EU Council adopts updated tax-information exchange protocol with Andorra

The Council of the European Union has formally adopted the decision to conclude an amending protocol to the bilateral agreement with Andorra on the automatic exchange of information on financial accounts. The modification, signed on 13 October 2025 by the European Commission and Andorran authorities, aligns the existing framework with the updated OECD standard that comes into effect on 1 January 2026.

The protocol ensures that the exchange of information between Andorra and EU member states complies with the OECD’s revised rules for automatic information sharing, the international basis for tax cooperation aimed at combating fraud and tax evasion. Andorra’s amendment is part of a broader package that also covers Switzerland, Liechtenstein, Monaco and San Marino, but is especially notable given Andorra’s status as a third country associated with the EU through various agreements and its recent strides in tax transparency.

The European Parliament issued a favourable opinion on 13 November, and the Council ratified the protocol days later during a session in which the protocols with the other small European states were also approved. The agreements are intended to take effect from 2026 in line with the new OECD requirements.

Under the adopted protocol, technical and legal obligations are established to ensure that Andorran financial institutions regularly transmit to the country’s tax authorities information on accounts held by EU residents. The data to be reported includes account balances, investment income, interest, and details of financial transactions, enabling automatic exchange with EU tax administrations.

The change marks a further step in normalising Andorra’s fiscal relations with the EU and reflects a renewed commitment to transparency and international tax cooperation.