Andorra signed its first ever double tax treaty (DTT) with the UK on 20 February.
In a short statement, HMRC said: “The 2025 UK-Andorra Double Taxation Convention was signed in London on 20 February 2025. The Convention will enter into force upon completion of the procedures required by the law of both countries.”
In an earlier statement, HMRC set out how the agreement would “apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.
“There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital or on elements of income, or of capital including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.”
The existing taxes to which it will apply are:
In Andorra
(i) Corporate income tax (impost sobre societats);
(ii) Personal income tax (impost sobre la renda de les persones físiques);
(iii) Tax on income for fiscal non-residents (impost sobre la renda dels no residents fiscals);
(iv) Tax payable on the increase in value in immovable property (impost sobre les plusvàlues en les transmissions patrimonials immobiliàries);
In the United Kingdom
(i) income tax;
(ii) corporation tax; and
(iii) capital gains tax
