Information Exchange in Andorra: What Changes and Why It Matters
The information exchange in Andorra has been updated through a new protocol with the European Union that adapts the current agreement to international standards (CRS and CARF) and the GDPR. These modifications, fully applicable starting January 1, 2026, affect both residents and financial institutions in the Principality.
If you’re planning to move, invest, or establish a company in Andorra, understanding how the information exchange in Andorra works is key to planning your tax residence, fulfilling obligations, and protecting your data.
Information Exchange in Andorra: Key Aspects of the Protocol (CRS, CARF, and Data Protection)
The protocol incorporates technical and legal changes aimed at improving the accuracy and scope of the information exchange in Andorra. Notable points include:
- Expansion of asset types: now including products such as electronic money and digital currencies issued by central banks (CBDC).
- Higher data quality: strengthening due diligence requirements and the quality of transmitted information.
- Alignment with GDPR: updating legal references to ensure compliance with European data protection laws and Andorran legislation.
- Coordination with CARF: aiming to prevent duplication between CRS and CARF, simplifying obligations for financial entities subject to both frameworks.
Overall, the information exchange in Andorra seeks to enhance fiscal transparency without imposing disproportionate administrative burdens, according to European authorities.
Information Exchange in Andorra: Impact on Those Moving to Andorra
If you’re considering changing your residence to Andorra, the information exchange in Andorra has practical implications worth knowing in advance. Here are the main areas of impact:
Tax Residency and Obligations
The new framework increases transparency of assets and financial movements between Andorra and EU countries. Therefore, when establishing your tax residence in Andorra, you should:
- Review and document your previous tax situation and the date of your residency change.
- Inform banks and institutions about your new residence.
- Assess how the information exchange in Andorra may affect incomes declared in other countries.
If you need practical guidance on how to establish residency, consult our resources on residency in Andorra and taxes in Andorra.
For Employees and Remote Workers
The information exchange in Andorra increases cooperation between administrations. If you work self-employed or employed, you should:
- Verify the tax treatment of your salary or activity in the home country and in Andorra.
- Keep documentation proving effective residence in Andorra (employment contracts, invoicing, housing).
Information Exchange in Andorra: Implications for Companies and Financial Entities
Andorran companies and financial entities will need to adapt processes to comply with the requirements of the information exchange in Andorra. Key challenges and steps include:
- Update reporting systems to integrate data on crypto assets according to CARF.
- Refine due diligence and customer verification mechanisms.
- Ensure data transfers comply with the GDPR and Law 29/2021.
The coordination between CRS and CARF, included in the protocol, aims to reduce duplicate burdens for entities subject to both frameworks.
Information Exchange in Andorra: FAQs for Future Residents
Will it affect me from day one?
The information exchange in Andorra enhances data flows between Andorra and the EU from the entry into force of the protocol and the implementation of CRS/CARF. If you change your residence, your accounts and transactions will likely become visible to the tax authorities of your home country and European authorities according to reporting deadlines.
Can I protect my financial privacy?
The update includes data protection guarantees in accordance with the GDPR and Andorran regulations. However, relevant fiscal information will be shared when appropriate. Good practices include:
- Maintaining clear and transparent records.
- Consulting with tax specialists before and after relocating.
How to Prepare for the New Information Exchange in Andorra
To minimize surprises and ensure compliance, follow these practical steps:
- Review your tax situation and consult with experts in Andorra.
- Update contracts, domiciliations, and banking information.
- Plan the move and gather necessary documentation (registration, rental/purchase agreements, insurance).
- Learn about the healthcare and education systems if moving with family (healthcare system, education).
If you need practical help with the move or driver’s license homologation, visit our guides on moving to Andorra and exchanging your license.
Information Exchange in Andorra: Conclusions and Next Steps
The information exchange in Andorra strengthens the principality’s fiscal transparency and alignment with the EU and OECD. For those planning to live, invest, or work in Andorra, this update offers greater clarity but also requires proper fiscal and documentary planning.
If you seek personalized advice on tax residence, taxes, or relocation procedures, visit our pages on residency in Andorra, taxes in Andorra, and contact us to request a consultation.
At Andorraway, we accompany clients through every step: initial analysis, document management, moving, and adaptation. With the new CRS and CARF rules coming into force, planning and consulting are more important than ever to enjoy living in Andorra securely and compliantly.
Quick Summary
- The information exchange in Andorra is updated to include CRS, CARF, and GDPR.
- Impacts residents, workers, companies, and financial entities.
- Requires document and system adjustments but includes data protection guarantees.
- Seek professional advice and plan your move in advance.