New tourism tax in Andorra 2022

As of 1 July, Andorra introduced a tourist tax for stays in tourist accommodation ranging from 1 to 3 euros per night. The aim of this new tax is to be used exclusively to boost tourism in the country, to promote it or to promote sustainability. The Andorran government estimates annual revenue of around 12 million euros.

It is possible that this type of direct tax will be familiar to tourists as it is currently applied in other European cities such as Paris, Malta, Lisbon, the Balearic Islands, etc.

The rules for the application of this tourist tax in Andorra are as follows:

• A maximum taxation limit of 7 days is established. This means that for stays of up to 7 days in the same tourist accommodation, the client will have to pay the corresponding tax for each day. From the 8th day onwards in the same accommodation, the tax is exempted.
• The tax is paid per person and per day.
• Children under 16 years of age are exempt from this tax.
• Residents of Andorra are also exempt from this tax.

The price of the fee varies according to the category of tourist accommodation and is payable per night and per person:

5-star tourist accommodation	3 euros
4-star or 4-espigas* tourist accommodation	2 euros
Houses for tourist use	2 euros
Tourist accommodation 2 or 3 stars – 2 or 3 espigas* or in the process of being classified	1.5 euros
All other tourist accommodation such as guesthouses or campsites	1 euro

*espigas is the equivalent unit to hotel stars, but for rural accommodation.

In the Official Gazette of the Principality of Andorra  – BOPA No. 76, published on 22 June 2022, you can find the details of Law 19/2022 of 9 June, which explains the tax on stays in tourist accommodation. It also explains that the funds raised by this tax will be used to finance projects or actions that pursue the following objectives:

• The promotion of tourism in the Principality of Andorra.
• The promotion of sustainable, responsible, inclusive and quality tourism.
• The protection, preservation, recovery and improvement of tourist resources.
• The promotion, creation and improvement of tourism products.
• The development of infrastructures and services related to tourism.
• Actions to deseasonalise tourism.
• The promotion of training activities aimed at people in sectors directly related to tourism.

How is this tourist tax paid in Andorra?

The tourist will pay the tax corresponding to the tourist accommodation multiplied by the number of nights he/she is staying, up to a maximum of 7 nights in the same accommodation. If you change accommodation, the previous nights are not taken into account. For example, a person staying in a 5-star hotel for 10 nights will have to pay a tourist tax of 7 x 3 = 21 euros. Another person who stays the same 10 days but in different 5-star hotels, without exceeding 7 days in any of them, will pay a total of 10 x 3 = 30 euros in tourist tax, distributed between the different accommodations in which he/she has stayed.

How is this tourist tax collected in Andorra?

In general, the holders of tourist licences are responsible for the tax, unless they act via intermediaries. In the latter case, they are the ones who are responsible for the tax. They are obliged to pay it quarterly to the Ministry of Finance.