The Government of Andorra has signed a Double Taxation Agreement – DTA with the Netherlands in October 2023 and is in the process of finalizing previous agreements with South Korea and Belgium. The agreement was officially sealed between the Minister of Finance, Ramon Lladós, and his counterpart from the Netherlands, Sigrid Kaag, during a meeting held at the Annual Meeting of the International Monetary Fund (IMF) in Marrakech.
With this latest treaty, the Principality now has a total of 15 international agreements to facilitate investment and economic exchange with other countries, as well as to establish mechanisms to prevent the same income that has been obtained by a taxpayer from being taxed by two or more states, for the same taxable event and identical periods. The agreement, launched by the Andorran government in 2014, also aims to address tax evasion.
Consequently, the Netherlands will now join the tax advantages of France, Spain, Luxembourg, Liechtenstein, Portugal, the United Arab Emirates, Malta, Cyprus, San Marino, the Czech Republic, Croatia, Monaco, Iceland and Hungary.
The taxes covered by the Double Taxation Agreement - DTA include all direct income taxes, such as corporate tax, personal income tax, non-resident income tax and capital gains tax on real estate transactions. Nevertheless, to maximize capital returns and avoid double taxation for the same concept in the country of origin of the company and where the economic activity takes place, companies like Integral Serveis 21 provide guidance and support throughout the process.
Once again, Andorra restates its commitment to contributing to the stability of the international financial system.