Living in Andorra · Updated October 2026

Moving to Andorra as an entrepreneur or business owner

Set up or move your company, get self-employed residency and find the home you need to get started. Explained with the 2026 requirements.

10%corporation tax
0%dividends from your Andorran company
10%top income tax rate
€50,000AFA contribution

Why Andorra works for business owners

  • Profits of an Andorran company are taxed at 10% and the dividends you pay yourself as a resident are exempt: the total tax cost on profit is 10%.
  • Your salary is taxed at no more than 10%, with the first €24,000 tax-free. There is no wealth tax and no inheritance tax.
  • Double tax treaties with the UK, Spain, France and Portugal, among others: the structure is legal and transparent.
  • 2.5–3 hours from Barcelona and Toulouse, with fibre broadband across the whole country and a safe environment for families.

Your residency: self-employed

This is the route for people who set up or run their own company in Andorra. Since Llei 2/2026 the requirements are:

ShareholdingMore than 34% of the company and a director's role
ContributionA non-refundable €50,000 to the AFA (digital economy, innovation and high-tech projects are exempt)
ResidenceLive in Andorra more than 183 days a year
InvestmentProven within 6 months; minimum share capital for a limited company: €3,000
Social securitySelf-employed CASS: 22% on a chosen base (about €147 to €588 a month in 2026)
2026 quota150 permits for investment or business

What it means in numbers

With €200,000 of profit, your Andorran company pays €20,000 in tax and the dividend you pay yourself as a resident is exempt: you keep €180,000. If you also draw a £100,000 salary, you keep about £86,850 net in Andorra, compared with about £68,560 in the UK.

Tax calculator →

The home you need

You need an address in Andorra to apply for residency, and the rental market is very tight (fewer than a hundred flats advertised in the whole country in Q3 2026). Most business owners choose a two- or three-bedroom flat in Andorra la Vella or Escaldes-Engordany, close to banks, accountants and offices, and many buy from the start.

Homes to get started in Andorra

See all properties →

Your move, step by step

  1. Plan your tax exit with an adviser (including the UK Statutory Residence Test or exit taxes elsewhere).
  2. Set up the company and, as a foreigner, apply for foreign investment authorisation.
  3. Find a home to rent or buy, with the reservation conditional on the authorisations.
  4. Apply for self-employed residency at Immigració and make the AFA contribution.
  5. Register with the comú, sign up with CASS and live in Andorra more than 183 days a year.

Frequently asked questions

Can I keep working with clients in the UK, Spain or France?

Yes, your Andorran company can invoice clients in any country. What matters is that the company is genuinely managed from Andorra and your life is here; if everything still depends on your home country, its tax authority may challenge the move.

How much does it cost to set up a company in Andorra?

Budget for the €50,000 AFA contribution (except digital or technology projects), €3,000 minimum share capital for a limited company, and accountant and notary fees.

Do I have to buy a home?

No, a rental contract is enough. But there are very few homes to rent, so many families buy straight away.

Is there an exit tax when I leave?

The UK has no general exit tax, but temporary non-residence rules apply if you return within five years. Spain and France have exit taxes on large shareholdings. Plan before you move.

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