Spain's Tax-Free Scheme Returns €6.2M to Andorran Shoppers in 2025, Down 5.7%

Spain's tax-free scheme returned €6.2 million to Andorran shoppers in 2025, marking a 5.7% decline from the previous year despite more forms being issued and validated.

Data from the Spanish Tax Agency (AEAT) show that 167,224 DIVA forms—used to claim VAT refunds on purchases—were issued from 1 January to 31 December 2025. Of these, 158,502 were stamped and approved, entitling recipients to refunds totalling €6,218,215. This represents a drop of €374,514 compared to 2024, when €6,592,729 was reimbursed across 149,607 validated forms.

The number of forms issued rose from 157,088 in 2024, bucking the downward trend in total refunds. Even so, the 2025 figure exceeded 2023 levels, when 129,254 forms yielded €5,049,142 in refunds.

Most claims involved everyday food purchases, underscoring Andorrans' habit of crossing the border for groceries. La Seu d'Urgell supermarkets have drawn shoppers from the Principat with competitive prices and tax-free options as an added incentive.

Shoppers must still pay Andorra's IGI tax on purchases over €300 if claiming Spanish VAT refunds. Since 2024, a mobile app has simplified this process. Altaveu repeatedly requested 2025 IGI declaration data from the Andorran government but received no response.

The scheme gained popularity after Spain scrapped its €90 minimum purchase threshold, though cross-border shopping remains a staple for Andorrans seeking value on routine items.