General Council of Andorra approved the Law “On the automatic exchange of tax information” on 30th November 2016. The law was supported by all parties and groups, which means the end of the institute of banking secrecy in Andorra.
Speaking at the meeting, the Minister of Finance of Andorra Jordi Cinca said about the need to fully adapt to the current requirements of the OECD and to support the image of the country as a state of anti-money laundering and fighting tax fraud. “This is our next step towards full financial transparency”, said Jordi Cinca.
The automatic exchange of tax information will come into force in Andorra in 2018 (based on data for 2017). First of all, it involves the individual accounts, which accumulated over 1 mln. euro. In 2019 the automatic exchange of information will start with the accounts with less than 1 mln euro. In the first stage, a fully automated exchange process will only take place with countries inside EU, and those countries with which Andorra signed agreements on avoidance of double taxation.