Invest in Andorra

Andorra is one of the most attractive countries to invest in. If you are thinking of foreign investment, either by creating a company or buying shares of an existing one, investing in Andorra is possibly your best option.

The principality of Andorra is a modern country, benefiting from a unique and stable political framework, unique for its history, social and natural environment, and dynamic economy. Due to financial transparency recognized by the OECD, Andorra is placed on a level playing field with neighboring economies, while becoming a top destination for new sectors and businesses.

Foreign individuals and legal entities can invest in Andorra in companies, real estate, portfolios, and other assets.


Investing In Andorra

Foreign investment in Andorra has grown extraordinarily in recent years, motivated by low taxation, security, high standard of living, and a growing entrepreneurial ecosystem. Investment in Andorra requires authorization from the Government of Andorra, and is divided into the following subtypes:

In all cases, the Government of Andorra must approve the foreign investment within a maximum period of 30 days. The Government may only refuse authorization in the following cases, which are totally restrictive and marginal:

Why Invest in Andorra?

In the current process of economic opening and legal and financial homogenization, Andorra is recognized as a first-class, prosperous and attractive destination, ideal for individuals and legal entities wishing to reside or invest locally or beyond borders, with a competitive tax regime.

How to Invest in Andorra?

Open a Holding Company or Import-Export Business

Expand your international trade with the establishment of an import-export company, since trade taxes are between 2% and 10%. You also have the possibility to establish a holding company for your foreign investments which will be exempted from taxes, such as dividends for Andorran residents.

Establishing a Financial Management Company

If you want to finance from a foreign country company established in Andorra, it is very interesting to create a financial management company, as you will be able to apply for a corporate tax of 2%. Investing in Andorra from abroad offers many unique advantages.

Investing in the Andorran Real Estate Sector

During the years of crisis in Spain from 2008 to 2013, Andorran real estate prices have decreased considerably. Since this period, thanks to the opening Andorran economy there has been an increase in demand for real estate investment from countries such as China, Russia, UK, and France, causing a steady increase in prices especially in the high-end market, making each investment more interesting. Find more information about buying property in Andorra in a separate guide.

A larger number of foreign direct investments will lead to a higher demand for residential properties since for every new business start-up there is a demand for substance even with the smallest companies registered in private residences. The demand for private residences or apartments will continue to increase. First economic repercussions such as stabilization and sustainable growth of the real estate market are noticeable despite seasonal fluctuations.

Investing in Personal Happiness

In addition to the positive financial return, investors who want to apply for residency in Andorra also consider other criteria such as quality of life, taxation, and accessibility of the country. Andorra is very attractive given an unbeatable quality of life, a very low-income tax, tax exemptions on dividends, not to mention proximity to major European urban centers. Besides, non-European Union countries also benefit from the possibility of visa-free travel in the Schengen area countries. Major cultural centers such as France, Spain, and Italy are very accessible by air or land. Andorra is the ideal solution combining the mountainous countries of the Pyrenees and the Mediterranean Sea.

What is the Future for Andorran investments?

Andorra initiated important steps towards the opening and harmonization of the economy with the rest of the world, with no possibility of turning back. Despite the adjustment of its banking policy to OECD rules, Andorra remains a very attractive and competitive country for companies and individuals. Moreover, the Andorra residency by investment program offers more opportunities than ever, thanks to the signature of several treaties against double taxation with Spain, France, Portugal, Luxembourg, and other countries negotiations are in progress.

Furthermore, Andorra is negotiating an association contract with the European Union. However, this does not mean joining EU Community, but rather benefiting from several advantages such as the free movement of goods (although technically free movement is already in force), or enhancing the exchange of students and labor as desired by the European Central Bank (ECB), and making Andorra a full member of the Schengen area.

All developments should have a positive influence on Andorra as a country receiving foreign investment. It goes without saying that Andorran growth will probably be less important than in some ‘developing’ countries in the Middle East or in the Mediterranean area where the fiscal pressure is less strong, but it will be much more sustainable. Indeed, Andorra strictly complies with anti-money laundering policies and the country is implementing the directives of the OECD’s BEPS project, preparing perfectly to welcome investors.