The Andorran National Institute of Finance (INAF), created in 1989, was renamed the Andorran Financial Authority (AFA) in 2018; the AFA is responsible for overseeing all financial services in Andorra, including banks and investment vehicles such as SICAVs.

International Standing: Andorra participates in the Financial Action Task Force (FATF) recommendations but lacks dedicated crypto-specific statutes.

Llei 10/2008, as consolidated by the Decret legislatiu del 12-02-2014, regulates collective investment schemes (OICs) in Andorra, covering securities and financial instruments.

Llei 95/2010 establishes corporate tax rates, including a 0% rate for OICs (source).

Llei 94/2010 governs non-resident income taxation, relevant for crypto transactions involving foreign entities.

Establishment and operation of exchanges.

Issuance and management of tokens classified as investment vehicles.

Provision of custodial services for digital assets.

Customer Due Diligence (CDD): Identification and verification of customers before engagement.

Enhanced Due Diligence (EDD): Required for high-risk transactions or politically exposed persons (PEPs).

Suspicious Transaction Reporting (STR): Obligation to report any suspicious activity to the AFA (source).

Record Retention: Detailed records must be maintained for at least five years.

Beneficial Ownership Disclosure: Identification of ultimate beneficial owners is mandatory.

Income Tax: Dividends from Andorran companies to resident individuals are exempt from personal income tax (IRPF) (source).

Capital gains exemptions in Andorra apply to transfers of shares, but are not specifically targeted at long-term holders; they depend on the percentage of stake sold (≤25% is exempt, >25% may incur up to 10%).

Withholding Taxes for Non-Residents: No withholding taxes on dividends or capital gains from non-resident shareholders (source).

Andorra now provides explicit tax guidance on virtual assets via the IRPF with a €3,000 allowance and a maximum rate of 10 %.

Andorran Financial Authority (AFA) - globalEDGE

SICAV in Andorra: tax benefits, capital requirements and ...

Banking and securities - Andorra - system

The Andorran Financial Authority (AFA) regulates financial services in Andorra, established in 1989 (source).

No specific legislation targets cryptocurrencies or digital asset securities directly; existing regulations apply broadly (source).

Licensing for crypto activities falls under general financial services licensing, with no entities specifically licensed as of 2025–2026 (source).

SICAVs require a minimum patrimony of €1,250,000 for general OICs, with higher thresholds for real estate-focused entities (source).

AML/KYC obligations include CDD, EDD, STR reporting, and beneficial ownership disclosure (source).

Dividends to resident individuals are exempt from personal income tax; no withholding taxes for non-resident shareholders (source).

Lack of specific crypto regulations creates ambiguity and potential compliance risks (source).

Andorra participates in FATF recommendations, as confirmed by the FATF website.

Llei 95/2010 establishes a standard corporate tax rate of 10% for resident companies in Andorra; the original 0% rate has been superseded by amendments, including reforms in 2018.

Llei 5/2023 introducing fiscal transparency rules.

International Standing: Andorra is not listed in FATF’s “jurisdictions under monitoring” and participates in CDIs (Double Taxation Agreements) to mitigate cross-border tax issues.

License Necessity: No specific license is mandated for cryptocurrency exchanges or digital asset securities offerings. Compliance falls under general financial licensing, primarily for banking and OIC activities.

Management of collective investment schemes (OICs) requires registration with AFA (SICAV regulation).

Banking services are regulated under broader financial licensing, but no crypto‑specific license exists.

Capital Requirements: Minimum patrimony for OICs starts at €1,250,000, rising to €6,000,000 for real estate‑focused schemes (SICAV capital requirements).

Registration involves submission of documentation to AFA; typical processing times range from 2 to 4 months (sometimes up to three months), aligning with standard financial regulatory processing in Andorra.

Structural Requirements: Entities must comply with corporate governance standards, including tax residency and beneficial ownership disclosures. No specific crypto‑focused structural mandates exist.

CDD & EDD: Compliance with customer due diligence (CDD) and enhanced due diligence (EDD) is required for financial entities, applicable to crypto service providers if classified under banking/OIC regulations.

STR Reporting: Suspicious transaction reporting (STR) obligations apply per AFA guidelines.

Record Retention: Financial records must be retained for at least five years (AFA regulatory focus).

Beneficial Ownership & PEP Screening: Andorran law mandates disclosure of beneficial ownership and screening for politically exposed persons (PEPs) in financial transactions.

Andorra has explicit tax guidance for cryptocurrency gains, taxing them at 10% under the savings income base for both residents and non-residents, including crypto-to-crypto exchanges, under the Digital Assets Law (Law 24/2022) and related income tax rules.

Income Tax: For residents, distributions from Andorran SICAVs are generally exempt from personal income tax.

VAT now applies to the sale (disposal) of cryptocurrencies in Andorra.

No crypto‑specific licensing exists in Andorra as of 2025‑2026. AFA confirms the absence of dedicated crypto regulation within existing statutes (AFA).

Minimum patrimony for OICs is €1,250,000, with higher thresholds for real estate schemes. Article 4 of Llei 10/2008 outlines the minimum patrimony requirements for different types of investment funds (SICAV capital requirements).

Andorra is not monitored by FATF, indicating no dedicated oversight for crypto activities. The FATF’s website confirms Andorra’s non‑monitoring status as of the latest review in 2024 (FATF Status).

Tax treatment: No VAT on crypto sales is explicitly stated under Llei 94/2010, aligning with the broader exemption for non‑resident transactions (Llei 94/2010).

Enforcement: The last AFA press release dated March 2025 affirms no enforcement actions against crypto entities, reinforcing the current regulatory vacuum (AFA Press Release Mar 2025).

Structural requirements for OICs are detailed in Article 4 of Llei 10/2008, mandating minimum patrimony thresholds and governance structures (Llei 10/2008 Art. 4).