Blockchain and Cryptocurrencies in Andorra 2025: innovation, regulation, and tax advantages

International tax

Advanced legal framework for blockchain and cryptocurrencies

Andorra has established a specific regulatory framework for blockchain technology and cryptocurrencies through Llei 24/2022, del 30 de juny, de la representació digital d’actius mitjançant l’ús de la criptografia i de la tecnologia de llibre registre distribuït i blockchain (Digital Assets Law). This legislation provides clear guidelines for the issuance, custody, exchange, and supervision of digital assets using distributed ledger technologies (DLT) and blockchain. The law includes specific measures to ensure transparency and legal security, positioning Andorra as a leader in the regulation of digital assets.

Blockchain licenses in Andorra: requirements and benefits

Companies wishing to operate in the digital assets sector in Andorra, such as DeFi platforms, NFT marketplaces, or custody services, must obtain a specific license granted by the Andorran Financial Authority (AFA). The requirements for obtaining this license include:

Official registration with the AFA.
Minimum capital as established by regulations.
Civil liability insurance.
Appointment of a "veedor digital registrat," an authorized representative acting as a liaison with the AFA.

These licenses not only guarantee the security of operations but also align the sector with international standards for anti-money laundering and counter-financing of terrorism (AML/CFT), providing a trustworthy environment for investors and businesses in the sector.

Innovation in the banking sector

Banks in Andorra are adopting blockchain technologies and offering innovative cryptocurrency-related services. For instance, MoraBanc has launched the country’s first custody wallet for digital assets, enabling clients to securely store cryptocurrencies like Bitcoin, Ethereum, and stablecoins.

Cryptocurrency taxation in Andorra: advantages for investors

Andorra offers a competitive and clear tax regime for cryptocurrencies. Profits derived from cryptocurrency transactions are subject to low taxes, making the country an attractive destination for startups, blockchain companies, and individual investors.

Key Tax Advantages

Competitive Taxation:

Income Tax: Profits are taxed at a maximum rate of 10%.
Corporate Tax: Also a maximum rate of 10 %, significantly lower than in other European jurisdictions.
Exemption from IGI (General Indirect Tax): Cryptocurrency transfers used as payment instruments are exempt from this tax.

Mining is not subject to IGI, provided it is not classified as an economic activity.

Growing influx of investors and entrepreneurs

The blockchain and crypto-assets sector continue to attract a growing number of investors and entrepreneurs to Andorra, who are taking advantage of the opportunities this technology offers. The combination of these tax benefits and a clear legal framework appeals to both small investors and large blockchain companies, solidifying Andorra as a hub for technological innovation and efficient taxation.

Specialized legal advice

In this dynamic context, it is essential to have specialized legal advice that understands the challenges and opportunities of the sector. Our team is ready to offer solutions tailored to the specific needs of each client, ensuring regulatory compliance and facilitating the successful development of blockchain and cryptocurrency projects.

For more information on how we can assist with your blockchain and cryptocurrency initiatives in Andorra, we invite you to contact us.