Andorra is a promising jurisdiction with a truly attractive taxation system, the basic tax rate for companies is 10%, thus giving the opportunity to optimize your business structure.
There are two types of companies in Andorra:
- Sociedad Anónima; S.A. (corporation) – the amount of the cash contribution is from 60 thousand euros.
- Sociedad de Responsibilidad Limitada; S.L (общество с ограниченной ответственностью) – €3000.
The entire company registration process may take around 5 months. To begin, it is necessary to obtain permission to open a company. It is issued only for those types of business that the government considers appropriate and capable of making a significant contribution to the country’s economy.
Business in Andorra is often quite specific, however, as in any country. We will try to provide you correct guidance, in order to avoid mistakes at the initial stage of organizing a business, based on our many years of experience.
Your company must have a unique legal address, which is registered in a rented (purchased) office space.
The basic tax rate for companies is 10%.
Dividend tax for Andorran resident shareholder is 0%.
Besides, opening a company is one of the ways to obtain a residence permit in Andorra.
Procedure for registering a company in Andorra:
- Obtaining an identification number
- Obtaining an electronic certificate
- Company name registration
- Obtaining a certificate of no criminal record, from the place of residence (a copy of the international passport with an apostille)
- Application for permission to open a company
- Opening a bank account
- Signing and notarization of all registration documents
- Activation of company activities in the municipality (Comú)
- Registration of taxpayer identification number (Número de Registre Tributari)
Company maintenance costs in Andorra:
- office space rental
- accounting
- annual council tax
- electricity/communications
- insurance — 20% of the salary of one employee
Our company provides all types of company registration services, including assistance in finding suitable premises, concluding contracts, and searching for personnel in recruiting agencies and at the labor market in Andorra.
Comparative table on taxation in Andorra.
%
| Corporate income taxes | Personal income taxes | |
| Andorra | 10% | 10% |
| Spain | 25% | 19%–45% |
| France | 31% | 11%–45% |
| Portugal | 21% | 25%–28% |
| Ireland | 33% | 20% |
| Luxembourg | 21 | 39% |
| Швейцария | 8.5% | 11.5% |
Tax rates in Andorra
(Dividends of Andorran companies are always 0%)
| Standard and maximum bet | Minimum bet | |
| VAT | 4.5% | 0% |
| Corporate income tax | 10% | 2% |
| Income tax from non-residents | 10% | 10% |
| Personal income tax | 10% | 0% |
| Purchase of real estate for tax residents of more than 3 years | 4% | – |
| Sale of real estate, with a price increase | Max. 15% Standard. – 0% | 0% |
Comparative table of characteristics of countries with low taxation in Andorra.
0%
| Andorra | Cyprus | Latvia | |
| Corporate tax | 10% | 12.5% | 15% |
| Dividends | 0% | 0% | 10% |
| Personal tax residence | Yes | Yes | Yes |
| Minimum stay | 90 | 183 | 183 |
| Investment (minimum) | €1,000,000 — passive investment €50,000 — active investment | 300.000 | 250.000 +tax |
| Gift tax | 20% | 25% | |
| VAT | 4.5% | 19% | 21% |
Tax optimization
Our company will help you go through all the necessary formalities for registering with the tax office and choosing a qualified accounting service company.
Residence permit with the right to work in your own company
A residence permit with the right to work in your own company, or an active residence, is suitable for those who really plan to live here most of the time
