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Tailored Solutions for Andorra Company Setup & European Tax Optimization

             Why Set Up Your Company in the Andorra? 🇦🇩

1

Attractive Tax Environment 

  • 10% Corporate Tax Rate - One of Europe's lowest corporate tax rates
  • 0% Capital Gains Tax - No tax on capital gains for residents
  • Maximum 10% Personal Income Tax - Capped personal tax rate
  • No Inheritance Tax - Between spouses and direct descendants
  • No Wealth Tax - No annual wealth or net worth taxes
  • Territorial Taxation - Foreign-sourced income may be exempt 
2

Strategic European Location 

  • Between France & Spain - Access to two major EU markets
  • Schengen Area Access - Free movement within European borders
  • EU Proximity - 2-hour drive to Barcelona, 3-hour to Toulouse
  • Mountain Location - Secure, private, and prestigious environment
  • Time Zone Advantage - Central European Time (CET) 
3

Privacy & Confidentiality 

  • Banking Secrecy - Strong financial privacy laws
  • Confidential Ownership - Nominee services available
  • Discretionary Jurisdiction - Respected for wealth management
  • Professional Secrecy - Legal protection for professional advisors
  • Stable Political System - Co-principality with France and Spain 
4

Business-Friendly Environment 

  • 100% Foreign Ownership - No local shareholder requirements
  • Flexible Corporate Structures - Adaptable to business needs
  • Modern Infrastructure - Advanced telecommunications and transport
  • Skilled Workforce - Multilingual professionals (Catalan, Spanish, French)
  • Quality of Life - High standard of living and safety 
5

Financial Services Hub 

  • Private Banking - Sophisticated wealth management services
  • Investment Funds - Growing fund management industry
  • Family Offices - Specialized services for ultra-high-net-worth
  • Asset Management - Professional investment management
  • Trust Services - Asset protection and succession planning 
6

Regulatory Framework 

  • OECD Compliance - White list jurisdiction
  • EU Cooperation - Tax information exchange agreements
  • AML/CFT Standards - International compliance standards
  • Professional Regulation - Licensed financial service providers
  • Transparent Governance - Clear regulatory framework 
7

Residency Benefits 

  • Passive Residency - Minimum €400,000 investment
  • Active Residency - For business owners and professionals
  • Tax Residency - Attractive personal tax rates
  • EU Access - Visa-free travel within Schengen area
  • Healthcare System - Excellent medical facilities 
8

Economic Stability

  • Stable Currency - Euro currency (unofficial adoption)
  • Strong Economy - Diversified economic base
  • Low Debt - Minimal government debt levels
  • Political Stability - Unique co-principality system
  • Safe Haven - Secure jurisdiction for wealth preservation 
9

Specialised Industries 

  • Tourism & Hospitality - Mountain resort and ski industry
  • Retail & Commerce - Duty-free shopping destination
  • Technology & Innovation - Growing tech sector
  • Real Estate - Premium property market
  • Financial Services - Banking and wealth management 

    Andorra Company Types & Structures 


Andorra's most popular business structure offering flexibility, limited liability, and European tax advantages for international businesses.

Key Benefits of Andorra SAU/SL:

  • Limited Liability Protection for shareholders and directors
  • 100% Foreign Ownership - No local shareholder requirements
  • European Market Access - Strategic location between France and Spain
  • Tax Efficiency - 10% corporate tax rate with optimization opportunities
  • Flexible Share Capital - Minimum €3,000 share capital

Andorra companies provide significant advantages for European tax planning and wealth management.

The Andorran Branch Office serves as a strategic extension of our operations in the picturesque Principality of Andorra, nestled in the Pyrenees mountains between France and Spain. This office is dedicated to providing tailored services to our clients in the region, focusing on financial consulting, tourism development, and cross-border trade. With a team of local experts, the Andorran Branch Office aims to foster strong relationships within the community while promoting sustainable growth and innovation. Its prime location allows for easy access to both European markets and the unique cultural landscape of Andorra, making it an ideal hub for business development and collaboration.

