{"id":25250,"date":"2026-09-17T10:05:26","date_gmt":"2026-09-17T08:05:26","guid":{"rendered":"https:\/\/creandgroup.com\/opinion-article\/la-fiscalitat-dels-actius-digitals-a-andorra-el-criteri-de-ladministracio-tributaria\/"},"modified":"2026-09-17T10:30:47","modified_gmt":"2026-09-17T08:30:47","slug":"taxation-of-digital-assets-in-andorra-the-tax-authoritys-criteria","status":"publish","type":"opinion-article","link":"https:\/\/creandgroup.com\/en\/opinion-article\/taxation-of-digital-assets-in-andorra-the-tax-authoritys-criteria\/","title":{"rendered":"Taxation of digital assets in Andorra: the tax authority’s criteria"},"content":{"rendered":"
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Andorra has experienced notable growth in the contracting of services related to digital assets, and the country’s financial institutions have been adapting to this growth.<\/p>\n

This reality found a first frame of reference with Law 24\/2022, of 30 June, on the digital representation of assets through the use of cryptography and distributed ledger and blockchain technology, a regulation that legally recognises these assets and regulates the regime of the entities that operate in them. Its second additional provision establishes a specific tax regime for digital assets: it provides for the FIFO method (the first assets purchased are the first sold) and the timing of the imputation of the gain in exchanges and, very importantly, a reduction coefficient of 25% per year for each year of holding from the second year onwards, provided that the asset has not been exchanged for fiat money or other digital assets and the amount obtained has been reinvested entirely in assets located in Andorra.<\/p>\n

However, the Department of Taxes and Borders (DTF) has established criteria through several binding tax consultations issued during 2025\u2014CV0337-2025 and CV0343-2025, on Personal Income Tax, and CV0355-2025, on IGI\u2014which conclude that Law 24\/2022 does not repeal or amend Law 5\/2014, of 24 April, on Personal Income Tax. Consequently, none of the special rules provided for in the second additional provision\u2014neither the valuation method nor, above all, the reducing coefficient\u2014is applicable today. The capital gain or loss derived from the transfer of digital assets is therefore determined by the difference between the acquisition value and the transfer value, without any reduction for the holding period or reinvestment. Likewise, any generally accepted valuation method may be used, such as weighted average cost or LIFO (last-in, first-out), provided that the chosen criterion is maintained until the total transfer of assets of the same class.<\/p>\n

This criterion is mainly based on article 8 of Law 21\/2014, of 16 October, on the tax system (LBOT), which requires that any law that amends tax regulations do so expressly, with a complete list of the repealed regulations. Law 24\/2022 does not meet this requirement, and the Administration understands that its tax provisions do not apply and that the general Personal Income Tax regime continues to be valid, in accordance with the principles of generality, equality and economic capacity set out in article 3 of the LBOT.<\/p>\n

From a legal perspective, this interpretation is consistent with the principle of legal reserve in taxation and with the requirement of typicity: only a law that expressly regulates tax aspects can create, modify or eliminate tax obligations, and Law 24\/2022 is, in essence, a sectoral regulation. This is a technically defensible reading, although it means that the incentives that the legislator seemed to want to introduce\u2014in particular, the annual reduction for holding and reinvestment in Andorra\u2014remain, for the time being, without practical effect, and opens a legitimate debate on the advisability of expressly incorporating them into the Personal Income Tax.<\/p>\n

The classification of the income also depends on the type of activity. In occasional transactions by an individual, the gain constitutes a capital gain integrated into the savings base, with an exempt minimum of 3,000 euros (Article 37 of the IRPF), and is taxed at the general rate of 10% (Article 43). \u00a0When the activity is habitual or professional (mining, provision of services or recurring purchases and sales for business purposes), the income is classified as income from economic activity, integrated into the general base, with a personal exempt minimum of 24,000 euros (Article 35) and the same rate of 10%.<\/p>\n

Regarding indirect taxation, CV0355-2025 concludes that platform services for trading, custody and administration, and execution of orders for digital assets on behalf of third parties are not considered “financial services” for the purposes of IGI\u2014given the definition of entities operating in the financial system in Law 35\/2018\u2014and remain subject to the general IGI rate of 4.5%.<\/p>\n

In summary, gains obtained from digital assets are taxed according to the general rules of the IRPF, at a rate of 10%, without a reducing coefficient, and services provided by non-financial entities are taxed at the general IGI rate of 4.5%.<\/p>\n

Finally, Law 26\/2025 of 11 December, amending Law 19\/2016 of 30 November on the automatic exchange of information in tax matters, with effect from 1 January 2026, has included electronic monetary products and digital assets within the scope of the information that must be provided to the adhering jurisdictions.<\/p>\n

Diari d’Andorra, 17.09.26<\/p>\n<\/div>\n <\/div>\n \n <\/div>\n \n <\/div>\n<\/section>\n\n