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Starting a company in Andorra

crear empresa a Andorra

Triple A offers consulting and management services on the establishment of companies in Andorra. We will help you choose the type of company/business that suits you, according to your needs.

Additionally, we will handle your paperwork to the competent organizations in order to expedite the opening of your company or business, minimizing your travels.

Why start a company in Andorra?

High living standards

Andorra has one of the highest income per capita in the world. In 2017, the GDP increased to 2,674.1 million Euros, being 35,753 Euros the GDP per capita. The GDP per capita in purchasing power parity (PPP), which is the rate that allows for international comparisons, stands at $ 49,153.5. This figure places Andorra in a position next to countries such as Germany, Sweden and Denmark. This list was headed by Qatar with $ 128,378. France’s GDP per capita in purchasing power parity was $ 42,850 and the amount for Spain was $ 37.998.

Low tax burden

Income tax: This tax is very attractive for foreign investors, since its rate is only at 10%, a percentage far lower compared to most European countries. In addition, some companies, depending on their business activity can benefit from an 80% reduction in the tax base, resulting in an effective rate of 2%.

Personal income tax: It’s similar to its neighbouring countries but with a considerably lower tax rate. The rate is 10%, being the first 24,000 euros exempt of taxable income (from 24,001 to 40,000 euros, the tax rate is 5%), the first 3,000 euros of capital gain and dividend income from Andorra are also exempt, which significantly reduces the effective rate.

IGI: IGI is the equivalent to Value added tax (VAT), but as other taxes, it has lower rates. The standard rate is 4.5%, the super-reduced rate is 0% (health, education, housing lease), the special rate is 2.5% (transport, theatre, cinema, museums), reduced rate is 1% (food, water, books) and the higher rate is 9.5% (banking and financial services).

We must also mention that in Andorra there is no property tax, neither inheritance nor donation tax.

Personal expenses

One of the advantages of establishing a company in Andorra is the hiring of staff, it has a low social security contribution by the employer compared to other countries, which facilitates hiring and reduces fixed costs.

The Social Security contributions, which for Andorran companies are a 15.5%, in Spain and France exceed the 30%.

Other advantages

  • One of the highest living standards in the world
  • High level security with lowest crime rates
  • Less than three hours from Barcelona or Toulouse
  • Its deficit and debt to GDP ratio in the more moderate tranche of the OECD countries
  • High level of solvency of the Andorran Banking System
  • One of the best national Health services in the world
  • Three completely free education Systems in three languages
  • Great cultural diversity

Feel free to contact us

(+376) 734040

info@aaa.ad