The Andorran Partnership is a collaborative initiative aimed at fostering economic growth, cultural exchange, and sustainable development in the Principality of Andorra. This partnership brings together local businesses, government entities, and international organizations to enhance Andorra's position as a vibrant hub for tourism, finance, and innovation. By leveraging Andorra's unique geographical location and its rich cultural heritage, the partnership seeks to promote investment opportunities, support entrepreneurship, and enhance the quality of life for residents and visitors alike. Through strategic alliances and community engagement, the Andorran Partnership is committed to building a prosperous future for the region while preserving its natural beauty and cultural identity.

Andorran investment funds are financial vehicles established in the Principality of Andorra, designed to pool capital from various investors to invest in a diversified portfolio of assets. These funds benefit from Andorra's favorable regulatory environment, which offers tax advantages and a stable economic framework. They cater to both local and international investors, providing opportunities in various sectors, including real estate, private equity, and venture capital. With a focus on transparency and compliance, Andorran investment funds aim to deliver attractive returns while adhering to strict regulatory standards, making them an appealing option for those looking to invest in a growing European market.

Andorran trust structures are legal arrangements established under the jurisdiction of Andorra, a small principality located in the Pyrenees mountains between France and Spain. These structures are designed to provide asset protection, estate planning, and wealth management solutions.

In Andorra, trusts can be utilized for various purposes, including safeguarding family assets, facilitating succession planning, and optimizing tax efficiency. The country’s legal framework offers a high degree of confidentiality and flexibility, making it an attractive option for individuals and families seeking to manage their wealth.

Andorran trusts are governed by the principles of the Andorran Civil Code, which recognizes the validity of trusts and provides a clear regulatory environment. This allows for the establishment of both discretionary and fixed trusts, catering to diverse needs. Additionally, Andorra's favorable tax regime enhances the appeal of these structures, as they often result in lower tax liabilities compared to other jurisdictions.

Overall, Andorran trust structures serve as a strategic tool for asset management and protection, appealing to both local and international clients.

        Andorra Specialised Licenses 

Andorra offers specialised licensing for regulated industries with comprehensive regulatory frameworks. The Key Regulated Sectors: 

Andorran Financial Authority (AFA) regulation TXT

Asset management and investment advisory TXT

Life and general insurance services XXXX

UCITS and alternative investment fundsTXT

Ultra-high-net-worth family services TXT


STRATTFORT™ Andorra Services:

We deliver comprehensive services for the establishment and management of Andorra companies:

Tax & Structuring Advisory

Andorra tax optimisation and European structuring

Complete Documentation

All paperwork preparation and filing

Registered Office

Andorra registered office and business centres

Residency Processing

Andorra residence permits and tax planning

Banking Introduction

Facilitated bank account opening

Filing & Compliance

Annual filings and regulatory compliance.

Andorra Residency & Immigration

  • Passive Residency - Minimum €400,000 investment in Andorran assets
  • Active Residency - For entrepreneurs and business owners
  • Self-Employed Residency - For professionals and freelancers
  • Employee Residency - For employed individuals
  • Temporary Residency - Short-term residence permits
  • Start with the customer – find out what they want and give it to them.

Andorra Banking Services & Compliance

We assist you in selecting the ideal Andorra banks for your business and personal banking needs. From corporate accounts to private banking and wealth management, our expertise ensures access to the right financial institutions with competitive services and seamless onboarding.

Andbank

The Andorra's largest private bank 

Mora Banc

 Specialized private banking services

Crèdit Andorrà 

Leading commercial and private bank

Banking Services

  • Private Banking - High-net-worth wealth management
  • Corporate Banking - Business accounts and commercial services
  • Investment Services - Portfolio management and advisory
  • Trade Finance - International trade financing solutions
  • Multi-Currency Accounts - EUR, USD, GBP, CHF operations

Banking Requirements

  • Andorra Company Certificate - Certificate of incorporation
  • Directors' Documentation - Passports, proof of address, CVs
  • Business Plan - Detailed business activities and projections
  • Source of Funds - Documentation of initial capital sources
  • Minimum Deposits - €10,000-€50,000 depending on bank and services
  • Reference Letters - Professional and banking references

Annual Obligations of the Companies

  • Annual Accounts - Audited financial statements filing
  • Corporate Tax Return - Annual corporate income tax filing
  • Annual Return - Company registry annual filing
  • Social Security - Employee social security contributions
  • Statistical Surveys - Economic activity reporting

