Spain and Andorra undertake to step up exchange of tax information

The meeting, held in a friendly atmosphere at the ministerial headquarters, served, among other things, to take stock of the application of the agreement on the exchange of tax information signed in 2010. The two departments undertook to step up collaboration in the future on the exchange of tax information and transparency.

The meeting was also used to tackle the state of negotiations to sign a treaty to avoid double taxation between the two countries. The first round of technical negotiations will start during the week beginning 22 September. The Spanish proposal follows the OECD model for double tax treaties which includes anti-abuse clauses together with other standard safeguards.

The aim of the Ministry of the Treasury is precisely to strengthen treaties of this nature. Similarly, it seeks to extend the network of agreements on the exchange of information. During this legislature, double tax treaties and agreements to exchange information have been signed with Bahrain, Austria, the United Kingdom, India, Uzbekistan, Cyprus, Argentina and the United States. In March of this year, the Council of Ministers authorised the signing of agreements to exchange information with the British Crown Dependencies of Jersey, Guernsey and the Isle of Man.

Similarly, Spain is heading up, together with France, Italy, Germany and the United Kingdom (the G-5) a pilot project to draw up a global and standardised system on the exchange of information based on the FATCA agreement model with the United States.

The negotiations to sign the double tax treaty between Spain and Andorra derive from a commitment made during a meeting between the President of the Government, Mariano Rajoy and the Head of Government of Andorra, Antoni Martí, on 12 September 2012. Shortly after, in March 2013, Cristóbal Montoro and Jordi Cinca gave the go-ahead to the formal start of negotiations.

Visit by Mariano Rajoy to Andorra

Mariano Rajoy and Antoni Martí met again on 2 September at Moncloa Palace. At the meeting, Mariano Rajoy offered Antoni Martí Spain's collaboration in the talks between Andorra and the European Union to achieve full access to the internal market, a continuation of the Free Trade Agreement signed with the European Council in December 2013.

For his part, the Head of Government of Andorra pledged his country's support for Spain's candidature to the United Nations Security Council. Antoni Martí invited Mariano Rajoy to visit Andorra before the end of the year and agreed to set on a suitable date for this official visit, the first by a President of the Government of Spain to the principality.