Principal Gestion

Invest to Andorra

Le pays
Principal Gestion
Invest to Andorra

Each customer has different investment objectives and opportunities. Whether you have a personal business project or a project within your company, Principal Gestión will help you realise all your ambitions with an individual approach.

The Principality of Andorra ranks next to last among 32 European countries in terms of tax pressure on GDP.

Andorra

Why invest to Andorra?

Due to the tax system that meets all OECD (Organisation for Economic Co-operation and Development) standards, Andorra can be called the tax oasis:
  • Corporate tax, personal income tax and income tax for non-residents is a maximum of 10%.
  • IGI, the general tax (equivalent to VAT), is 4.5%
  • There is no double taxation in the country.
In addition to investment attractiveness, investors value other aspects of Andorra, such as security, legislation, political stability and quality of life.

Main taxes in Andorra:
  • IRPF Income tax (personal income tax):
€40,000 and above at a maximum of 10%;
from EUR 24,000 to EUR 40,000 - 5%;
up to EUR 24,000 - 0% taxation.
Savings income up to €3,000 is not taxed.
The tax on the sale of cryptocurrencies is no more than 10%.
  • L'IS Corporate tax: Corporate income tax is levied at the standard rate of 10%, but in some cases provided for by law, the rate is reduced to 2%.
  • IGI (VAT equivalent tax): 4.5%, the lowest in Europe.
Dividends from companies are also not taxed (0%)

Andorra has no taxes on real estate, inheritance, or donations, so there is no need to declare property outside the country to avoid taxation.

Principality's public debt income, dividends paid to shareholders of Andorran companies (already taxed through company profits), capital gains from the sale of investments or shares (listed or unlisted companies) or ETFs (exchange traded funds) are not taxed unless you own more than 25% of the shares or funds, or have held them for more than 10 years. There is no dividend tax for residents and no withholding tax.
The Principality of Andorra's Law 10/2012 of 21 June on Foreign Investment allows the establishment of companies with 100% foreign capital. In addition to setting up a business in the Principality, non-residents may also invest in Andorra by purchasing real estate, providing a foreign real estate investment permit to be obtained. For non-resident foreign investors, the company or enterprise will pay taxes in Andorra, submitting to the taxation of the country of tax residence.
Investing to Andorra is profitable both in terms of capital investment and residency. The low tax burden on companies based in the Principality provides a competitive advantage to owners. If the investor is also resident in Andorra, company dividends are taxed at 0%. Investing to Andorra can be done either by setting up a new company or partnership, acquiring an existing company or participating in the share capital of a local company.
Purchasing property in Andorra is very attractive in terms of its profitability, as the market has maintained an upward trend of over 10% over the past few years. Every investor can find an option that best suits their expectations. Selling property or renting it out are some examples of the opportunities offered by the local market.
As experts in property market valuation, we help our clients identify the best investment opportunities.
The procedure for setting up a business:
  • Company name registration.
  • Applying for a foreign investment permit for each non-resident shareholder or non-resident partner
  • Bank account registration.
  • Signing and notarising all registration documents
  • Activation of the company's activities in the municipality. Hiring at least one employee
In addition to the traditional business sectors, Andorra offers opportunities for development in the fields of healthcare and social security, biotechnology or emerging technologies (Fintech, e-sports), and others.
We offer our clients support in establishing and strengthening their business activities, introducing them to the most competent agents in their field of activity, identifying opportunities for growth and offering the best partnerships to develop their business.

Ready to help you!