Corporate Governance

  • Board Meetings - Regular board meetings and resolutions
  • Shareholder Meetings - Annual general meetings
  • Company Secretary - Ongoing secretarial services
  • Registered Office - Maintain Andorran registered address
  • Statutory Records - Maintain company registers and records

Compliance Calendar

  • March 31 - Annual accounts filing deadline
  • September 30 - Corporate tax return filing
  • Throughout Year - Ongoing compliance monitoring
  • As Required - Regulatory updates and notifications

Success Stories & Case Studies

1

 Case Study 1: Spanish Entrepreneur

Client: Barcelona-based technology entrepreneur seeking tax optimization Structure: Andorra SAU with passive residency Benefits:

  • Reduced personal tax rate from 47% to 10%
  • Corporate tax rate of 10% vs. 25% in Spain
  • Maintained access to Spanish and French markets
  • €180,000 annual tax savings
2

 Case Study 2: French Family Office

Client: Ultra-high-net-worth French family seeking wealth preservation Structure: Andorran family office with private banking Benefits:

  • 0% capital gains tax for Andorran residents
  • Strong privacy protection and confidentiality
  • Professional wealth management services
  • Succession planning with favourable inheritance tax

.

3

 Case Study 3: International Investment Fund

Client: European investment manager establishing alternative fund Structure: Andorran investment fund with regulatory approval Benefits:

  • Attractive fund taxation regime
  • Access to European investor base
  • Professional fund administration services
  • Regulatory certainty and compliance support

Contact STRATTFORT™ for Andorra Company Formation

Ready to establish your business in Andorra and access the EU market? Contact our Andorra company formation specialists for comprehensive consultation on optimal structures for your business needs.

Contact us

Frequently asked questions - Setup Up & Operations in Andorra 🇦🇩 

BASIC COMPANY FORMATION

A: Andorra offers several business structures:

  • SAU (Sociedad Anónima Unipersonal) - Single-shareholder limited company
  • SL (Sociedad Limitada) - Private limited company (most popular)
  • Partnership - General or limited partnerships
  • Branch Office - Extension of foreign company
  • Investment Funds - UCITS and alternative investment funds
  • Trust Structures - Asset protection and wealth management

A: The typical timeline is:

  • Name Reservation: 1-2 weeks
  • Document Preparation: 2-3 weeks
  • Registration Filing: 2-4 weeks
  • Certificate Issuance: 1-2 weeks
  • Total Timeline: 6-10 weeks
  • With Banking: Add 2-4 weeks for account opening
  • With Residency: Add 4-6 months for residency processing

A: The minimum share capital is €3,000 for Andorran limited companies (SAU/SL). This is significantly lower than many European jurisdictions and can be paid in cash or assets. The capital must be deposited in an Andorran bank account during the formation process.

A: Yes, 100% foreign ownership is permitted in Andorra. There are no requirements for local shareholders or directors. However, the company must have a registered office in Andorra and comply with local regulatory requirements.

A: Physical presence is not required for company formation. STRATTFORT™ can handle the entire process remotely using powers of attorney. However, you may need to visit Andorra for:

  • Bank account opening (some banks require personal visits)
  • Residency applications (if seeking Andorran residency)
  • Business license applications (for regulated activities)

COSTS & FEES

A: Total setup costs typically range from €15,000 to €25,000:

  • Government Fees: €1,200 (registration)
  • Professional Fees: €12,000-€20,000 (depending on complexity)
  • Registered Office: €2,000-€5,000 annually
  • Banking Deposit: €10,000-€50,000 (bank dependent)
  • Notary Fees: €500-€1,000
  • Translation Costs: €300-€800

A: Ongoing annual costs include:

  • Corporate Tax: 10% on profits
  • Annual Return Filing: €300-€500
  • Registered Office: €2,000-€5,000
  • Accounting & Audit: €3,000-€8,000
  • Company Secretary: €2,000-€4,000
  • Tax Advisory: €2,000-€5,000
  • Total Annual Costs: €10,000-€25,000

A: Andorra is competitively priced:

