Double taxation treaties (DTT)

Double taxation

Double taxation treaties (DTT) are international treaties design to avoid double taxation through a series of measures implemented by the two parties to the treaty.

Double taxation treaties are intended to promote foreign investments and favour the competitiveness of domestic companies abroad. These treaties apply to both natural persons and legal residents of any signatory country and affect taxes on income and assets. The treaties establish which of the two contracting states is entitled to receive the tax revenues.

“Double taxation treaties facilitate the promotion of foreign investments and favour the competitiveness of domestic companies abroad” 

The Principality of Andorra, in line with its economic openness and process of harmonisation with international standards, has seventeen DTAs in place (France, Spain, Luxembourg, Liechtenstein, Portugal, United Arab Emirates, Malta, Cyprus, San Marino, Hungary, Croatia, Monaco, Czech Republic, Iceland, Netherlands, Lithuania, and the Republic of Korea) and three signed DTAs (Latvia, Romania and Montenegro). Currently, Andorra has the DTA with the United Kingdom of Great Britain and Northern Ireland pending ratification. Moreover, it has initialled an agreement with Belgium, which is pending signature.