If you’re looking for a European base with an investor-friendly tax system, Andorra deserves a place on your list. With corporate and personal income tax rates of just 10%, as well as other tax benefits for residents, Andorra can be an attractive option.

Advantages of an offshore company in Andorra

Andorra, although small, offers many tax advantages. Andorran companies allow you to take advantage of the country’s advantageous tax system with a tax rate of only 10%.

Non-resident companies

The legal changes now allow non-residents to establish, own or hold part of a company based in Andorra with the same rights as a resident.

Taxes in Andorra

Andorra enjoys one of the lowest tax rates in Europe with a corporate tax rate of 10%. This rate can be reduced to 2% for business income from abroad.

Capital Gains Tax

The standard capital gains tax rate in Andorra is also 10%. Exemptions are available for foreign real estate that has been held for more than a decade.

Value Added Tax (VAT)

VAT in Andorra (IGI) is the lowest in Europe at only 4.5%. Businesses also have to pay a local community tax called “Comú”.

Tax Obligations

Andorran taxpayers must file tax returns and register for social security if their company employs workers.

Although Andorra offers an attractive tax system with an income tax rate of 10%, it is essential to understand the tax obligations in your home country.

Everything you need to know about taxation in Andorra

Active Residence vs. Passive Residence

Many investors open companies in Andorra to take advantage of their residency program. There are two main ways of residency: active and passive.

• Active residency is the best option for founders and shareholders of a company in Andorra. It is granted either for the creation or acquisition of a company from a company in Andorra or for participation in a local company. To obtain a work permit, you must set up your own business with a minimum share capital of €3000, or acquire more than 20% of a local company, for which you must at least sit on the board of directors. As a director of your own company, you will obtain active residence after the incorporation and activation of your Andorran company, all the procedures of which must be administered physically and locally by the competent authorities and drawn up exclusively in Catalan.
• Passive residency requires an investment of at least €600,000 with a deposit requirement of €50,000 for the main applicant.

Everything you need to know about residency in Andorra

How to set up an Andorran company?

The process of setting up a company in Andorra includes opening a bank account, depositing the share capital, and signing the membership certificate at a notary’s office. The process can take up to three months due to government approval.

FAQs about Andorran companies

• Can I open a company in Andorra? Yes, foreign residents and non-residents can do so.
• Is Andorra in the EU? No, but it uses the euro as its currency.
• Is Andorra a tax haven? Officially not, but it has the lowest tax rates in Europe.
• Does Andorra have tax treaties? Yes, with several countries, including France, Spain and Luxembourg.
• Does Andorra tax foreign income? Yes, but at low rates.

Does Andorra have tax treaties?

Andorra currently has tax treaties with the following countries:

• Cyprus
• Czech Republic
• France
• Hungary
• Iceland
• Liechtenstein
• Luxembourg
• Malta
• Monaco
• Portugal
• San Marino
• Spain
• United Arab Emirates

At the time of writing, the last treaty ratified was that of the Czech Republic, in January 2023. Other countries awaiting ratification are Croatia, Lithuania and Germany.

Conclusion on Andorran companies

Andorra offers an attractive tax system and considerable freedom of movement. It is essential to consider certain factors and look for alternatives to avoid double taxation. Get professional tax advice before you get started.

Clickand can help you create an action plan to find the best organization to set up your offshore company in Andorra, minimizing taxes and maximizing profits.

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Are you thinking of moving to Andorra to work or invest in a local company? Opening an Andorran bank account is a crucial step to facilitate your financial transactions. Explore with us the simple and effective steps to open your bank account in Andorra.

Who is eligible to open a bank account in Andorra?

Whether you reside in Andorra or not, any natural person has the opportunity to open a bank account in the country. This opportunity also extends to companies established in the principality. Depending on your profile and needs, you will be able to choose the type of Andorran bank account that best suits your needs.

Documents required to set up your bank account

For French nationals, each Andorran bank requires certain documents to open an account. The main documents to be provided are the following:

• Proof of identity: A valid passport from your home country.
• Proof of source of funds: Invoices, payslips, or account statements to prove the origin of your funds.
• Tax and bank documents: Tax and banking documents from your home country.

For business accounts, the company’s incorporation documents and tax identification number are also required, as well as powers of attorney for the persons associated with the account.

Do I have to be there to open an Andorran bank account?

You can start the process of opening your bank account in Andorra online, no matter where you are. However, keep in mind that your physical presence is required to complete the procedure. A trip to the site will therefore be necessary to activate your account as a French national.

The advantages of Andorran banks

Andorra, independent of the European Union, offers unique financial advantages. Andorran banks, not being subject to the restrictive directives of the European Central Bank, offer more attractive returns on your savings. In addition, competitive interest rates and investment opportunities abound.

