Andorra and the United Kingdom sign an agreement to avoid double taxation

The Principality of Andorra and the United Kingdom have reached a new tax agreement with the signing of a Double Taxation Agreement (CDI). This pact seeks to avoid double taxation on income and assets, in addition to establishing mechanisms to prevent tax evasion and avoidance between both countries.

A key step in Andorran-British economic relations

The agreement was formalized by the Secretary of State for International Financial Affairs of Andorra, Noëlia Souque, in a bilateral meeting with the Secretary of State for the Treasury of the United Kingdom, James Murray. The negotiation of this agreement began at the beginning of the current legislature and is part of Andorra’s strategy to strengthen its network of international tax agreements.

The United Kingdom represents a strategic partner for Andorra, not only because of the potential for bilateral business, but also because of its relevance in the global economic scenario. With this new CDI, Andorra expands its network of tax agreements, already adding 21 agreements of this type with countries such as Spain, France, Liechtenstein, Luxembourg, Malta, Portugal, Cyprus, San Marino and Hungary.

Benefits of the agreement

The signing of this agreement with the United Kingdom provides multiple advantages:

• Avoids double taxation in taxes on income and wealth, which favors the competitiveness of companies and the attraction of investments.
• Strengthens tax transparency, aligning Andorra with international standards in the fight against tax evasion and avoidance.
• It facilitates commercial and financial exchange between both countries, encouraging the arrival of new British investors to the Principality.

After signing, the agreement will be sent to the General Council of Andorra for parliamentary approval and, subsequently, it will be informed to the country’s co-princes.

An expanding fiscal framework

In addition to this agreement with the United Kingdom, Andorra continues in negotiations to sign similar agreements with Austria and Germany, in its bid to consolidate its fiscal framework and improve its attractiveness for international companies and citizens.

This CDI marks a new milestone in Andorra’s internationalization strategy, positioning the country as a reliable financial and commercial destination within the European context.