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 (limited liability company) – 3 thousand euros.
The whole process of registering a company can take about 3 months, but it is quite transparent, and a residence permit with the right to work in your own company is issued almost without fail. All the rest will depend only on you. 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. Suitable for those who cannot, and simply do not want to invest a large amount of money.
The procedure for registering a company in Andorra:
- 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 certification of all registration documents
- Activation of company activities in the municipality (Comú)
- Registration of taxpayer identification number (Número de Registre Tributari)
Costs of maintaining your company 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 about in Andorra..
| Taxes on a set of companies | Personal income taxes. | |
| Andorra | 10% | 10% |
| Spain | 25% | 19%-45 % |
| France | 31% | 11% -45% |
| Portugal | 21% | 25%-28% |
| Ireland | 33% | 20 % |
| Luxembourg | 21% | 39 % |
| Switzerland | 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 лиц | 10% | 0% |
| Buying a property | 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.
| 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) |
400.000 passive 18.000 active |
500.000 |
250.000 +tax |
| gift tax | 0% | 20% | 25% |
| VAT | 4.5% | 19% | 21% |
Tax optimization
Our company closely cooperates with Andorran leading specialists in the field of international tax planning, members of the AATF (Association of Tax and Financial Assessors of Andorra), as well as with the Andorran Banks Association (ABA), which will help us to comprehensively approach the solution of a particular task set before us and develop the best solution for you and your business.
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
