Andorra’s General Council (parliament) approved  the ratification of the income and capital tax treaty with Romania on 23 January 2025.

The treaty set withholding tax rates for dividends at 0% to 5%, interest at 3%, and royalties at 5%. The agreement will take effect once the instruments of ratification are exchanged and will be applicable starting 1 January of the year following its entry into force.

Earlier, Andorra established 11 Double Taxation Agreements (DTAs) with France, Luxembourg, Spain, UAE, Portugal, Liechtenstein, Malta, Cyprus, San Marino, Hungary, and Monaco. It signed 6 DTAs with Croatia, the Czech Republic, Iceland, the Netherlands, South Korea, and Lithuania.

Signed on 27 September 2024, this is the first income tax treaty between the two countries and aims to prevent double taxation.