Create a Company in Andorra
Triple A offers specialized consulting and administrative services for your decision to create a company in Andorra. First of all, we will help you choose the type of company or business that best suits your professional and personal needs.
Additionally, we will handle all the procedures with the competent authorities. In this way, we will speed up the opening of your company or business in the Principality and, consequently, we will minimize your travel so that you can focus entirely on your project.
Why create a company in Andorra?
High standard of living and economic stability
Andorra has one of the highest per capita incomes in the world. In fact, in 2024, the GDP amounted to 3,736.44 million euros, meaning the GDP per capita stood at 42,900 euros.
On the other hand, the GDP per capita in Purchasing Power Parity (the data that allows for international comparisons) stood at 67,189 dollars. This weighting placed Andorra in an excellent position, with figures similar to Germany, Saudi Arabia, and Sweden. To put it into context, France obtained a GDP per capita in PPP of 62,557 dollars and Spain 57,965 dollars.
Low tax burden
Corporate tax: This tax is very attractive for foreign investors, since it is only 10%, a percentage well below that of most European countries. Moreover, some companies can benefit from a strategic reduction depending on their activity.
Personal Income Tax (IRPF): It is similar to that of neighboring countries, but with a much lower tax burden. The tax rate is 10%. Likewise, the first 24,000 euros of employment income and the first 3,000 euros of movable capital income are exempt, which significantly reduces the effective rate.
IGI (Indirect General Tax): The IGI is the tax equivalent to VAT. The general rate is only 4.5%. There is also a super-reduced rate of 0% (healthcare, education, leases), a reduced rate of 1% (food), a special rate of 2.5%, and an increased rate of 9.5% (banking and financial services).
Finally, it should be noted that in Andorra there is currently no Wealth Tax, nor Inheritance and Gift Tax.
Very competitive labor costs
One of the great advantages of setting up a company in Andorra is the cost of hiring staff. Indeed, the employer enjoys low social security contributions compared to other countries, which facilitates job creation and reduces fixed costs. Specifically, the Social Security (CASS) contributions for Andorran companies are 15.5%, while in Spain and France they exceed 30%.
Other outstanding advantages
In short, we highlight a series of complementary benefits offered by the Andorran environment:
- ✓ One of the highest qualities of life in the world.
- ✓ High security and one of the lowest crime rates globally.
- ✓ Less than three hours by car from strategic cities like Barcelona or Toulouse.
- ✓ Deficit and debt-to-GDP ratio in the most moderate range of OECD countries.
- ✓ High solvency and stability of the Andorran banking system.
- ✓ Top-tier international healthcare system.
- ✓ Three free and public educational systems (Andorran, Spanish, and French).
- ✓ A great cultural diversity and a cosmopolitan environment.
Do you want to set up your company in Andorra?
Our team handles all the procedures so you can start your business quickly and with legal certainty. Contact us!