Andorra Government Posts €2.3M Q1 2026 Surplus on Tax Surge

Andorra's government recorded a €2.3 million surplus in the first quarter of 2026, with revenues of €139.3 million exceeding spending of €137.14 million, a 12% rise from the same period in 2025.

Personnel expenses led the spending growth, increasing 8% to €39.3 million from €36.5 million. This reflected implementation of new public sector salary scales, 2025 consumer price index adjustments, triennia payments for interim staff, new triennia for permanent employees, and consolidation of budgeted positions. Basic pay for permanent staff rose 7% to €28.3 million from €26.4 million, while contributions to the Andorran Social Security Fund (CASS) also increased 7%.

Direct taxes drove the revenue surge, up 32% to €28.9 million overall. Corporate tax collections jumped 37% to €11.78 million from €8.6 million, indicating strong business performance in a supportive economic climate. Officials noted that main corporate tax inflows occur in July and September, but the first-quarter results signal positive momentum. Personal income tax (IRPF) climbed 28% to €12 million from €9.4 million, capturing economic expansion and wage updates to maintain purchasing power. Non-resident income tax grew 30% to €5.1 million.

Goods and services spending rose 13% to €6.8 million from €6 million, linked to higher school ski package costs and technical studies. Current transfers increased 21%, reflecting boosted subsidies for professional sports, congregational schools, CASS, and the Andorran Health Service (SAAS). Financial costs fell 4% to €3.8 million from €3.98 million.

Indirect taxes produced varied outcomes. VAT advanced 8% to €52.18 million from €48.48 million, supported by steady prices and vigorous economic activity. Tobacco consumption tax dropped 11% to €21 million from €23.4 million, influenced in part by the RN-20 road closure due to a Pas de la Casa landslide. Fuel excises declined 14% to €12.48 million from €12.96 million. Property transfer tax rose 32% and tourist tax 8%, while foreign real estate investment tax eased 6% to €3.75 million from €3.99 million.

For full-year 2025 public sector outcomes, aggregate expenses reached €1.800 billion, up 8.3%, with revenues at €1.902 billion, a 7% increase, producing a surplus of roughly €100 million. Excluding financial assets and liabilities, expenses totalled €1.691 billion (up 7.9%) and revenues €1.864 billion (up 9.1%). Central government expenses grew 9.6% to €668.5 million, revenues 13.4% to €727.6 million. Local administrations saw expenses up 1.4% to €208.1 million, revenues 4.5% to €230.4 million. Social security funds recorded expenses up 6.9% to €506.3 million, revenues 6.8% to €506.8 million. Public non-financial companies—including FEDA and subsidiaries, Andorra Telecom, Ramaders d’Andorra, and Diquital—had expenses up 15.3% to €241.4 million, revenues down 7.3% to €247.8 million. The Andorran Financial Authority (AFA) cut expenses 25.8% to €3.4 million.