A double tax treaty between France and Andorra was signed on 2 April 2013. No further details of the agreement are currently available.
Andorra was removed from the OECD list of uncooperative list of tax havens in 2009, and in that year signed agreements for the exchange of tax information with a number of European jurisdictions including France. France has recently expressed its willingness to enter into a comprehensive double taxation agreement provided that Andorra introduced direct taxation on corporations and individuals.
In 2011 Andorra introduced a 10% withholding tax on the income of non-residents and a corporation tax of 10% for non-resident businesses. A 5% corporate income tax applies to residents. A value added tax is being implemented in 2013 with a standard rate of 4.5% and a reduced rate of 1% for essential goods and services. An 8% VAT rate is to apply to banks and financial services.
