Expense management module › Global expense management › Andorra
Last updated : 12.05.2026
Expense rules in Andorra.
Andorra applies IGI (VAT) at 4.5%, one of the lowest rates in Europe. Pyrenees principality, EUR official but outside EU.
Get started →Disclaimer: This country guide is provided for informational purposes only and does not constitute legal advice. Although we update it regularly, it may not reflect ongoing regulatory changes. Illizeo SA declines all responsibility for actions taken or not taken based on this content.
1Expense rules & reclaimable VAT
IGI 4.5% standard, 1% essentials, 2.5% reduced, 9.5% banking/insurance.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 4,5% | Deductible | Invoice + NRT |
| Lodging | 4,5% | Deductible | NRT |
| Alcohol | 4,5% | Limited | Excluded |
| Fuel | 4,5% | Deductible | Invoice |
| Transport | 4,5% | Deductible | Taxi/airfare |
| Gifts | 4,5% | Non-deductible | Cap |
Receipt
Invoice
NRT mandatory
SourcesAndorra Tax Department
2Mileage allowance
Actual.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel | Invoice |
| Company car | – | Card | – |
| Taxi | – | 100% receipt | Invoice |
Tracking
Logbook
Date, distance
SourcesAndorra Tax Department
3Per diem and travel allowances
Company policy. Andorra la Vella.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Andorra la Vella | EUR 25 | EUR 100 | EUR 170 |
| Escaldes | EUR 22 | EUR 90 | EUR 150 |
| La Massana | EUR 20 | EUR 80 | EUR 135 |
| Other | EUR 18 | EUR 75 | EUR 125 |
Currency
EUR
Outside EU eurozone
SourcesAndorra Tax Department
4Foreign VAT recovery
AD Residents + limited reciprocity.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| AD Resident | IGI credit | Monthly/quarterly | Return |
| EU | Reciprocity | June 30 | Conditions |
| Non-EU | None | – | Final cost |
Limitations
3 years
Keep
SourcesAndorra Tax Department
Centralize your Andorra expenses
Illizeo handles NRT invoices and IGI compliance for your teams in Andorra.
Book a demo