Andorra and the UK tax treaty enters into force, covering income, capital gains, and withholding taxes.
The income and capital tax treaty between Andorra and the UK entered into force on 22 December 2025.
The agreement, signed on 20 February 2025, applies to Andorran corporate income tax, personal income tax, tax on income for fiscal non-residents, and tax on increases in the value of immovable property. On the UK side, it covers income tax, corporation tax and capital gains tax.
Withholding tax rates: Dividends are generally exempt at 0%, with a 15% rate applying to certain dividends paid by investment vehicles deriving income from immovable property, unless the beneficial owner is a pension fund, in which case a 0% rate applies. Interest: 0%. Royalties: 0%.
Capital gains: Taxable in the other Contracting State on gains from immovable property, from shares or comparable interests deriving more than 50% of their value from immovable property within the preceding 365 days, and from movable property forming part of a permanent establishment.
The treaty will take effect in Andorra from 1 January 2026, in the UK for withholding taxes from 1 February 2026, for corporation tax from 1 April 2026, and for income tax and capital gains tax from 6 April 2026.
Earlier, the UK issued the Double Taxation Relief and International Tax Enforcement (Andorra) Order 2025 on 10 December 2025. This enabled ratification of the income and capital tax treaty with Andorra.
