Josep Garcia
by Josep Garcia
Andorra ranks among Europe's smallest nations as well as being the only country in the world having legislative co-principality. Because of its tiny size, political traditions, geographic location, and other historical concerns, Andorra has an unusual relationship with the European Union (EU).
Andorra had bilateral agreements with the two countries with which it shares a border until 1990, when the customs union agreement between Andorra and the EEC was concluded. The bilateral agreements came to an end because their content was not compatible with the Treaty of Rome (which formed the EEC), with community regulations, or with GATT (General Agreement on Tariffs and Trade) laws.
The customs union agreement, which is still in effect today, creates a customs union for industrial items only. Agricultural items, despite being outside the customs union, are included in the customs union agreement so agricultural products of Andorran origin are exempt from import charges in what is still the European Economic Community.
Thirty-three years after signing the customs union agreement with the then EEC, the principality is negotiating an association agreement with the EU in order to bring the EU and the principality as close as possible. Andorra's legislation has also steadily adapted to the requirements of the European environment during the past three decades.
The nation's political determination to edge closer to Europe in other domains is evidenced by the ratification of official treaties with the EU, such as the above-mentioned customs union agreement (1990), as well as additional treaties, including:
Cooperation agreement (2004)
Agreement on the taxation of savings income (2004)
Monetary agreement (2011)
Agreement on the automatic sharing of fiscal information (2016).
To all of this, we should add the discussions aimed at a cooperation agreement which began in 2015 and are still continuing.
Read the full version on GGI Forum.
GGI member firm Advantia AssessorsAndorraT: +376 802250
Advisory, Auditing & Accounting, Corporate Finance, Fiduciary & Estate Planning, Tax
Advantia Assessors is an accounting and tax consultancy company located in Andorra la Vella. Advantia Assessors predominantly serves Andorran entities of foreign investors, mid-sized Andorran companies with cross-border activities and wealthy private individuals.Josep Garcia is Founder and Managing Partner of Advantia Assessors. He is an Andorran Accountant and Andorran Tax Advisor and Specialist Advisor for International Taxation with more than 10 years of experience. Since 2018, he is Board member of the Andorra Tax Advisors Association. Contact Josep.