Tax advantages are also noteworthy, with lower taxes than in many countries of the European Community. Financial security is ensured by compliance with the rules of the Andorran Financial Authority, guaranteeing the solvency of the financial system.

How to choose the ideal bank for your account in Andorra?

The choice of bank depends on your profile and your financial goals. Whether you are an investor or an individual, looking for wealth management or credit solutions, some Andorran banks can meet your needs better than others. Take the time to learn about the different banking structures before making an informed choice.

If you prefer, you can call on Clickand to help you set up a bank account in Andorra. We will guide you in identifying the bank that best suits your needs, offering you personalized support throughout the process.

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By following these simple and adapted steps, you will be able to open your bank account in Andorra with complete peace of mind, taking full advantage of the tax and financial advantages offered by this unique destination in the Pyrenees.

The Principality of Andorra is an attractive destination for wealth management, offering advantageous taxation, a pleasant living environment and proximity to France and Spain. To take full advantage of these benefits, it is crucial to surround yourself with qualified professionals. Clickand, a wealth management consulting firm, has established itself as a key player in the Principality.

Heritage in Andorra

Patrimony, which includes all of a person’s assets and rights, can be movable (bank accounts, securities, etc.) or immovable (real estate, etc.). Wealth management aims to preserve and enhance these assets.

In Andorra, wealth taxation stands out for its advantageous nature. The wealth tax (ISF) was abolished in 2015, and income from assets is subject to preferential taxation. For example, dividends are taxed at 10%, compared to 30% in France.

Regulations in Andorra

Wealth management in Andorra is governed by various regulations, including the creation of asset management companies, the management of investment funds and inheritance taxation.

The creation of a property company in Andorra requires compliance with the following conditions:

• The registered office must be established in Andorra.
• Shareholders must be natural or legal persons domiciled or having their registered office in Andorra.

The management of investment funds in Andorra is subject to strict regulations, requiring the approval of the Financial Market Supervisory Commission (CMF).

Important questions are often highlighted, with an important comparison according to your country of origin, we are here to answer all your questions. For example, on the issue of taxes:

What are the property taxes in Andorra?

In contrast to neighboring countries such as Spain or France, Andorra is distinguished by the absence of property taxes. In France, for instance, property tax applies to income from movable assets and real estate assets exceeding 1.3 million euros.

Regarding real estate transactions, Andorra applies a property transfer tax (ITP) rate of 4 to 4.5%, depending on whether it is an individual or a legal entity. In comparison, in France, this rate varies between 19 and 25%. This difference in rates between Andorra and France can be significant for those considering real estate transactions and is one of the attractive aspects of the Andorran tax framework.

Clickand’s Tax Experts

Our wealth management consultancy firm specialises in the Principality of Andorra and has a team of experts in taxation, law and finance. Our professionals have in-depth knowledge of Andorran regulations and are able to offer customized solutions to each client.

Some of our strengths:

• Recognised expertise: We have been a recognised wealth management consultancy firm in the Principality of Andorra since 2007. We have many years of experience in supporting individual and professional investors. We currently manage more than 3500 clients.
• A Personalized Approach: We are committed to providing you with a personalized approach that meets your specific needs. We take the time to understand your financial situation and goals to offer you tailored solutions.
• Full transparency: We are committed to providing you with clear and transparent information about our services and products. We explain the pros and cons of each solution in detail so that you can make an informed decision.

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If you aspire to exploit the advantages of the Principality of Andorra for the management of your assets, Clickand is the ideal partner. Our team will assist you in designing a wealth strategy that meets your needs and objectives.

Companies, whether large or small, face tax requirements in their respective countries. These taxes can sometimes be very heavy, amounting to thousands of euros. However, the Principality of Andorra offers attractive tax advantages, making it a popular destination for company formation. It is essential to follow the legal recommendations to choose the appropriate type of company when setting up a company in Andorra.

Types of Company in Andorra

The legal forms of companies in Andorra

Whether you are an individual or a company wishing to set up in Andorra, the choice of the type of company is crucial. In Andorra, there are three main types of companies:

1. The Limited Company (SL)
2. The public limited company (SA)
3. The Collective Company

These distinctions are clearly established by the Andorran jurisdiction, and each entrepreneur must comply with the legal requirements to choose the type of company best suited to their needs.

1. The Limited Company (SL)

The Limited Company (SL) in Andorra, similar to the Limited Liability Company (SARL) in France, is a commercial company with mixed characteristics. The financial shares of the capital are not directly accessible; Shareholders’ consent is required. Management can be carried out by several partners, but single-member management (SLU) is also possible. The creation of an SL involves tax costs of around 6000 euros and annual taxes of around 850 euros.

