The Essential
On October 13, 2025, Andorra and the European Union signed an Amendment Protocol in Brussels to update their agreement on the automatic exchange of financial account information. This update aligns the agreement with the latest revisions of the OECD’s Common Reporting Standard (CRS), adopted in 2022 and consolidated in 2025. Among the key updates, digital assets, electronic money, and other emerging financial products are now included. In addition to Andorra, Monaco, San Marino, and Liechtenstein also signed the protocol. The planned effective date is January 1, 2026.
What exactly is changing?
The new Amendment Protocol modernizes the EU-Andorra financial information exchange agreement to reflect the OECD-approved modifications to the CRS. These changes expand the scope of automatic tax information exchange to include products such as electronic money, central bank digital currencies, and crypto-assets. It also ensures that indirect investments in crypto-assets, such as those made through derivatives or investment vehicles, are reported.
Additionally, due diligence and reporting requirements have been strengthened to enhance the quality and utility of the exchanged tax information. In parallel, the Eighth Directive on Administrative Cooperation in the field of Taxation (“DAC 8,” Directive (EU) 2023/2226) mandates that crypto-asset service providers report to their tax authorities starting in the 2026 fiscal year. The first exchange of information between tax administrations must take place no later than September 30, 2027. Although Andorra does not directly transpose this directive —as it is not a Member State of the EU—, the signed Protocol enables the Principality to align its automatic exchange of information agreement with the recent OECD CRS standards and with the updated European rules on tax transparency. In this way, Andorra strengthens its technical compatibility with the European tax transparency framework through the international agreement.
Andorra’s Regulatory Framework and National Context
In Andorra, the Llei 19/2016, del 30 de novembre, d’intercanvi automà tic d’informació en matèria fiscal implements the CRS into domestic law and governs the automatic exchange of information with the European Union. The signed protocol updates the international agreement underpinning this law, enabling Andorra to remain aligned with European legislation and comply with international standards of transparency and cooperation in tax matters.