  • Setup Costs: Lower than Monaco, similar to Malta
  • Annual Costs: Moderate compared to Switzerland
  • Tax Rates: 10% corporate vs 25%+ in most EU countries
  • Residency Investment: €400,000 vs €1M+ in Monaco
  • Overall Value: Excellent for European tax optimization

TAX BENEFITS & OPTIMISATION

A: Key tax benefits include:

  • 10% Corporate Tax Rate - One of Europe's lowest
  • 0% Capital Gains Tax - For Andorran residents
  • 0% Inheritance Tax - Between spouses and direct descendants
  • Maximum 10% Personal Tax - Capped personal income tax
  • No Wealth Tax - No annual net worth taxation
  • Territorial Taxation - Foreign income may be exempt
  • EU Tax Treaties - Growing network with European countries

A: The 10% rate applies to:

  • All Corporate Profits - Standard rate for most activities
  • Reduced Rates Available - For certain activities (holding companies, intellectual property)
  • No Minimum Tax - Only pay on actual profits
  • Deductions Allowed - Standard business expense deductions
  • Loss Carry-Forward - Losses can offset future profits
  • Quarterly Payments - Tax paid in quarterly installments

A: Yes, Andorra offers excellent European tax optimization:

  • EU Market Access - Strategic location between France and Spain
  • Tax Treaty Network - Agreements with Spain, France, Portugal, Luxembourg
  • Holding Company Benefits - Efficient structure for European investments
  • Residency Planning - Personal tax optimization through Andorran residency
  • Succession Planning - Favorable inheritance and gift tax treatment
  • Professional Advice - STRATTFORT™ provides comprehensive tax planning

A: Andorra's indirect tax system:

  • IGI (Indirect General Tax): 4.5% standard rate (similar to VAT)
  • Reduced Rates: 1% and 2.5% for certain goods/services
  • EU Customs Union: Special relationship with EU for trade
  • Import Duties: Generally low or exempt for many goods
  • Professional Services: Often exempt from IGI
  • Export Activities: Generally zero-rated

RESIDENCY & IMMIGRATION

A: Andorra offers several residency programs:

  • Passive Residency: €400,000+ investment, minimal physical presence
  • Active Residency: For entrepreneurs and business owners
  • Self-Employed Residency: For professionals and freelancers
  • Employee Residency: For employed individuals
  • Temporary Residency: Short-term permits for specific purposes

A: The investment can be made through:

  • Real Estate: Minimum €400,000 property purchase in Andorra
  • Bank Deposit: €50,000 with Andorran Financial Authority (AFA)
  • Business Investment: Investment in Andorran company or business
  • Government Bonds: Investment in Andorran government securities
  • Combination: Mix of above investment types to reach minimum

A: Residency processing timeline:

  • Initial Application: 4-6 weeks
  • Document Processing: 6-8 weeks
  • Investment Completion: 2-4 weeks
  • Background Checks: 4-6 weeks
  • Approval & Issuance: 4-6 weeks
  • Total Timeline: 4-6 months
  • Renewal: Every 2 years initially, then longer periods

A: Physical presence requirements:

  • Passive Residency: Minimum 90 days per year in Andorra
  • Active Residency: Minimum 90 days per year
  • Tax Residency: 183+ days for full tax benefits
  • Flexibility: Can travel freely within Schengen area
  • Monitoring: Andorran authorities track presence electronically

BANKING & FINANCE

A: Major Andorran banks include:

  • Andbank: Andorra's largest private bank with international presence
  • Crèdit Andorrà: Leading commercial bank with comprehensive services
  • Mora Banc: Specialized private banking and wealth management
  • Banco Sabadell Andorra: Spanish banking expertise in Andorra
  • Vall Banc: Commercial and investment banking services

A: Standard banking requirements:

  • Company Documentation: Certificate of incorporation, articles
  • Director Information: Passports, proof of address, CVs
  • Business Plan: Detailed activities and financial projections
  • Source of Funds: Documentation of initial capital sources
  • Minimum Deposits: €10,000-€50,000 depending on bank
  • Reference Letters: Professional and banking references
  • Due Diligence: KYC and AML compliance documentation

A: Yes, Andorran banks offer:

