Moving to Andorra attracts more entrepreneurs, managers and investors every year in search of a more favourable tax environment. But to take full advantage of these opportunities requires to surround professionals mastering local machinery, both tax and regulatory. It is precisely the role of a specialised firm, capable of accompanying every stage of the entrepreneurial project.
To be retained
- Andorra attracts entrepreneurs through a favourable tax environment, including a 4.5% VAT (IGI) and a 10% corporation tax.
- The Andorran legal framework ensures great stability, while imposing strict accounting with confidential financial results.
- Since 1 January 2025, accounting obligations have been strengthened to ensure greater reliability and transparency with the tax administration.
- Some companies exceeding specific thresholds in terms of balance sheet, turnover or staff are legally required to carry out an external accounting audit.
- Using a local accounting firm makes it possible to secure administrative, fiscal and social management while facilitating the sustainable installation of foreign investors.
- Accountants accompany managers in complementary services such as obtaining tax residence, opening bank accounts or managing assets.
Andorra's tax and regulatory advantages
Use a accounting expertise in Andorra makes it possible to take advantage of one of Europe's most competitive tax environments, while securing every administrative step involved in creating or managing a company. This small principality nestled in the Pyrenees has built a strong reputation among international entrepreneurs, notably through tax rates well below the European average.
A tax system that benefits companies
The Attractive taxation Andorra is based on several concrete pillars. IGI, the local equivalent of VAT, is capped at only 4.5%, which is still well below what most neighbouring countries know. Corporate income tax does not exceed 10%, which is a major competitive advantage for any company wishing to develop its business while controlling its tax burden. In addition to this, there are particularly favourable provisions: no taxation on dividends, a total exemption on direct line estates, and the absence of a vehicle tax or ecological malus. This tax panorama makes it a destination of choice fortax optimisation entrepreneurs and investors alike.
A stable and secure regulatory framework
Beyond the figures, Andorra offers a stable legal framework that reassures project promoters. The accounting regulations have been tightened since 1 January 2025, further strengthening the reliability of the system. Every company must maintain strict accounting and report to Andorran tax authorities, which is deposited annually with the Ministry of Finance before July 31. An important point for investors: the financial results of Andorran companies remain confidential and are not published, a specificity that also encourages caution when buying back existing companies, due to lack of visibility on their accounts. The protection of personal data, regulated by the 2013 law, complements this secure system.
Professional support for Andorran accountants
Navigating this advantageous but specific tax system requires tailor-made support. One accounting firm experience then becomes an essential partner to guarantee the tax compliance the company while anticipating regulatory developments.
In-depth knowledge of local specificities
The mastery of Andorran fiscal subtleties is a key asset. In particular, some companies are subject to mandatory accounting audit This is the case for limited liability and public limited liability companies which meet at least two criteria from a balance sheet total of more than EUR 3.6 million, an annual turnover exceeding EUR 6 million, or a staff of more than 50 employees. It also covers listed companies, banking institutions, insurance companies, and companies with more than EUR 10 million in turnover for two consecutive years. This audit, carried out by a statutory auditor, is carried out in three distinct phases: the planning of accounting documents, the execution and verification of accounts and the return of the financial report. An experienced firm, with several years of activity in the country, will be able to guide each customer according to their own circumstances, relying on the international IFRS standard to ensure the reliability of accounts.
Services tailored to the needs of entrepreneurs
The proposed accompaniment goes far beyond simple bookkeeping. It generally includes the creation of a company, the seizure of accounting records, the preparation of the annual balance sheet, tax and social returns, and the deposit of accounts with the competent authorities. The accounting board is an integral part of this offer, with tariffs often adjusted quarterly to keep pace with company developments. Some firms also offer full support, including tax residence, bank account opening and real estate investment, all of which are valuable services for businesses. entrepreneurs, Leaders and investors wishing to settle permanently. The human dimension is also important: a multilingual team, speaking French, Catalan, Spanish and English, greatly facilitates exchanges for international clients. It should also be stressed that Andorran taxation, while rigorous, remains generally less complex than that in force in France, which considerably eases the administrative burden on managers. Finally, rigorous monitoring helps to reduce tax risks while also accompanying the heritage management, acquisitions or transmissions of enterprise, in a personalized consultancy logic adapted to each profile.