Dropshipping Andorra

Digital commerce companies using dropshipping find Andorra an attractive place to establish an e-commerce business. Although Andorra is not a major products supplier, serves as a fiscally beneficial hub for intermediary companies in the distribution channel between producer and end customer. The principality also offers business owners personal residency through the company owner/shareholder active residency program. Dropshipping entrepreneurs may find this option of working and living in Andorra very beneficial.

Dropshiping Company in Andorra

Andorra is not a member of the European Union (EU) and VAT obligations are different. Depending on the setup of a dropshipping company and the sourcing of products in Andorra, there are several opportunities to optimize the VAT-related tax obligations of your business. This is done by using non-European suppliers to ship directly to EU consumers. Since EU VAT law is very complex, we recommend a proper consultation to analyze whether your Andorra digital commerce business qualifies for tax advantages. The fulfillment location, shipping destination, country where the product is coming from are just a few aspects to consider when setting up your dropshipping company in Andorra.

Companies considering dropshipping in Andorra as a business model should also investigate payment channels available before setting up a business. There are limitations compared to other EU countries when it comes to choosing PSPs (Payment Service Provider), general payment platforms, and registering with different marketplaces such as Amazon, Shopify, or eBay. Many of these platforms do not yet have a proper legal infrastructure in Andorra. Therefore, alternative solutions for a company’s payment methods must be considered.

Our consultants are experienced in setting up dropshipping companies in Andorra. We will assist you with all relevant aspects of a business and tax optimization. We recommend requesting a consultation meeting to discuss your case.

Dropshipping for Entrepreneurs and Store Owners in Andorra

For entrepreneurs and/or stores in Andorra interested in setting up an online store has an obvious advantage, that of not having to work directly with the supplier’s stock, thus minimizing the financial risk. In traditional and Internet sales, one of the biggest drawbacks is to have tied-up capital with which no direct income is obtained. Dropshipping allows you to completely avoid this major drawback and allows you to focus all resources, concerns, and time on what really matters in the online store, which is to sell.

Andorra has the lowest tax on products and services in Europe, 4.5% (IGI), you will only pay 10% in corporate tax. In addition, the maintenance costs of a company in Andorra are a maximum of €850. On other hand, Andorra could be a favorite choice of remote workers, with soon to be introduced digital nomad residency.