Andorra as a business destination
Andorra offers a privileged environment for the creation and development of business projects, thanks to its institutional stability, competitive taxation, and international projection. Below, we show you the main reasons to establish your company here.
Talent and entrepreneurial ecosystem
Andorra stands out as a country with a notable concentration of entrepreneurs, innovative professionals, and knowledge promoters per square meter, thus becoming a networking hub in continuous development.
Strategic location
In Andorra, you will obtain the peace, security, and well-being you have always desired, with the advantage of proximity to major cities in Spain and France.
International agreements
Andorra has agreed on various international conventions with other countries, including, among others, double taxation avoidance and tax evasion prevention agreements, social security conventions, as well as customs pacts and franchises with the European Union.
Efficient labor environment
The Andorran labor framework and the contribution system offer competitive conditions for the development of business projects, while maintaining a high level of social protection and quality of public services.
Attractive tax framework
Highly competitive taxation, in both direct and indirect taxes.
Connectivity and digitalization
A fiber optic network and telephone coverage have been established throughout the country.
Requirements for setting up a company in Andorra
Foreign investment
Administrative application and authorization.
Andorra has implemented measures to prevent practices such as tax evasion and money laundering, aligning itself with international standards.
Administrative residence permit
Obtaining a permit according to the appropriate typology.
It is mandatory to have a physical address in Andorra and demonstrate real economic activity, avoiding the creation of shell companies.
Types of companies
Public Limited Company – S.A.
It is more suitable for larger-scale companies and those with a higher number of shareholders.
- Large corporations
- Minimum share capital >> €60,000
Limited Liability Company – S.L.
The most common form for setting up a company in Andorra.
- Small and medium-sized enterprises
- Minimum share capital >> €3,000
Taxation in Andorra
Corporate Income Tax (IS)
General rate of 10%. Andorra has one of the most competitive corporate tax rates in Europe, while maintaining an internationally approved tax framework.
General Indirect Tax (IGI)
General rate of 4.5%. The IGI is one of the lowest indirect tax rates on the continent, favoring economic activity and consumption.
Personal Income Tax (IRPF)
Maximum rate of 10%. A progressive and competitive system that combines legal certainty with moderate taxation.
Non-Resident Income Tax (IRNR)
Maximum general rate of 10%. A tax framework adapted to international economic relations and business mobility.
Double taxation avoidance agreements
Andorra has an extensive network of international agreements that allow for the reduction or elimination of double taxation situations in certain international operations.
Incentives and specific regimes
Andorran regulations provide for various mechanisms, deductions, and special regimes that can favor certain business structures and investments, always depending on the circumstances of each project.
Dividends
Exemption of dividends received from Andorran companies.
Foreign Investment Application
If you want to set up a company in Andorra, acquire shares in an Andorran company, open a branch, or make certain investments in the Principality, you may need to process a foreign investment authorization. Below we explain the main cases in which this procedure is mandatory.
- Natural persons not resident in the Principality of Andorra, except if they have Andorran nationality.
- Natural persons resident in Andorra with less than 3 years of effective and permanent residence within the previous 10 years, when making a real estate investment.
- Legal entities of foreign nationality, including those that invest through a branch or a permanent establishment in the Principality of Andorra.
HOW TO PROCESS YOUR APPLICATION?
TAX ON FOREIGN REAL ESTATE INVESTMENT
Foreign real estate investment in Andorra is subject to specific taxation with rates of 6% or 10%, depending on the characteristics of the operation.
Procedures for setting up a company in Andorra
Our Simplified Process
We accompany you in every phase, ensuring a clear, agile process without surprises. Navigate through our method.
