Setting-up a company in andorra

Andorra as a business destination

Andorra as a business destination

Andorra not only attracts tourist, but also positions itself as the ideal destiny for entrepreneurs, for the incorporation of companies and the investment in real estate, located in the Andorran Principality.

Below we give you the keys to creating a company in Andorra.

Low taxation

Very competitive taxation, in both direct and indirect taxes

Connectivity

A fiber optic network and telephone coverage have been established all over the country.

Localization

In Andorra, you will enjoy the tranquility, security and well-being of the country, with the advantage of the proximity to the big cities of Spain and France.

International conventions

Andorra has negotiated diverse international agreements with other countries, including agreements to avoid double taxation and tax evasion, agreements on social security, as well as customs agreements and exemptions with the European Union.

Low social security contributions

Both the Andorran healthcare system and the competitiveness of the contributions have become another attractive aspect of the territory.

Talent hub

Andorra is highlighted as a country with a remarkable concentration of entrepreneurs, innovative professionals and knowledge promoters per square meter, becoming itself as a networking hub in continuous development.

Requirements to create a company in Andorra

Foreign investment

Application & administrative authorization.

Administrative residence permit

Obtaining a residence authorization, according to the right kind of visa.

Types of companies

Public limited company

• Large companies
• Minimum share capital >> €60,000

Limited liability company

• Small and medium businesses
• Minimum share capital >> €3,000

Tax Advantages

Corporate tax – The corporate tax rate is 10%.

IGI

Andorran VAT – The standard rate for general indirect tax is 4,5%.
Income tax – The personal income tax rate is 10%.

IRNR

Withholding non-resident tax – The maximum tax rate for non-residents is 10%.

Tax deductions & savings

Allows lower settlement tax payables.

Double taxation

Avoiding double taxation with the countries which there is a double tax treaty.

Special low-tax regimes

Special low-tax regimes for holdings and digital assets.

Dividends

Dividends of Andorran companies are exempt from taxation in the country.

If you are a foreign investor interested in relocating your business to Andorra, establish an Andorran company as an investment vehicle, open branches, permanent establishments, acquire shares, make capital injections or simply looking to explore real estate or financial opportunities in the national territory of Andorra, it is essential that you are familiar with this formal foreign investment request process, authorized by the Government of Andorra.

WHO SHOULD MANAGE THE FOREIGN INVESTMENT PROCESS IN ANDORRA?

  • Foreign individuals without residence in the Principality of Andorra.
  • Legal entities of foreign origin.
  • Andorran companies whose foreign ownership represents 50% or more of their share capital.

HOW TO PROCESS YOUR REQUEST

1.- Preliminary aspects

Prepare the documentation (Reservation of the company name, digital certificate and legalized & apostilled documentation).

2.- Prior appointment

Prior appointment and submission of the form and required documentation.

3.- Signature of non-resident partners

contribution of the request of the rest of the future non-resident partners with a participation of more than 10%, duly signed.

4.- Follow-up

Follow-up of the evaluation, subsequent claims and final resolution.

5.- Formalization

Formalization of the transaction in notary deed.

NEW TAX ON FOREIGN REAL ESTATE INVESTMENTS IN ANDORRA

On February 28th, 2024, the Andorran Parliament approved a new tax on the acquisition of properties, real estate developments, and other property projects located in the Principality of Andorra that are financed directly or indirectly with foreign funds.

Accordingly, it is a progressive real estate tax that it rates depends on the number of properties acquired by the foreign investor, reaching a maximum rate of 10% on the value of the real estate investment made. It is important to note that this tax does not affect other forms of foreign investment unrelated to real estate located in Andorra.

Therefore, if you are considering investing in properties or real estate businesses in Andorra, it is essential to consider this new tax and its economic implications.

Procedures to create a company in Andorra

1

Request of the NIA

Number of administrative identification

2

Reservation of Social Name

Company name and its corporate purpose.

3

Foreign Investment authorization

Request for investment in the country.

4

Opening a bank account

Opening of a bank account with the deposit of the social capital.

5

Public deed and signature

Signature in front of a notary of the articles of incorporation

6

Registration in the Companies Register

Registration in the Commercial Registry of Andorra.

7

AFA deposit

Processing and mandatory deposit to obtain residence permit on your own account.

8

NRT and Commercial & Industrial Registry.

Necessary procedures to start the commercial activity.

9

Registration & affiliation to CASS

[bold_timeline_item_button title=”Expand” style=”” shape=”” color=”” size=”inline” url=”#” el_class=”bold_timeline_group_button”]

DO YOU WANT TO GET MORE INFORMATION?

Contact us now! Our team of expert advisors is ready to help you every step of your process.
Call us
+376 80 41 11
Monday to Thursday from 9 a.m. to 1:30 p.m. and from 3 p.m. to 7 p.m.
Send us an email
central@ocps.ad
Friday from 8 a.m. to 2 p.m.
Send us a Whatsapp
+376 80 41 11
Intensive schedule in August from 8 a.m. to 2 p.m.

    I have read and accept the Data Protection Information clause

    ocps logotip
    Connect with us
    +376 80 41 11
    AndorraDataProtect

    ©2024 OCPS. All rights reserved | Legal Notice and Privacy Policy