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Finance
July 30, 2026
A French tax resident who sells cryptocurrencies at a profit is subject to a 30% flat tax. In Andorra, the same gain is taxed at a maximum rate of 10%, after a tax-free allowance of 3,000 euros, and the mere holding of digital assets is not subject to any tax. Here’s how cryptocurrency taxation works in practice in Andorra: taxation, reporting, expatriation, and key considerations.
A dedicated legal framework and a commitment to transparency
Andorra does more than simply tolerate cryptocurrencies: Law 24/2022 of June 30, 2022, establishes a regulatory framework for professional activities related to digital assets and blockchain, under the supervision of the Andorran Financial Authority (AFA). The tax treatment of digital assets is governed both by general personal income tax law and by a specific provision of the law dedicated to digital assets, which introduces rules specific to cryptocurrencies: the time-based allocation method, portfolio valuation, loss carryforward rules, and a holding period deduction.
Another key point: the days when crypto gains went unreported to the tax authorities due to a lack of information are over. Since January 1, 2026, the OECD’s CARF framework and the European Union’s DAC8 directive have required exchange platforms to report their users’ transaction data to tax authorities, and in October 2025, Andorra signed a tax cooperation protocol with the European Union covering digital assets. The Principality’s appeal therefore does not lie in any lack of transparency, but rather in a low-tax system that is transparent and fully legal for its residents.
What taxes apply to cryptocurrencies in Andorra?
Holding: zero tax
Simply holding cryptocurrencies does not result in any tax liability. Andorra does not impose a wealth tax or tax on unrealized capital gains, regardless of the value of the portfolio.
Sale: Maximum 10% after a 3,000-euro deduction
Capital gains on sales are included in the savings base for personal income tax (IRPF), which encompasses interest, dividends, and capital gains. The first 3,000 euros of savings income is tax-exempt each year; any amount above that is taxed at 10%. This tax exemption is therefore not specific to cryptocurrencies: it applies to all of a taxpayer’s savings income.
Example: An Andorran resident buys bitcoins for 10,000 euros and sells them for 50,000 euros, resulting in a gain of 40,000 euros. With no other income from savings, the tax due is 10% on 37,000 euros, or 3,700 euros, compared to a flat tax of 12,000 euros for a French resident.
A 25% deduction per year of holding, starting in the second year, applies to the capital gains realized, provided that the digital assets have been held without being exchanged for fiat currency or other digital assets, and that the proceeds are fully reinvested in assets located in Andorra. For long-term holders who meet the reinvestment requirements, this mechanism can reduce the effective tax rate to well below the nominal rate of 10%.
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Crypto-to-crypto exchanges are taxable
A major difference from France: under Andorran law, exchanging cryptocurrencies for fiat currency or other cryptocurrencies constitutes a taxable transfer. Each swap—for example, Bitcoin for Ethereum—results in a gain or loss on the date the transaction is carried out, regardless of when the investor actually receives the funds in their account. The transfer value used for tax purposes is the amount actually received during the exchange, unless that amount is lower than the fair market value, in which case the fair market value prevails. In France, by contrast, these exchanges benefit from a tax deferral as long as they remain within the cryptocurrency ecosystem. Active traders must factor this into their strategy.
The Calculation Method
The FIFO method (first-in, first-out) is the general rule for the timing of the recognition of cryptocurrency sales. When an investor has conducted multiple transactions involving the same cryptocurrency, the portfolio may be valued using any other generally accepted, reasonable, reliable method that is appropriate for the portfolio’s characteristics. Once a method is selected, it must be used consistently at least until all units of the same cryptocurrency have been fully sold. In the event of an audit, the valuation method used must be supported by any admissible form of evidence. For long-term holders with very low cost bases, this choice can have a significant impact: professional guidance is recommended before any sale.
How do you report your cryptocurrencies?
Capital gains and losses must be reported on the annual personal income tax return of Andorran tax residents. Documentation is crucial: statements from trading platforms, wallet transaction histories, and the dates and amounts of each transaction. This information is used to calculate taxes and is also required for banking purposes, as incomplete traceability of funds is the leading reason for account opening denials.
Losses resulting from the sale or exchange of digital assets may be offset against capital gains for the fiscal year. Any remaining unabsorbed losses may be carried forward and deducted over the next five fiscal years. This specific rule differs from the general time limit applicable to other capital losses, which makes it all the more important to keep accurate track of crypto losses.
