Andorra · International Investment
Foreign
Investment in
Andorra
Andorra Office · Foreign Investment Division
Full support for foreign investors seeking to establish a business presence in Andorra. From corporate structuring and securing authorisations to recurring tax and accounting management. The Andorran system offers genuine tax advantages for those who use it correctly.
10%
Maximum CIT
4.5%
IGI (VAT equiv.)
0%
Wealth tax
Company incorporation
Andorran SL, SA and other corporate forms. Complete management of the incorporation and authorisation process.
Prior investment authorisation
Processing the authorisations required for foreign investment before the Govern d’Andorra.
Tax structuring
CIT at 10%, IGI at 4.5%, no wealth tax. Lawful optimisation of the tax structure.
Integrated ongoing management
Accounting, tax and regulatory compliance from month one. A single point of contact for everything.
Why invest in Andorra
An exceptional
tax framework with
full transparency
Over the past 20 years, Andorra has built one of the most efficient tax systems in Europe, fully integrated into OECD standards. It is not an opaque tax haven, but a modern jurisdiction with low rates, full compliance with CRS and BEPS standards, and double-taxation treaties with leading countries.
For the tax advantages to apply, the company must have real economic substance in the Principality and the investor or manager must be effectively present. We advise on the correct structuring from day one.
Request a diagnosis10%
Maximum Corporate Income Tax
General rate of 10% for all companies. No tax on dividends for Andorran tax residents.
4.5%
IGI, the equivalent of VAT
The Impost General Indirecte has a general rate of 4.5%, compared with 21% in Spain or 20% in France.
0%
No wealth tax
Andorra has no wealth tax. A significant advantage over Spain and France for high-net-worth individuals.
DTT
Network of international treaties
Double-taxation treaties with Spain, France, Portugal, the United Arab Emirates and other countries, with the network expanding.
Types of investment
Three routes to
invest in Andorra
Andorran foreign investment legislation governs the access of non-residents to business activity in the Principality. We advise on the three main routes.
Incorporation of an Andorran company
Creation of a newly incorporated company under Andorran law. The most common route for investors seeking to establish an operational activity in the Principality.
Societat Limitada (SL), minimum capital €3,000
Societat Anònima (SA), minimum capital €60,000
Prior authorisation before the Govern d’Andorra
Tax registration, commercial registry and IGI
Integration into recurring services from month one
Subsidiary or branch of a foreign company
Establishment of an Andorran subsidiary or a branch of an existing foreign company. Suitable for international groups seeking a local presence in Andorra.
Subsidiary: independent legal entity in Andorra
Branch: extension of the parent company
Specific foreign investment authorisation
Coordination with the group structure
Transfer pricing and supporting documentation
Acquisition of an existing company
Purchase of shares or assets in an existing Andorran company. Requires specific due diligence under Andorran law and prior authorisation depending on the percentage acquired.
Legal, tax and accounting due diligence
Prior foreign investment authorisation
Negotiation and drafting of the SPA
Tax structuring of the transaction
Post-acquisition integration
Investment process
From the project
to the operating company
01
Initial diagnosis
Analysis of the project, the investor’s profile and the most appropriate corporate form.
02
Prior authorisation
Processing before the Govern d’Andorra. Typical timeframe: 1-3 months depending on the sector.
03
Incorporation
Notarial deed, registration with the Registre de Comerç i Indústria and definitive NRT.
04
Registrations and licences
Registration with the Departament de Tributs i Fronteres, IGI, CASS (social security) and activity licences.
05
Operations
Integrated accounting, tax and regulatory compliance. Company ready to operate.
Can any foreign investor incorporate a company in Andorra?
+
Yes, subject to certain conditions. Andorran legislation allows foreign investment in most sectors, although some require prior authorisation or have caps on shareholdings. The sectors with the greatest freedom of investment include professional services, technology, trade and financial activities. Some strategic sectors (banking, insurance, telecommunications) are subject to specific regulation. We advise on the viability of each project before starting the process.
How long does it take to incorporate a company in Andorra as a foreigner?
+
The full process usually takes between 2 and 4 months, depending on the sector and on how quickly the prior authorisation is obtained. The longest phase is generally the administrative processing before the Govern d’Andorra. With properly prepared documentation from the outset, the process is smoother and more predictable.
Is it necessary to be an Andorran resident to benefit from the tax advantages?
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It depends on the type of advantage. The benefits of Andorran CIT (10%) apply to the company regardless of the shareholder’s residence. However, the benefits of Andorran personal income tax (10%) and the dividend exemption require the shareholder to be tax resident in Andorra. For international groups, correctly structuring the Andorran company within the wider group across other jurisdictions is essential to optimise overall taxation.
What is the economic substance requirement?
+
For an Andorran company to be recognised as tax resident in Andorra and entitled to its advantages, it must have real economic substance in the Principality: a physical seat, genuine activity, decisions taken in Andorra and, in many cases, local employees or managers. Pure holding structures without real activity are subject to greater international scrutiny under BEPS and CRS standards.
Contact
Looking to invest
in Andorra?
First free consultation with our team in Andorra. We assess your project, the sector of activity and the most efficient structure for your case.
Free investment diagnosis
Reply within 24 hours
Related services
Complete your
project in Andorra
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Transfer of tax residence to the Principality. Personal income tax at 10%, no wealth tax.
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Company Incorporation
All corporate forms in Andorra, Spain and France.
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Tax Advisory
International tax planning and cross-jurisdictional coordination.
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Andorra Office
30 years in Andorra. Odoo and Holded. Foreign Investment Division.
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