Establishing Your Business in Andorra

Favorable Taxation and Economic Attractiveness in Andorra

Andorra is swiftly becoming the preferred hub for investors, with foreign direct investments contributing 12% to the GDP in 2023. The nation boasts one of the most advantageous tax systems globally, a pivotal factor for businesses contemplating establishing a presence within its borders.

Robust Tax Structure

Andorra's tax appeal is anchored in a remarkably low VAT rate of 4.5%, coupled with capped income taxes for corporations and individuals set at 10%. This distinctive feature, complemented by an exceptional social and natural environment and a well-established economic and financial model, positions Andorra as an exceptionally competitive framework.

Welcoming Foreign Capital

Andorra actively fosters foreign investments through a comprehensive reform program geared towards opening up its economy. Fiscal coordination and collaboration form the crux of these reforms, cultivating a business-friendly atmosphere. Moreover, the nation champions innovation through collaborative ventures with globally recognized entities.

Tangible Tax Advantages

The country presents an enticing tax framework, with no levies on wealth, inheritances, or gifts. Capital gains are subject to personal income tax (IRPF), and both corporate and personal income tax rates do not surpass 10%.

Tax Agreements and Data Exchange

Andorra has established eight conventions to prevent double taxation, a pivotal element in attracting new investors. These agreements facilitate seamless business creation and operation by circumventing the duplication of tax payments. Currently, negotiations are in progress to expand these conventions.

Global Collaborations

Andorra has forged tax conventions with several countries, including the United Arab Emirates, Spain, France, Luxembourg, Croatia, Belgium, Liechtenstein, Malta, San Marino, the Czech Republic, Monaco, South Korea, Portugal, Cyprus, Hungary, the Netherlands, and Iceland.

Transparent Tax Information Exchange

The Principality of Andorra is wholeheartedly committed to tax information exchange. Since 2009, it has inked tax information exchange agreements with 24 countries, encompassing Germany, Argentina, Australia, Austria, Belgium, Denmark, Spain, Finland, France, Italy, Liechtenstein, Monaco, Norway, the Netherlands, Poland, Portugal, the Czech Republic, the Republic of Korea, San Marino, Sweden, and Switzerland.

Andorra provides an inviting tax environment, fortified by international conventions and a steadfast commitment to tax transparency, establishing the country as a premier destination for businesses aiming to thrive in a growth-friendly setting.