  • EUR Accounts: Primary currency (Euro)
  • USD Accounts: US Dollar operations
  • GBP Accounts: British Pound services
  • CHF Accounts: Swiss Franc banking
  • Other Currencies: Available upon request
  • Investment Services: Portfolio management in multiple currencies
  • Trade Finance: International trade financing facilities

A: Andorran banks provide:

  • Private Banking: High-net-worth wealth management
  • Portfolio Management: Professional investment advisory
  • Family Office Services: Ultra-high-net-worth family services
  • Trust Services: Asset protection and succession planning
  • Real Estate Investment: Property investment opportunities
  • Alternative Investments: Private equity, hedge funds, commodities

BUSINESS & OPERATIONS

A: Andorra allows most business activities:

  • Trading & Commerce: Import/export, distribution, retail
  • Financial Services: Investment advisory, wealth management
  • Technology: Software development, IT services, e-commerce
  • Real Estate: Property investment, development, management
  • Tourism: Hotels, restaurants, entertainment, ski resorts
  • Professional Services: Consulting, legal, accounting, advisory
  • Manufacturing: Light manufacturing and assembly

A: Some activities require special licenses:

  • Banking: Requires banking license from AFA
  • Insurance: Insurance license required
  • Investment Services: Financial services authorization needed
  • Gaming: Online gaming licenses available
  • Telecommunications: Special permits required
  • Pharmaceuticals: Health authority approvals needed

A: Office requirements:

  • Registered Office: Required for all companies (can be virtual)
  • Physical Presence: Not required for all business types
  • Regulated Activities: May require physical office and local staff
  • Residency Applications: Physical office may strengthen application
  • Flexible Options: Serviced offices, co-working spaces available
  • Costs: €2,000-€8,000 annually depending on location and services

A: Employment in Andorra:

  • Local Hiring: Can hire Andorran and EU citizens freely
  • Work Permits: Required for non-EU employees
  • Social Security: Mandatory contributions for all employees
  • Employment Law: Protective labor laws similar to EU standards
  • Minimum Wage: Approximately €1,200 per month
  • Skilled Workers: Good availability of multilingual professionals

COMPLIANCE & REGULATIONS

A: Annual obligations include:

  • Annual Accounts: Audited financial statements (companies >€600k revenue)
  • Corporate Tax Return: Filed by September 30
  • Annual Return: Company registry filing
  • Social Security: Employee contributions and filings
  • Statistical Surveys: Economic activity reporting to government
  • Board Meetings: Regular governance meetings and resolutions

A: Yes, Andorra maintains high standards:

  • OECD Compliance: White list jurisdiction since 2009
  • Automatic Exchange: CRS and FATCA reporting implemented
  • AML/CFT: Strong anti-money laundering framework
  • EU Cooperation: Tax information exchange agreements
  • Professional Standards: Licensed service providers required
  • Transparency: Beneficial ownership registers maintained

A: Non-compliance consequences:

  • Penalties: Fines for late filings or non-compliance
  • Company Dissolution: Possible for serious violations
  • Residency Revocation: For residency requirement breaches
  • Banking Issues: Account closure for compliance failures
  • Professional Support: STRATTFORT™ ensures ongoing compliance

COMPARISON WITH OTHER JURISDICTION

A: Andorra vs Monaco comparison:

  • Corporate Tax: 10% vs 33.33%
  • Personal Tax: 0-10% vs 0%
  • Setup Costs: €15-25k vs €30-50k
  • Residency Investment: €400k vs €1M+
  • Lifestyle: Mountain vs Mediterranean
  • Privacy: Similar high levels
  • EU Access: Both have special relationships

A: Andorra vs Switzerland:

  • Corporate Tax: 10% vs 8.5-21%
  • Setup Complexity: Simpler vs more complex
  • Banking: Excellent in both
  • Residency Costs: €400k vs CHF 250k+
  • EU Relations: Andorra closer to EU
  • Languages: Spanish/French vs German/French
  • Lifestyle: Both offer mountain living

A: Andorra advantages:

