Andorra and Spain sign double tax avoidance treaty

On January 8th the presidents of Andorra and Spain have signed the double tax avoidance agreement between both countries. The treaty will now have to be ratified by each country’s parlament before it may enter into effect. Andorra has high expectations from this new treaty as it will facilitate foreign direct investment of mostly Spanish companies wishing to trade from and with Andorra, but also allow Andorran companies to operate from Spain while avoiding or reducing withholding taxes.