Moving Abroad: Rules You Must Follow
Andorran tax benefits are available only to tax residents of the Principality: those who spend more than 183 days a year in Andorra or have their center of economic interests in Andorra, either through active residency—which generally involves setting up a company in Andorra—or through passive residency for investors. The requirements are detailed in our guide to tax residency in Andorra. There is no such thing as crypto tax optimization without an actual, documented transfer of residency.
Should I sell before or after I leave?
This is the most costly mistake to avoid. Capital gains are taxed in the country of tax residence at the time of sale: selling while still a French resident triggers the 30% flat tax, even if the move is imminent. Conversely, unrealized capital gains accumulated before departure are not taxed in France at the time of the transfer: they will be taxed in Andorra, at a maximum rate of 10%, upon sale as an Andorran resident. The correct sequence is: obtain residency, actually establish residence there, and then sell.
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Exit tax: Cryptocurrencies held directly are excluded from the scope
According to the prevailing legal opinion, crypto-assets held directly by an individual as part of their personal assets do not fall within the scope of the exit tax under Article 167 bis of the General Tax Code (CGI), which applies to securities and corporate interests. There are two caveats: cryptocurrencies held within a holding company are indirectly affected, as the company’s shares are fully subject to the provision; and the tax authorities may invoke abuse of rights if the move abroad is intended solely to evade tax. The France-Andorra tax treaty, in effect since 2015, also eliminates double taxation and establishes criteria for determining residency. For more information, see our analyses ofthe exit tax and the France-Andorra tax treaty.
Society, Mining, and Professional Activities
Active investors can structure their business through an Andorran company: corporate income tax is levied at a general rate of 10%, and dividends of Andorran source are exempt from income tax for Andorran tax residents, subject to the conditions of the economic double taxation elimination regime. Please note, however: setting up a company in Andorra without transferring one’s tax residence offers no advantages. A French resident receiving Andorran dividends remains subject to the 30% flat tax, with a risk of reclassification under Article 209 B of the French General Tax Code (CGI) if the company lacks substance.
Mining carried out on a regular basis constitutes an economic activity subject to corporate income tax at the general rate of 10%, provided it is structured through a legal entity. Mining activity itself is not subject to Andorran VAT, as there is no legal relationship involving reciprocal services between the miner and an identifiable beneficiary. Registration of the activity with the authorities remains required under general law, and a specific license from the financial authority may be necessary depending on the exact nature of the services provided. Staking income is subject to personal income tax, with its exact classification depending on the protocol and the taxpayer’s circumstances. Finally, intensive and organized trading may be reclassified as a professional activity.
Andorran Banks and Cryptocurrencies
MoraBanc was the first bank in the country to be licensed for the custody and trading of digital assets, before launching a Bitcoin investment fund. The banking sector has opened up to crypto investors, but compliance requirements remain strict: the source of funds and full traceability are systematically required. Our guide toopening a bank account in Andorra details the documents you’ll need to provide.
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Comparison of Andorra and France
In a Nutshell: The Benefits of Andorra and Cryptocurrency
No capital gains tax, capital gains taxed at a maximum of 10%, and tax-exempt Andorran dividends: Andorra offers one of the most attractive tax frameworks in Europe for cryptocurrencies. There are two non-negotiable conditions: an effective transfer of tax residency, completed before any significant sale, and impeccable compliance with reporting requirements in the context of widespread automatic exchange of information. The timing of sales and the method used to value the portfolio warrant a customized analysis in every case.
Frequently Asked Questions
Is the sale of cryptocurrencies taxable in Andorra?
Yes. Any disposal—whether a sale for euros or an exchange for another cryptocurrency—is a taxable event: the net gain is taxed at 10% on the amount exceeding the 3,000-euro exemption for savings income.
Do you have to report your cryptocurrencies in Andorra?
Yes, realized gains and losses must be reported on your annual income tax return. With the automatic exchange of information (CARF, DAC8), tax authorities now receive data directly from trading platforms: accurate reporting is the only viable approach.
Are cryptocurrencies subject to an exit tax when leaving France?
According to the prevailing legal doctrine, crypto-assets held directly as part of a personal estate are excluded. However, those held through a holding company are indirectly affected through the company’s shares.
Is cryptocurrency mining allowed in Andorra?
Yes. When conducted professionally, it is governed by the law on digital assets and subject to corporate income tax at the standard rate of 10%. Mining, as such, is not subject to Andorran VAT.
