services. This has attracted investors and blockchain companies, positioning Andorra as a technological hub.