Capital
Andorra la Vella
Currency
Euro
Languages
Catalan
Population size
0.08M
Average Monthly Salary
€1600
EU
Not a Member
Region
Southern-Europe
Gift Giving Norms
Gifts typically given at year-end
Major Corporate Gift Days
Christmas, National Day
Customs Complexity
Low
VAT - Standard Rate
4.50%
Duty Free Threshold
€45
Ave Duty Rate
2%
1. Employee Merch vs. Gifts
Andorra does not follow an overarching EU framework like the WKR or similar. Instead, general principles for income tax (Impost sobre la Renda de les Persones Físiques – IRPF) and social contributions apply if an item is deemed part of an employee’s compensation rather than a strictly work-related tool.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Necessary Tools & Uniforms
If the merchandise is essential for performing job functions (e.g., branded uniforms, safety gear, or office equipment), it is typically exempt from employee taxation.
Branded Apparel & Accessories
Apparel or accessories prominently featuring the company logo can often be categorised as “work attire” or “promotional gear,” thereby avoiding classification as a taxable benefit.
Potentially Taxable Benefits
High-Value or Non-Work Items
If items have minimal relation to the job (e.g., consumer electronics purely for personal use), they may be viewed as part of the employee’s salary. The employer would need to account for IRPF and any social security contributions accordingly.
Regular Gifting
Repeated gifts or perks—even if individually small—might raise questions about disguised compensation. Andorran law does not specify a fixed threshold for tax-free gifts, so it is best to document the purpose (work-related vs. personal).
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
Business gifts are generally deductible if they are directly linked to promotional or relational objectives. High-value or frequent gifts could face scrutiny from tax authorities.
Compliance & Anti-Bribery
Although Andorra is not in the EU, it has modernised many of its financial regulations. Maintaining transparent records and keeping gift values at a reasonable level mitigates risk.
1.3 Marketing Merch
Promotional Merchandise
Branded items used for advertising (e.g., at events or trade shows) typically fall under marketing expenses rather than personal gifts. Keep invoices and promotional documentation to substantiate their marketing nature.
2. Shipping, Customs & Duties
Because Andorra lies outside the EU customs union, shipping merchandise from EU countries may involve border checks, even if minimal. However, Andorra has customs arrangements with Spain and France, which handle much of its trade.
2.1 Shipping
2.2 Importing
Import Duties & IGI
Goods from non-EU countries typically face import duties (depending on HS code), plus Andorra’s 4.5% IGI on (value + duties + shipping).
2.3 DDP vs. DAP
DDP (Delivered Duty Paid)
The sender covers import taxes/fees, streamlining delivery for the Andorran recipient.
DAP (Delivered At Place)
The recipient pays duties/IGI upon arrival, which could cause delays or unexpected charges.
2.4 With Monday Merch
Our warehouse in Rotterdam can ship to Andorra via Spain or France. Duties and IGI may still apply, but if your items meet EU-origin criteria and fit Andorra’s partial customs union guidelines, we can help provide the correct documentation to reduce or eliminate duties.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Is shipping straightforward to Andorra?
Yes, but though closely tied to the EU, watch small duty thresholds and confirm local rules.
Any tax considerations for gifts?
They typically follow EU-like principles; low-value gifts are often exempt, but check current limits.
Cultural tip for gifting in Andorra?
Keep items practical and modest, reflecting the region’s small-scale atmosphere.