2. The Public Limited Company (SA)

The Société Anonyme (SA) is an offshore company in Andorra, aiming to bring together large companies and many shareholders. Only one person may be appointed to manage this company (SAU). The creation of a public limited company requires a minimum capital of 60,000 euros, with an annual payment of 1016.67 euros to the State.

3. The Collective Society

Unlike the companies mentioned above, a collective company in Andorra is managed by the family. It involves the participation of corporate assets, shareholders and employees. The company’s capital is regularly used in the presence of the various partners.

Creation of your company in Andorra

Primordial Conditions for Creation

1. Submit a completed application for a reservation of legal name.
2. Apply for an investment permit for foreigners from the competent authorities.
3. Register in a commercial register to obtain a tax register number.

For quick creation, it is recommended to use a competent service. Clickand’s tax and accounting experts offer expertise in administration, particularly for the installation of expatriates and the creation of their residence and company.

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Administration of the Company

The management of a company in Andorra can be entrusted to a person of trust or to a board of directors. The provision of certain administrative documents, such as the copy of the status of the directors, the criminal record, the copy of the passport of the legal representatives, and the Andorran investment permit, is necessary depending on the type of company chosen.

Taking these administrative documents into account, you will be able to set up a competent company in Andorra, benefiting from the tax and economic advantages offered by the Principality.

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Are you considering expatriation to the Principality of Andorra to create a company in Andorra? If this is the case, the Clickand business firm is ready to offer you personalized support to bring your ambitions to life. Beyond information on the conditions of establishment, administrative and tax rules, we put at your disposal our collaborators specialized in tax optimization. And our assistance doesn’t stop there, we also support you with your installation.

Expertise for Company Creation in Andorra

As experts in company formation in Andorra, we focus on expats and local residents. Clickand supports you at every stage of your project, providing you with solid expertise. Our assistance covers several essential aspects:

• Presentation of the challenges and opportunities offered by the Principality
• Clear information on the legal processes leading to company registration
• Administrative assistance to help you comply with laws and regulations in force

Our perfect knowledge of the country and our expertise in taxation give you a considerable advantage in creating a business in Andorra.

The Phases of Support to create your company in Andorra

All project leaders, whatever their activity, can count on our business firm to create their company in Andorra in optimal conditions. We offer complete support through different phases.

For companies setting up in Andorra there are inter-country tax conventions to put in place: discover the process.

Pre-creation advice – Consultation

Our experts assist you in choosing the legal structure, the social status of the main manager, and the company’s tax regime . An accountant can also provide you with an overall vision of the project.

Assistance during the creation phase

We offer you an individualized range of services, including the drafting of statutes and the registration of legal creation formalities.

Support after creation

After the creation of your company in Andorra, we are at your side for the accounting organization, the use of management tools, as well as for social and tax obligations.

Clickand offers individualized service packs, including an accountant specialized in French, Spanish and Andorran laws and administration, a model integrating logistics, transport, accommodation, and a personal assistant to optimize your time.

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The Keys to Success

Support is a crucial step in creating your business in Andorra. It allows you to master the legal, tax, accounting and financial aspects specific to the Principality. The help provided by Clickand strengthens the sustainability of your projects by making them more solid and coherent.

The Advantages of the Principality

By setting up your business in Andorra with the help of our experts, you take full advantage of the advantages of the Principality, such as a low corporate tax rate (maximum 10%) and affordable social and labor costs.

Join entrepreneurs from around the world, Andorra is waiting for you!

Clickand is ready to become your preferred partner for the creation of your business in Andorra. Contact our office or come meet us on site to study your project in detail and determine the services best suited to your approach.

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Create a company in Andorra

When considering starting a business abroad, Andorra stands out as an attractive choice. In addition to its advantageous tax framework, the country offers an exceptional quality of life, political stability and a quality of medical care exemplary. The Andorran economy is constantly growing, making it an ideal place to invest.

For those looking to emigrate to Andorra, Clickand positions itself as the ideal partner. We not only help you navigate the twists and turns of bureaucracy, but we are also here to guide you through the cultural and social aspects of the Principality. We understand that starting a business in a new country can be intimidating, which is why we do everything we can to make the process as smooth as possible.

Additionally, our team is strongly committed to promoting gender equality and diversity, which is reflected in our hiring policy and working practices. Our goal is to foster an inclusive work environment where everyone, regardless of their origin, can thrive.

We also believe in sustainability and corporate social responsibility. In everything we do, we seek to minimize our impact on the environment and contribute positively to society. This translates into ethical business practices and efforts to support important causes.

Ultimately, choosing Clickand for the creation of your business in Andorra is much more than just a business partnership. This is an opportunity to build something significant in a favorable environment, benefiting from the expertise of our multidisciplinary team. Join us today to make your dream of entrepreneurship in Andorra a reality. Our dedicated team is ready to support you every step of your entrepreneurial journey.