Cryptocurrencies in Andorra: legal framework for digital assets, authorisation, taxation and mining

The legal framework

Llei 24/2022 of 30 June 2022 regulates the digital representation of assets by means of cryptography and distributed ledger technology. It is supplemented by decree 478/2022 of 23 November 2022 on the requirements for acting as a registered digital intermediary. Its classification of tokens is inspired by the European MiCA regulation, which does not apply directly in Andorra; tokens that are financial instruments fall under a different regime.

Who must be authorised

An entity that wishes to issue, hold or exchange digital assets in Andorra must obtain the express authorisation of the Andorran Financial Authority (AFA). According to professional commentary on the law, the review covers the business model, the technology systems, the good repute and solvency of the directors, financial capacity, minimum capital and civil liability insurance. A representative (a registered digital intermediary) is required before the AFA. Supervision of anti-money laundering falls to the financial intelligence unit (UIFAND); platforms and custodians have been reporting entities since Llei 37/2021.

For an individual

• Holding or trading cryptocurrencies personally is not an authorised activity within the meaning of the law; it is the provision of services to third parties that is.
• Taxation. The text of the IRPF law (2014) that we re-read contains no provision on virtual currencies. A binding tax ruling from 2020 dealt with the case of a resident who had bought and sold bitcoin in 2018: the treatment depends on how the transaction is classified and on the acquisition cost. Private sources mention a rate of 10 %verified on 09/10/2026 on capital gains: we do not publish it as a rule without a precise text.
• French resident. France taxes the capital gains on digital assets of people domiciled in France: an Andorran residence permit does not change this as long as the tax domicile remains in France. See leaving France.

For a company

A company that holds crypto-assets on its own account remains subject to corporate income tax of 10 %verified on 09/10/2026; a company that provides digital asset services must be authorised by the AFA and open a bank account, which is often the hardest point: see company account and fintech and asset management.

Mining

Mining is an economic activity (electricity, equipment, income) that may fall under corporate income tax or IRPF depending on the structure. We have not found a specific text: have the activity classified before investing.

What we do not confirm

The official text of Llei 24/2022 and the AFA's up-to-date guidelines have not been re-read directly; the points above come from professional commentary and the press. Check the official gazette and with the AFA.