  • Tax Rates: 10% vs 35% (5% effective in Malta)
  • Privacy: Stronger banking secrecy
  • Lifestyle: Mountain vs Mediterranean
  • EU Membership: Malta/Cyprus are EU members
  • Complexity: Andorra simpler structure
  • Costs: Competitive with both jurisdictions

SPECIFIC INDUSTRIES

A: Excellent for holding structures:

  • 10% Corporate Tax: On dividend income
  • Participation Exemption: Potential exemptions for qualifying holdings
  • Treaty Network: Growing double taxation agreements
  • EU Access: Strategic location for European investments
  • Flexible Structure: Adaptable to various holding arrangements
  • Professional Services: Experienced advisors available

A: Yes, e-commerce is well-supported:

  • Digital Infrastructure: Excellent internet and telecommunications
  • EU Market Access: Easy access to European customers
  • Low Tax Rate: 10% corporate tax on profits
  • IGI (VAT) System: 4.5% on digital services
  • Logistics: Good connections to Spain and France
  • Professional Support: IT and digital marketing services available

A: Andorra is crypto-friendly:

  • Regulatory Clarity: Clear framework for crypto activities
  • Banking Support: Some banks work with crypto businesses
  • Tax Treatment: 10% corporate tax on crypto profits
  • Innovation Hub: Growing blockchain and fintech sector
  • Professional Services: Crypto-experienced advisors available
  • Compliance: Strong AML/CFT framework for legitimacy

GETTING STARTED

A: Getting started is simple:

  1. Free Consultation: 60-minute discussion of your requirements
  2. Structure Recommendation: Optimal Andorran setup for your needs
  3. Documentation: Gather required documents and information
  4. Engagement: Sign service agreement and begin process
  5. Formation: Complete company registration and setup
  6. Banking: Open Andorran bank accounts
  7. Ongoing Support: Compliance and administrative services

A: Required documentation:

  • Passport Copies: All directors and shareholders
  • Proof of Address: Utility bills or bank statements (last 3 months)
  • CV/Resume: Professional background of directors
  • Business Plan: Company activities and financial projections
  • Source of Funds: Documentation of capital sources
  • Criminal Record Certificate: Clean background verification
  • Reference Letters: Bank or professional references
  • Power of Attorney: For remote processing

A: Yes, we provide complete remote service:

  • Document Collection: Secure online portal for documents
  • Company Formation: Complete registration without your presence
  • Banking Introduction: Facilitate account opening process
  • Ongoing Compliance: Remote administration and support
  • Regular Updates: Progress reports throughout process
  • Local Representation: Our Andorran partners handle local requirements

A: Comprehensive ongoing services:

  • Annual Compliance: All required filings and returns
  • Tax Advisory: Ongoing tax optimization and planning
  • Corporate Governance: Board meetings and resolutions
  • Banking Support: Ongoing banking relationship management
  • Regulatory Updates: Keep you informed of changes
  • 24/7 Support: Priority support for urgent matters
  • Expansion Services: Support for business growth and development

A: Tax savings depend on your situation:

  • Corporate Tax: Save 15-25% vs most EU countries (10% vs 25%+)
  • Personal Tax: Save significantly if you become Andorran resident
  • Capital Gains: 0% for residents vs 20%+ in most countries
  • Inheritance: 0% vs 40%+ in many jurisdictions
  • Example: €1M profit = €100k tax in Andorra vs €250k+ elsewhere
  • Professional Advice: We calculate specific savings for your situation

A: Absolute confidentiality guaranteed:

  • Banking Secrecy: Strong Andorran financial privacy laws
  • Professional Secrecy: Legal protection for advisor-client privilege
  • Secure Systems: Encrypted document handling and storage
  • Limited Disclosure: Only as required by international agreements
  • STRATTFORT™ Standards: Highest confidentiality standards maintained
  • Regular Reviews: Ongoing privacy and security assessments

A: Business relocation services:

  • Structure Analysis: Review current setup and optimization opportunities
  • Migration Planning: Step-by-step relocation strategy
  • Tax Optimization: Minimize tax impact of relocation
  • Operational Continuity: Ensure business continues smoothly
  • Employee Relocation: Support for key staff moves
  • Regulatory Compliance: Handle all legal and regulatory requirements
  • Timeline: Typically 6-12 months for complete relocation