Starting a company in Andorra and relocating: a practical guide for entrepreneurs

Every year more entrepreneurs, consultants and content creators move their activity to the Principality. The reason is simple: the combination of 10% corporate tax, dividends exempt from the resident's income tax and contained social contributions is offered by no European neighbour. Here is the full route.

Why it pays off

• 10% corporate tax as the general rate, with 5% on the first €50,000 of the tax base for small newly created companies.
• Dividends from Andorran companies exempt from the resident partner's income tax: from net profit to pocket there is a single 10% toll.
• 4.5% VAT instead of 21%.
• A stable, safe environment, 2-3 hours from Barcelona and Toulouse.

The steps to set up the company

1. Foreign investment authorisation: if the partner is a non-resident (or has been resident less than 3 years), the Government must authorise their stake. This is the step that sets the pace of the file.
2. Reservation of the company name of the future business.
3. Opening a bank account at an Andorran institution and depositing the share capital (€3,000 for an SL). Banking compliance is demanding: prepare the source of funds well.
4. Deed before a notary and registration of the company.
5. Trade registration and opening: registering the activity in the relevant parish — you will need a real physical address.
6. If you are going to work in your company: a self-employed residency and work permit, which requires effective residency in Andorra and a deposit with the AFA.

With the file well prepared, the whole process is usually resolved in 2 to 4 months.

The requirement no one mentions in time: the home

Both the residency permit and the company's registered office require a real address in Andorra. And it pays to move early: rental supply is scarce and buying requires its own procedure if you are not yet a resident. Our recommendation as an agency: look for the home in parallel with the corporate file, not after. You can explore the available portfolio, check the real prices by parish or calculate your mortgage — Andorran banks also finance new residents, on slightly stricter terms.

Where to settle?

It depends on your profile: Andorra la Vella and Escaldes concentrate offices, banks and services; La Massana and Ordino offer quality of life 10 minutes from the centre; Sant Julià, the best price-to-space ratio. In our parish guides you will find prices and the character of each area.

In short

Starting a company in Andorra is a regulated and perfectly manageable process with the right support: investment authorisation, bank, notary and residency permit. We handle the real-estate piece —home and premises or office— and work hand in hand with the country's specialised advisory firms. Tell us about your project.

Note: informative content, not legal or tax advice. Corporate and immigration requirements change; confirm your case with a professional.