Political and Economic Situation
Understanding the political and economic situation of Andorra means grasping the keys
to a stable, attractive and future-oriented environment.
Politics
Political situation in Andorra
Institutional stability
Andorra remains a parliamentary principality with a stable political system, guaranteeing the continuity of reforms.
Relations with the European Union
Although not a member of the EU, Andorra benefits from specific agreements:
- Customs union for certain industrial goods.
- Monetary agreement: the euro has been the legal currency since 2002.
- Enhanced cooperation in tax transparency and mobility.
Recent reforms
adoption of the Omnibus Law 2025 aimed at redefining the framework for foreign residents and promoting sustainable growth.
The economy
Economic situation in Andorra
GDP Growth
projections of +1.8% in 2024 and maintains around +1.5% in 2025, in line with the euro area.
Key sectors:
- Tourism: a pillar of the economy, with diversification towards sustainable tourism.
- Real estate: an attractive market thanks to tax reforms and growing demand from expatriates.
- Financial services: solid banks, competitive taxation, attractiveness for international investors.
Taxation
Income tax capped at 10%, corporation tax at 10%, no wealth or inheritance tax.
Diversification
political will to reduce dependence on tourism by developing the technology and heritage sectors.
The vision of the future
Challenges and perspectives
International attractiveness
Andorra continues to attract investors and residents thanks to its tax framework and quality of life.
Challenges
to maintain growth in a slowing European context, manage real estate pressure and ensure an ecological transition.
Opportunities
strengthen its role as a heritage and financial hub, while consolidating its agreements with the EU to secure economic flows
Contact us
Our firm is at your service to quickly assess your situation!
E-mail address :
contact@sol-fiscal.com
Telephone:
Find us:
Plaça Coprínceps, Passatge Bonaventura Móra Munt, 4Bis – AD700 Escaldes-Engordany Entresol 2 (ES)
