5 - December / 2018

Andorra finally exits the EU's grey list of tax havens

The ministers of Economy and Finance of the European Union (EU - Ecofin) agreed, on December 4th, 2018, the exclusion of Principality of Andorra from the grey list of tax havens. Finance Minister Jordi Cinca highlighted the Government and the banking sector's commitment towards fiscal transparency and international standardisation, as well as the adoption of the most demanding international standards. He therefore welcomed the fact that Andorra has once again obtained international recognition for the work done in recent years.

Cinca presented the legislative modifications being implemented in the last year, allowing Andorra to be removed from Annex II of the Ecofin conclusions. On December 5th, 2017, Andorra was part of the “grey list” with 46 more States. This Annex II was aimed at jurisdictions having firmly committed themselves to correcting deficiencies, outside the black list.

In this regard, Andorra have modified adequately its tax framework. In particular, the country amended its Corporate Tax removing two of the existing special tax regimes and amended two others.
Ecofin considered Andorra's new tax regimes are no longer considered potentially harmful. In this way, Andorra is consequently positioned as a cooperating jurisdiction in tax matters.

Text: Govern d'Andorra