Andorra Crypto Tax Guide: CGT, Income, CIT 2026
Andorra treats cryptocurrency gains as either capital gains or income depending on the taxpayer's activity. Individuals holding crypto as an investment benefit from the 0% CGT on financial assets. Frequent traders and businesses are taxed at PIT rates (0-10%) or CIT (10%). Mining and staking income is typically treated as business income. Here is how crypto taxation works in 2026.
Andorra's tax treatment of cryptocurrency follows general tax principles. The territorial system means that only crypto gains from Andorran-source activities are taxed. Long-term holders benefit from Andorra's favourable 0% CGT on financial assets, while active traders and businesses are subject to standard income and corporate tax rates. The Departament de Tributs i Fronteres has issued guidance indicating that cryptocurrencies are treated as financial assets for CGT purposes. Capital gains tax rules →
Real-world example: An individual buys Bitcoin for €20,000 and sells 2 years later for €60,000. Since this is a financial asset held long-term, CGT = 0% (shares/securities rate). Total tax: €0. A day trader executing frequent crypto trades with €80,000 in annual gains: treated as business income, taxed at progressive PIT 0-10% = up to €8,000. A company mining crypto with €100,000 profit: CIT at 10% = €10,000. Corporate tax rates →
Tax Classification of Crypto Activities
- Long-term holding (investment): Gains treated as capital gains on financial assets — 0% CGT. No tax on appreciation until disposal
- Frequent trading (business): Gains treated as business income — taxed at progressive PIT rates 0-10% for individuals or CIT 10% if conducted through a company
- Mining: Income from mining is treated as business income — taxed at PIT or CIT rates. Mining equipment costs may be deductible
- Staking and DeFi yield: Generally treated as investment income or business income depending on activity level
- NFTs: Treated as digital assets — gains follow the same classification as crypto (CGT or income)
- Airdrops and forks: Generally treated as income at fair market value at receipt, taxed at PIT rates
Crypto-to-Crypto Transactions
In Andorra, crypto-to-crypto trades (e.g., Bitcoin to Ethereum) are generally considered taxable events. The disposal of one cryptocurrency for another triggers a gain or loss calculation based on the fair market value. For long-term holders classified under CGT rules, such trades result in 0% tax if the crypto is treated as a financial asset. Frequent traders would recognize taxable gains on each trade.
Record Keeping and Reporting
- Maintain records of all crypto transactions: date, value in EUR at transaction time, counterparty, transaction hash
- Use crypto tax software or a tax professional to calculate gains/losses in EUR
- Report crypto income and gains in the annual tax return (individual by April 30, corporate by March 31)
- IGI at 4.5% may apply to crypto exchange fees and advisory services
The Departament de Tributs i Fronteres may request crypto transaction records during tax audits. Andorra is implementing OECD Crypto-Asset Reporting Framework (CARF) standards.
Is crypto-to-fiat conversion taxable?
Yes. Converting cryptocurrency to euros or any fiat currency is a disposal event that triggers a gain or loss calculation. The gain is the difference between the sale proceeds and the cost basis in EUR. Long-term holders may benefit from 0% CGT on financial assets.
Do crypto exchanges need to register in Andorra?
Yes. Crypto exchanges and wallet providers operating in Andorra must register with the relevant authorities and comply with Anti-Money Laundering (AML) regulations. They may also need IGI registration on their service fees.