Introduction
Automatic information exchange in Andorra: the recent ratification by the European Parliament of the amending protocol to the agreement between the EU and Andorra updates the rules of fiscal transparency. This protocol incorporates new international standards, expands the data exchanged, and includes crypto assets, affecting those who live, invest, or manage accounts from Andorra.
In this article, we explain, in a practical way and aimed at those considering moving or investing in Andorra, what automatic information exchange in Andorra entails, when it will be implemented, and how to prepare at a personal and business level.
Summary: What has the EU approved
The European Parliament has approved the protocol that amends the automatic exchange agreement with Andorra. The text incorporates OECD standards and adds more detailed reporting obligations for financial institutions. Specifically, the protocol includes crypto assets and digital currencies within the scope of information to be exchanged.
In simple terms: automatic information exchange in Andorra means that more information about accounts, account holders, controllers, and financial products will be shared between jurisdictions, affecting how banks and financial platforms report data.
When does it come into force and who signs it?
The protocol was signed in Brussels, and the ratification by the European Parliament accelerates its implementation. According to the resolution, the protocol will enter into force on January 1st following the last ratification notification. The signing was attended by representatives such as Secretary of State Landry Riba and European Commission Directorate-General for Taxation Director Thomas Gerassimos.
Main Impact: What changes for residents and future residents?
Automatic information exchange in Andorra directly affects individuals and legal entities who hold accounts or assets in Andorra. Some of the key effects include:
- Increased data flow between tax administrations (greater transparency).
- Inclusion of crypto assets and digital currencies in reports, reducing opacity.
- Enhanced obligations for financial entities in KYC (Know Your Customer) controls and OECD’s CRS/Automatic Exchange.
If you are considering residency, keep in mind that the introduction of automatic information exchange in Andorra does not change residency regulations by itself but does alter the practice of international tax supervision: account and asset data will be more accessible to other administrations.
For practical information about moving and living in Andorra, see our internal resources: residency in Andorra and living in Andorra.
For companies and entrepreneurs: what does it imply?
Companies with international financial relations or foreign clients will face increased reporting requirements. Automatic information exchange in Andorra impacts:
- Greater compliance documentation and reporting obligations for banks and financial service providers.
- The need to review compliance policies, tax advising, and accounting practices.
- Less opacity for structures using Andorran entities for tax purposes; emphasizing legal planning and transparency.
If you manage a company or are thinking about setting one up, it may be helpful to review information on taxes: taxes in Andorra and on incorporation and procedures on our site.
Checklist for companies
- Review KYC and AML policies with your tax and banking advisors.
- Ensure accounting systems can generate CRS reports and other required formats.
- Inform clients and partners about the new transparency requirements.
Crypto assets: the most relevant update
One of the key aspects of the protocol is the explicit inclusion of crypto assets, central bank digital currencies, and specific electronic money products within the exchange framework. This means automatic information exchange in Andorra will eventually cover transactions and positions related to crypto, when institutions are obliged to report them.
Crypto asset holders should expect increased traceability and coordination among tax authorities. It is advisable to document the origin of funds and seek advice on applicable taxation.
And the banks? Trust and adaptation
Andorran banks have been adapting their compliance policies over recent years. With the new protocol, relations with European entities normalize: more shared information but also increased regulatory confidence. Automatic information exchange in Andorra aims to reinforce the trust of the EU in the Andorran financial system.
How to prepare: practical steps if you are planning to move or invest
Here is a practical plan for individuals and companies:
- Tax advice: consult a specialized adviser before deciding on residency or asset changes.
- Review accounts: document origins of funds and banking operations.
- Update contracts and agreements with banks and payment platforms.
- Assess the impact on crypto assets and plan for potential reporting obligations.
At Andorraway, we offer guidance services for moves and tax management. See our resources on residency, taxes, and cost of living: moving management, cost of living in Andorra, and contact to speak with a consultant.
Advice for those with crypto or international investments
Practical recommendations before automatic information exchange in Andorra:
- Keep clear records of asset inflows and outflows and transactions with exchanges or custodians.
- Review tax obligations both in your country of residence and income sources.
- Consider restructuring your assets with legal and tax advice.
Conclusion and next steps
The ratification of the protocol reinforces the move toward greater international transparency. Automatic information exchange in Andorra is not inherently threatening but calls for professional tax compliance and responsible planning.
If you want tailored guidance—residency, taxation, company formation, or asset management—visit our guides and services: living in Andorra, residency in Andorra, and taxes in Andorra. We can also assist with education, healthcare system, and moving logistics: moving management.
If you prefer, contact us for personalized consulting and to prepare for the new information exchange era.