Investing in Andorra

Why invest in Andorra

Advantages of investing in the Principality of Andorra

Andorra, located in the Pyrenees, offers significant opportunities for investors due to its economic openness and liberalization of investments. With a sound international financial system and an advantageous tax model, it has become an attractive destination for doing business. Moreover, its strategic location between Spain and France provides easy access from cities such as Barcelona, Toulouse, Lleida and Perpignan.

A major airport facility has been in operation since 2021 for commercial flights, including flights to Madrid offered by AIRNOSTRUM.

Despite being a small country, Andorra has a population of approximately 82,000 inhabitants and receives around 8 million visitors each year, demonstrating its appeal as a tourist and business destination. In 2022, its GDP stood at 3.188 billion euros, with a GDP per capita of 39,068 euros, placing it in a prominent position internationally.

Moreover, the linguistic diversity, which includes Catalan, Spanish, French, English and Portuguese, facilitates communication with people of different nationalities.

Investing in Andorra offers numerous advantages thanks to its economic openness, advantageous tax model and sound financial system. Don’t hesitate to explore the opportunities that this country has to offer and count on our support as advisors specialized in the Andorran business environment.

Andorra's opening to investments

Andorra has taken important steps towards the liberalization of investments with Law 10/2012 on foreign investment.

It is now possible to create companies with 100% foreign capital, which attracts international investors. Furthermore, Andorra has aligned itself with other European countries by signing more than 20 agreements on the exchange of tax information, leading to its removal from the OECD blacklist. It has also established double taxation treaties with several countries, ensuring equitable tax treatment.

These developments demonstrate Andorra’s commitment to transparency and international tax cooperation, making it an attractive and reliable destination for investors.

If you are looking for investment opportunities, addwill Andorra can help you make the most of the benefits of this advantageous business environment.

Why choose Andorra as an investment destination?

Andorra is an attractive destination for investors, with a business-friendly environment and an enviable quality of life.

Our consultancy in Andorra is here to help you take advantage of all these benefits and make a success of your investment projects:

Incorporation of companies: Since 2012, it has been possible to establish companies with entirely foreign capital, which facilitates international investment.
End of its status as a tax haven: Andorra is no longer considered a tax haven. It has aligned its tax system with that of other European countries, but with a lower tax burden, which increases its competitiveness in products and services.
Residency for investors: Foreign investors who own a stake of more than 34% can apply for residency in Andorra, which provides additional benefits.
Deposit: Make a deposit of €50,000 with the Andorran Financial Authority, which will be returned when you cease to reside in the country.
High standard of living: Andorra has one of the highest per capita incomes in the world, providing opportunities for economic prosperity.
Financial stability: The country has a sound and recognized international financial system, which guarantees security and confidence in economic transactions.
Safety and quality of life: Andorra has one of the lowest crime rates in the world, offering a safe environment in which to live and do business. In addition, its healthcare system is ranked among the best in the world.
Multilingual education:In Andorra, there are three free education systems in three different languages (Catalan, Spanish and French), providing educational options and opportunities for all needs. The availability of reputable private educational institutions, such as the British School of Andorra, which offer high quality education and attract international families, creates an environment conducive to investment and appeals to people who value an excellent education for their children.

The tax system in Andorra: an advantage for investors

At addwill Andorra, we provide you with specialized services to optimize your tax burden. Discover how to make the most of the Andorran tax system and benefit from its advantages.

Corporate income tax: Take advantage of the attractive corporate tax in Andorra, with a rate of 10%, lower than in other European countries. Boost your company’s growth and maximize your profits.

Personal income tax: Reduce your tax burden and enjoy personal benefits with the income tax system in Andorra. With a tax rate of 10% and exemptions for the first 24,000 euros of earned income. Dividends generated by the company are exempt from income tax (IRPF).

IGI (General Indirect Tax), equivalent to VAT: Take advantage of the differentiated IGI tax rates in Andorra, from the general rate of 4.5% to reduced rates for essential services such as health, education and housing rental. Increase the competitiveness of your business.

Other taxes: In Andorra there is no wealth, inheritance or gift tax.

Our team of experts in tax consultancy in Andorra is committed to helping you take advantage of all the opportunities offered by the country’s tax system. Contact us and find out how we can tailor tax solutions to your business needs and goals. Optimize your taxes in Andorra and boost your financial success with our specialized advice.

Promotion of foreign investment in Andorra:

At addwill we offer you a comprehensive advisory service to make the most of foreign investment opportunities in the country. With the Law on Foreign Investment in force since 2012, Andorra has opened its economy to international investments and companies, eliminating sectoral restrictions and providing an environment that is conducive to new businesses.

What do we offer?
Key information: We can provide you with relevant details about the Law on Foreign Investment and the advantages it offers for foreign investors in Andorra.

Tax exemptions: We can explain the tax advantages on offer, including a Corporate Tax rate of 10% and a Personal Income Tax with a reduced tax burden.

Restrictions and protection: We provide advice on foreign investment restrictions in specific cases and offer detailed information on the prevention of money laundering, terrorist financing and data protection regulations.

Comprehensive support: Our team of experts will guide you through the entire process, from the planning and evaluation of opportunities to the implementation and management of your investment.

We provide you with the knowledge and experience necessary to take advantage of the benefits of foreign investment in the country. Contact us for a personalized and reliable advice. Together, we will make your investment in Andorra a success.

Hiring staff in Andorra: Benefits and salary structure

Recruiting personnel implies a Social Security cost, part of which is paid by the employee and the other part by the company.

One of the benefits of establishing a company in the Principality is that the employer’s social security contribution percentage is much lower than in other countries. This aspect is detailed below:

EMPLOYEE SHARE			BUSINESS PART			TOTAL
General	Retirement	Total employee share	General	Retirement	Total Business Share
3%	3,50%	6,50%	7%	8,50%	15,50%	22%

In our office in Andorra, we can offer you information and advice on hiring personnel in the country.

Self-employed social security contribution
The monthly self-employed social security contribution is €502.63, with the contribution thresholds varying between €502 and €691.11depending on income.

Our team of experts will guide you through the recruitment process, ensuring compliance with labour regulations and maximizing tax and labour benefits in Andorra.

Contact us and find out how we can help you with recruitment in this advantageous business environment.

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