Written and reviewed by the Axior Global Advisory Team — Andorra-based tax, corporate and residency advisors.
TL;DR: Andorra taxes realised cryptocurrency gains as savings income under IRPF at a flat 10%, after an annual EUR 3,000 exemption — and only when you are Andorran tax resident. There is no wealth tax, so holding crypto costs nothing, and no inheritance, gift or exit tax. Crypto-to-crypto swaps are treated in practice as disposals that can crystallise a gain, so keep records. Andorra does not force FIFO: any consistent, justified cost-basis method is accepted. Since Llei 24/2022 (the digital-assets law), Andorra has a regulated framework for exchanges, custodians and token issuers supervised by the AFA, and crypto businesses pay the standard 10% corporate tax. The real work is not the rate — it is banking, source-of-funds evidence and becoming tax resident properly.
How Are Crypto Gains Taxed for Individuals in Andorra?
At 10%, as savings income, on the gain realised when you sell or exchange — with the first EUR 3,000 of annual savings income exempt. Under Llei 5/2014 (IRPF), gains on the transfer of assets that are not part of a business activity fall into the savings base, taxed at a flat 10%. A resident who bought 1 BTC for EUR 20,000 and sells it for EUR 80,000 has a EUR 60,000 gain; after the EUR 3,000 exemption (shared with other savings income), the tax is roughly EUR 5,700 — against 19–28% in Spain or up to 24% in the UK.
Unrealised gains are never taxed: Andorra has no wealth tax and no mark-to-market rule for individuals. See our guide to when Andorra’s capital gains tax is 0% for the general rules on shares and real estate.
Key Facts Table
| Item | Andorra (2026) |
|---|---|
| Tax on realised crypto gains (individuals) | 10% flat (IRPF savings base, Llei 5/2014) |
| Annual exemption | EUR 3,000 on savings income |
| Holding crypto | 0% — no wealth tax |
| Inheritance / gift / exit tax | 0% / 0% / 0% |
| Crypto-to-crypto swaps | Treated in practice as a disposal (taxable gain/loss) |
| Cost-basis method | Not restricted to FIFO — any justified, consistent method |
| Losses | Offset against savings gains |
| Staking, lending, mining income | Taxable (savings income or business income, depending on the activity) |
| Crypto companies | 10% corporate tax (IS, Llei 95/2010); AFA registration under Llei 24/2022 for service providers |
| Digital-assets law | Llei 24/2022 — issuers, exchanges, custodians, token frameworks |
| Reporting | Annual IRPF return; CRS/exchange-of-information applies to Andorran banks |
Are Crypto-to-Crypto Swaps Taxable?
In practice, yes — a swap is a disposal of one asset for another and can generate a taxable gain or a deductible loss. Andorran practitioners treat the exchange of one cryptocurrency for another as a transfer for IRPF purposes: the gain is the difference between the market value received and the acquisition cost of the asset given up. This is why traders relocating to Andorra should arrive with complete transaction records. Because the rate is a flat 10% and losses offset gains within the savings base, the compliance burden matters more than the tax bill.
Which Cost-Basis Method Can I Use?
Any consistent and legally justifiable method — FIFO is not mandatory. Unlike Spain, Andorra does not impose FIFO, so early holders can use an alternative method (for example, identifying specific lots or LIFO) provided it is applied consistently and documented. For anyone who accumulated coins over several cycles, this can reduce the taxable gain considerably. Fix the method with your adviser before the first Andorran tax year.
How Are Staking, Lending, Mining and NFTs Taxed?
Income from staking, lending and similar yield is taxable — typically as savings income at 10%; mining or professional trading run as a business is taxed as business income under IRPF (or under corporate tax if incorporated). The line between “investor” and “business” is drawn on facts: volume, organisation, staff, premises and whether the activity is your livelihood. NFT sales follow the same logic as any other digital asset: realised gains are taxable, holding is not. A structured activity may be better placed in an Andorran company.
How Are Crypto Companies Taxed in Andorra?
At the standard 10% corporate tax (IS), with regulated activities requiring AFA authorisation under Llei 24/2022. Andorra’s digital-assets law created a legal framework for the digital representation of assets using cryptography and distributed-ledger technology — covering issuers, exchanges and custodians — and placed supervision with the Andorran Financial Authority (AFA). An Andorran SL running a crypto business pays 10% IS (special regimes at 2% may apply to qualifying activities), 4.5% IGI where applicable, and its Andorran-resident shareholders receive dividends exempt from IRPF. Formation, substance and banking are covered in our company formation guide.
Will an Andorran Bank Accept My Crypto Wealth?
Yes, increasingly — but only with full source-of-funds traceability. Andorra’s banks apply strict compliance: expect to document the origin of the funds used to buy the crypto, exchange statements, wallet histories and the chain from fiat to crypto and back. Poorly documented applications are declined. This is usually the pacing item in a crypto relocation, ahead of the immigration file itself.
What Do I Need to Become Andorran Tax Resident?
A residence permit plus genuine tax residency — more than 183 days a year in Andorra or your centre of economic interests there. The routes are passive residency (EUR 1,000,000 investment or EUR 400,000 via the Housing Fund, plus a EUR 50,000 non-refundable contribution under Llei 2/2026), active residency through an Andorran company, or the digital nomad permit. The permit alone does not change where you pay tax — the 183-day rule does, and your former country’s exit rules still apply (Spain’s and Germany’s exit taxes, the UK’s temporary non-residence rules).
FAQ
What is the crypto tax rate in Andorra?
10% on realised gains, as IRPF savings income, after a EUR 3,000 annual exemption. Holding is untaxed (no wealth tax).
Do I pay tax when I swap one cryptocurrency for another?
In practice, yes: a swap is treated as a disposal, so gains (and losses) are computed at each exchange.
Is there a holding-period exemption for crypto?
The 10-year exemption in Llei 5/2014 is designed for shareholdings; it should not be assumed to apply to cryptocurrencies. Plan on 10% on realised gains.
Does Andorra have a crypto law?
Yes — Llei 24/2022 on the digital representation of assets using cryptography and blockchain, with AFA supervision of service providers.
Can I run a crypto trading business from Andorra?
Yes, through an Andorran company (10% corporate tax) with the relevant AFA authorisation where the activity is regulated; substance and banking compliance are essential.
Is crypto income reported automatically?
Andorra participates in the OECD Common Reporting Standard; Andorran banks exchange financial account information with partner jurisdictions.
Sources
- Llei 5/2014, del 24 d’abril, de l’impost sobre la renda de les persones físiques (IRPF) — Portal Jurídic del Principat d’Andorra: https://www.portaljuridic.ad
- Llei 95/2010, de l’impost sobre societats (IS): https://www.portaljuridic.ad
- Llei 24/2022, de la representació digital d’actius mitjançant l’ús de la criptografia i de la tecnologia de llibre registre distribuït i blockchain: https://www.portaljuridic.ad
- Butlletí Oficial del Principat d’Andorra (BOPA): https://www.bopa.ad
- Autoritat Financera Andorrana (AFA) — supervision of digital-asset service providers: https://www.afa.ad
- Llei 2/2026 (Òmnibus 2) — passive residency thresholds: https://www.bopa.ad
Holding significant crypto and considering Andorra? Axior Global structures the residency, the cost-basis method and the bank onboarding file. Book a free consultation.