BUSINESS IN ANDORRA

We have acted for successful people and their families for over 27 years. We have built up an in-depth understanding of the personal tax needs of our high net worth clients, and we can help them mitigate their exposure to tax both during their own lives and for future generations.

Our Company offers an all-round tax advice service with all the support that a major firm can provide. We take our duty of care very seriously. Clarity is everything. You will know exactly where you stand, what your liabilities are and we can help you plan for all possible contingencies.

Since 2012 non-resident are allowed to create an Andorran company with the right equal to the citizen or resident of the Principality.

The application for a such company must be approved by official government institution. It is good to know that the corporate taxes are quite low compared to most other countries.

Once approved by the Ministry of Commerce, incorporation must be confirmed by the Public Notary, who will issue the official Deed of Incorporation. Any sales of shares must also be confirmed by aforementioned Notary. Please take note that Bearer shares are not permitted under Andorran law.

We will be pleased to serve you by phone, WhatsApp, Telegram, Viber +376-325-487 (Andorra) or Skype (Linimex) and answer any questions you may have about the immigration process in Andorra.

ANDORRA: LEGAL FORMS

There are two main types of limited liability companies:

1. Societat Limitada (S.L.) This type of company is the norm for small family business enterprises with a limited number of shareholders and a minimum capital requirement of €3 000.

2. Societat Anònima (S.A.) This type of company is normally a requirement for multiple or mass shareholder situations and must meet a minimum capital requirement of €60 000.

The others institutional types of the companies in Andorra:

3. Andorra Societat Colectiva. This is the type of the company, where the capital is shared between the partners with unlimited liability. The procedures are the same as for S.L. and S.A.

4. Partnership

5. Sole Proprietorship

6. Branch (a subsidiary of foreign company that can be launched only by insurance ventures).

ANDORRA: REQUIRED DOCUMENTS:

The police certificate;
Passport;
Company charter draft;
Business and financial plans.

Submit the primary application to the Andorran Government for obtaining the official name of the company. The company’s name must be in Catalan. The process of the above mentioned applications may take up to 4 weeks.

Your have to come to Andorra for:

Opening a business bank account in an Andorran bank and transfers of charter capital sum (3.000 euro for S.L. or 60.000 euro for S.A.). The mentioned sum will be blocked up to the moment of the official registration in the Register of Companies.
Signing the society settlement act in the presence of notary officer.

ANDORRA: TAXES AND TRADING

In order to trade, the company must obtain a trading licence and register for VAT, the company tax. VAT is set at 4.5% and the Company Tax on profits is set at 10% from year 2023.
The Royalty tax rate is 10%.
The withholding tax rate on royalty payments to a foreign recipients is 5%.
Andorra doesn’t levy net wealth tax. There is no gift tax, no inheritance tax, no capital gain tax (except you sell you Andorran property).

An individual has to pay a capital gains tax if he sells an Andorran property with a profit.

If you sell your property within a year the capital gains tax rate is 15%.
If you sell your property in the second year of ownership the capital gains rate is 13%.
If you sell your property in the third year of ownership the capital gains rate is 10%, and the rate decreases by 1% annually after the third year.

Individual taxation:

Personal taxable income included employment income, capital gains, movable and immovable income, entrepreneurial revenue up to EUR 24.000 is 0%.
Personal taxable income between EUR 24,001 and 40.000 is 5%
Personal taxable income exceeding EUR 40.000 is 10%
Dividends received from Andorran company are exempt from taxation.

ANDORRA: PASSIVE RESIDENT TAXATION

In case if a passive resident choose the nonprofit regime declaration the person has to fill the application form number 305. In this case the passive resident only has to pay 30.000€ and present the application form number 306 of the IRPF (Impost sobre la Renda de les Persones Físiques)

On the other hand, in case that the passive resident do not choose the nonprofit regime declaration the person has to present the application form number 300 and pay for all the global income.

OUR SERVICES IN ANDORRA

Residence permit in Andorra for property owners and investors;
Residence permit in Andorra for entrepreneurs;
Residence permit in Andorra for artists or athletes;
Set up a company, business and financial plans;
Reunification Family;
Residency and work permit;
Assistance in: bank account opening, medical insurance enrollment, children’s registration at school, exchange of foreign driving license, etc.;
Legal service in corporate, banking, immigration and administration law;
Renting / buying a property;
Renewal of residence permits in Andorra;
Application for Andorran permanent residency;
Application for Andorran Citizenship.