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 Swag 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 Swag for Employees
Work-Related (Generally Non-Taxable)
Necessary Tools & Uniforms
If the swag 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 categorized 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 modernized many of its financial regulations. Maintaining transparent records and keeping gift values at a reasonable level mitigates risk.
1.3 Marketing Swag
Promotional Swag
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 swag 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
Because Andorra lies outside the EU customs union, shipping swag 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.
2.2 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 Swag customs
Personal Relationships
Business relationships in Andorra often have a personal dimension—trust and rapport matter. Carefully chosen, thoughtful gifts or well-crafted swag can reinforce that bond.
Language Sensitivities
Catalan is the official language, though Spanish and French are also commonly spoken. Adding Catalan elements (like a phrase or greeting) can show respect for local culture.
Gift Occasions
Christmas (Nadal) is a key festive season in Andorra; many companies also do a small New Year gesture.
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
Eco-Friendly Interest
Although Andorra is known for tax advantages, environmental awareness is growing—particularly due to tourism and the country’s natural landscapes. Sustainable or low-impact packaging may resonate positively with recipients.
Labeling Requirements
If your swag includes electronics, health-related products, or food items, ensure compliance with local (or EU-based) safety/labeling rules. Clarify if you need additional language labels (e.g., Spanish, Catalan, French).
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
Remote Employees
If collecting personal addresses for shipping, follow standard data protection practices. (Andorra has its own data protection regime, partially aligned with EU guidelines.)
Onboarding & Retention
Providing newly hired staff with branded swag or accessories typically does not incur tax concerns if it’s clearly job-related or a modest welcome gesture.
6. Summary and Key Takeaways
6.1 Summary & Takeaways
Employee Swag vs. Benefits
Clearly work-related gear (branded uniforms, essential tools) is generally non-taxable. Purely personal or high-value gifts may require income tax or social security contributions.
B2B Gifting & Marketing
Gifts can be deductible if tied to a legitimate business purpose. Promotional items often fall under marketing expenses, provided documentation is clear.
Shipping & Customs
Andorra has a special customs relationship with the EU for industrial goods. IGI (4.5%) replaces traditional VAT, potentially plus duties on non-EU or non-qualifying items. Monday Merch can help navigate partial duty relief via correct origin certificates.
Cultural Focus
Emphasize quality and local relevance (Catalan, Spanish, or French language). Building trust is key—thoughtful gifts align well with Andorran relationship-based business culture.
7. Frequently Asked Questions
7.1 Questions & Answers
Is shipping straightforward to Andorra?
Yes, but although 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.
Sources
Andorran Tax Department (Departament de Tributs i Fronteres) – Official site covering IGI, income tax, and customs info.
Chamber of Commerce, Industry, and Services of Andorra – Business resources, local regulations, and support.
Ministry of Finance Andorra – Broad information on Andorra’s financial policies and import guidelines.
Disclaimer
This guide is for informational purposes only and not legal or tax advice. Always consult local experts or official authorities for the latest regulations in Andorra.
