Andorra's Net External Assets Surge 7.4% to €5.1 Billion in Q4 2025

Andorra's net external assets rose 7.4% year-on-year in the fourth quarter of 2025, reaching €5,147.3 million from €4,790.9 million, according to the government's statistics department on monetary and financial health.

The increase stemmed from a 2.2% expansion in assets held with non-residents, from €7,978 million in Q4 2024 to €8,162 million, alongside a 5.7% drop in liabilities with non-residents, from €3,197 million to €3,014 million. These shifts strengthened the Principality's external financial position and financing capacity, with trends showing accumulation of liquid assets and restraint on external obligations.

Liquidity metrics edged higher. Net assets with the Central Bank climbed slightly to nearly €70 million. Net assets against the central government, local authorities, and non-financial public companies reached €162.4 million, a 0.9% annual gain. These represent claims by Andorran residents on public sectors minus their obligations to them. Quarter-on-quarter, assets in this category dipped 1.1%, while liabilities fell 2.2%.

Credit to other sectors expanded 7.1% over 12 months, hitting €3,974.7 million from €3,685 million a year earlier—though one report lists the prior figure as €3,948 million. Over 95% went to the private sector, primarily households and non-financial firms, underscoring steady financing demand and reliable intermediation by deposit-taking institutions.

The broad monetary aggregate M3 grew 5.2% to €7,290 million from €6,932 million, comprising 67% transferable deposits (down 0.1% quarter-on-quarter), 30% other deposits (up 8.2%), and 3% other securities excluding shares (down 6.4%). This points to expansion driven by less-liquid but readily convertible assets.

These indicators reflect improved external positioning, liquidity, and monetary growth amid financial stability.

Separate government accounts for full-year 2025 revealed a €88 million surplus, fueled by strong tax performance. Indirect taxes totaled €364.8 million, up 3% from 2024, led by a 13% surge in IGI collections to €185.7 million (+€20.8 million). The foreign property investment tax hit €19.18 million, 41% above 2024's €13.6 million and more than double the budgeted €9.35 million, signaling robust foreign real estate purchases despite its intent to curb them. Property transfer tax reached €4.3 million, up 58% from €2.7 million. The empty homes tax yielded just €42,875, covering only 428 square meters. Consumer tax fell 18% to €91.7 million due to import shifts and prior rate hikes. Gaming tax rose to €2.2 million, incorporating prior-year casino revenues. Patrimonial income climbed 27% to include €8.4 million in FEDA dividends.

The government transferred €52.7 million to CASS to cover general branch deficits and benefits, part of €101.8 million in health spending (+€5.4 million). Pending litigation risks totaled €650,696, plus IMF-related contingencies.