Where to Invest in Andorra?

Investing in Andorra is attracting an increasing number of international entrepreneurs and investors. This principality nestled in the Pyrenees offers an advantageous tax environment and a stable economic framework, ideal for business development. Whether you wish to invest in Andorra’s real estate sector, create your company, or diversify your assets, discover the numerous advantages this rapidly expanding territory has to offer.

Key Advantages of Investing in Andorra

Located in the heart of the Pyrenees, between France and Spain, the Principality of Andorra has become a privileged destination for international investors. With 86,000 inhabitants spread across 468 km², this territory combines political stability, economic growth, and an attractive tax framework, offering unique opportunities for entrepreneurs.

A Dynamic and Growing Economy

The Andorran economy shows remarkable health, as demonstrated by its exceptional growth of 8.8% in 2022 according to World Bank data. The tourism sector, a pillar of the local economy, attracts more than 9.25 million annual visitors, generating estimated revenues of 2.5 billion euros in 2023.

A Particularly Attractive Tax Regime

Andorra stands out for its advantageous taxation that appeals to investors:

• GST (VAT) at 4.5% on most goods and services
• Tax burden limited to less than 25% of GDP
• Corporate tax capped at 10%
• No tax on dividends
• No wealth tax
• Inheritance tax exemption for residents

Promising Investment Sectors

Real Estate: A Dynamic Market

The Andorran real estate sector presents unique characteristics:

• Reduced notary fees
• No property tax
• Numerous development opportunities
• Constantly evolving market

Growing Innovative Sectors

Andorra actively encourages investment in:

• Digital economy
• Renewable energy
• Sustainable tourism
• Healthcare services
• Financial technologies

Quality of Life and Modern Infrastructure

The principality offers an exceptional living environment characterized by:

• One of the highest standards of living in Europe
• An efficient healthcare system
• Free, high-quality education through high school
• A secure environment with an almost non-existent crime rate

Practical Aspects of Investment

Favorable Legal Framework

Foreign investors can:

• Own 100% of their company’s capital
• Benefit from a stable regulatory framework
• Access simplified administrative processes

International Relations

Although not a member of the European Union, Andorra benefits from:

• Numerous agreements with the EU
• The Euro as official currency
• Simplified cryptocurrency regulations
• The possibility to invest in neighboring countries through an Andorran company

Conclusion

Andorra establishes itself as a privileged destination for investors, combining tax advantages, political stability, and exceptional quality of life. The principality offers a conducive environment for business development, supported by a dynamic economy and diversified sectors of activity.

To succeed with your investment in Andorra, it is recommended to work with experienced professionals who master the specificities of the local market and can guide investors through their administrative and strategic procedures.