Why to invest in Andorra

40 years of experience guarantee our professional career in Andorra

Why to invest in Andorra

The case of the Principality of Andorra is that of a sovereign country with a collaborative administration which offers a favorable environment to investment freedom, with a deployment of harmonized standards that provide legal certainty to the holders of these investments.


Advantages of investing in Andorra


1. Attractive tax framework in Andorra


Andorra has an internationally comparable tax framework and at the same time very attractive, with a maximum tax rate of 10% direct taxes (Corporate Tax, Personal Income Tax and Non Resident Income Tax) and a general tax rate of 4,5% for indirect taxes (Value Added Tax).


The non-existence of taxes on wealth or on inheritance and donations, the signature of Double taxation agreements and the fact of not making withholdings on dividends distributed by Andorran companies, turn Andorra into a top-notch destination both for individuals and companies.


Currently Andorra has ten double taxation agreements signed (with Spain, France, Portugal, Luxemburg, Liechtenstein, United Arad Emirates, Cyprus, San Marino and Hungary) and it is in negotiations with Belgium and the Netherlands.


2. Life quality in Andorra


One of the smallest countries in the world, both in size and population. Located between member countries of the EU, of which it is not part.
A parliamentary democracy, with a long period of more than 800 years of peace and political stability, accredit it as an optimal destination for investments.


The GDP per capita is a good indicator of the standard of living. In the case of Andorra, in 2019 was of 36.334 euros, the position number 26 of the 196 countries included in the ranking.


Andorra is a member of the United Nations since 1993 and is currently negotiating an association agreement with the European Union.


3. Andorran society


A cosmopolitan society where more than one hundred different nationalities coexist with a very good social cohesion and without relevant situations of exclusion and isolation. Hardly any crime and exhaustive immigration policies make Andorra a very safe and excellent country to encourage foreign investment. With 78.000 inhabitants, 51,3 % international, its population has one of the highest life expectancies in the world.


4. Education in Andorra


Andorra has three high quality and free educational systems (Andorran, Spanish and French), in addition to three free congregational educational centers and two private English schools.


5. Healthcare in Andorra


Public healthcare for Andorran residents is of an excellent quality and allows, through International agreements, to benefit from healthcare abroad.


6. Connectivity of Andorra


The nearer airports and high speed train stations are in La Seu d’Urgell (27 km), Barcelona (185 km), Toulouse (180 km) and Lleida (150 km).


Regarding La Seu d’Urgell airport, since April 23, 2020 the implementation of an exclusive GPS landing technology allows the airplanes to land and take off in unfavorable visibility conditions. Therefore, regular commercial flights can start operating. In this sense, the Andorran Government is currently in negotiations with several airlines to bring regular flights from European capitals. Private flights are already operating.


7. Natural environment


Almost 300 days of sun per year and with almost no pollution. Only a 3% of the land is urbanized. Multitude and great variety of fauna and flora have earned the recognition of some parts of the country as a biosphere reserve.


8. Energy and Internet.


94,5% of homes have high speed fiber optic internet connection.

The cost of electricity is the second cheapest in Europe.


9. Andorran economy.


Since 2015, Andorran GDP has grown a 7,85%, with an average annual growth in such period of 1,92%, with growth for the year 2019 being of +2,02%.


AAndorra has almost full employment. Government financials are healthy with budget surplus almost every year and with a very moderate public debt level.


With 8 million visitors every year, the main economic sectors are tourism and commerce, real estate, construction and financial services. During the last years, Andorran economy is undergoing a diversification process betting on new sectors.


10. Andorran financial system


Andorra’s official currency is the euro. The supervisory body is the Andorran Financial Authority (AFA) and since the end of the banking secrecy the five national Banks strictly comply with all the International compliance and anti-money laundering regulations, are fully transparent and have a proven solvency.


11. Foreign investment in Andorra


In the year 2012 the foreign investment law was approved. With a prior authorization from the Government companies with a 100% foreign capital can be established.


In the year 2019 investments up to 337 million euros were requested of which 277 million euros were finally approved.


This volume of formalized investment multiplies by more than ten times the values registered in 2013 and represents an increase of 82% compared to 2018.


Websites of interest in Andorra:


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How can we help?

We take care of carrying out all the necessary procedures related to its implementation in Andorra:

Company set up

We carry out all the necessary work for the set-up of your company or business, taking care of all the procedures.

Obtaining active residency

Both for self-employed or for workers on behalf of third parties, we help throughout the process of obtaining your residency permit.

Obtaining passive residency

We take care of carrying out all the necessary procedures to obtain your passive residency. A great opportunity to settle and live in Andorra for all those people that manage their own investments and wealth, are professionals with international exposure or for scientific, cultural and sport reasons.

Advice for obtaining tax residence

We offer global advice in your decision of changing your tax residence to Andorra, accompanying you throughout the process to obtain your residence authorization.

Contacte us

Our clients always find us. We are not only qualified and experienced professionals, we are also close, accessible and sensitive with the desire of giving the best solution. We are honest and upright.

The client, his interests and satisfaction are always at the core of our activity.

If you are thinking of investing in Andorra and have any questions, do not hesitate to contact us and we will advise you on whatever you need.

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