Foreign policy and defense
Andorra is a nation in Southern Europe. Its capital city is Andorra. Andorra has close relations with Spain and France. The Principality is not an EU member, but has a number of cooperation agreements with the Union and the euro is now the official currency in the country.
The same year that Andorra got its constitution, in 1993, the country became a member of the UN and the Council of Europe. Cooperation agreements with both France and Spain were signed in 1994 (and double taxation agreements with these countries in 2015). Andorra joined the European Security and Cooperation Organization (OSCE) in 1999.
- Countryaah: Overview of business holidays and various national observances in Andorra for years of 2020, 2021, 2022, 2023, 2024 and 2025.
Andorra has cooperation agreements with the EU in areas such as education, transport, the environment and certain taxes. Under a 2004 agreement, Andorra has to pay tax on savings that EU citizens take from their accounts in the country. In March 2015, the EU started association negotiations with Europe’s micro-states, in addition to Andorra, also Monaco and San Marino.
In June 2011, Andorra had signed an agreement with the EU to introduce the euro as the official currency in the country. Andorra then also undertook to apply EU law in the area of financial supervision to prevent fraud and money laundering. Two years earlier, Andorra had reformed its tax legislation and removed from the OECD’s black list of tax havens. Since 1991, there has been an agreement on a customs union with the EU.
In February 2016, Andorra signed an agreement with the EU to avoid tax evasion and money laundering by raising the confidentiality of data on EU citizens’ financial assets and income in the country’s banks. The agreement came into force in 2018. Andorra was one of the countries that the EU listed in 2017 as a country that does not meet the requirements of the EU in terms of, among other things, tax transparency and tax evasion legislation. But it was removed from the black list in December of that year.
The Principality has no defense but relies on neighboring countries. There is a small police force that acts as a home defense. All adult men who own guns must line up when required. War documents have not existed for more than 700 years, and the main task of the Home Guard is to parade with the flag at official ceremonies.