Investment Funds Andorra

Investment funds are collective financial instruments grouping contributions of residents or non-resident in Andorra to make diversified investments to obtain the best return. Investments can be in the stock market, buying assets, or in deposits managed by the bank.

Participants can invest in different financial instruments to diversify capital or invest in a single fund. Public or private funds are usually managed by Andorran banks, investment companies, or managers, with extensive knowledge of the Andorran and foreign markets.

Although investment funds have existed for a long time, for years the most conservative used to invest in time deposits, whose profitability became very high during periods of high-interest rates. In recent years and with the fall in interest rates, investors searched for other options.

There is a general idea that investment funds are focused on large fortunes, but the truth is that they are accessible to anyone. In fact, there are investment funds in Andorra that do not have a minimum contracting amount, although it should be clarified that the fund managers apply commissions depending on the amount contributed. Usually, the larger the amount, the lower the commission.


Why an investment fund in Andorra?

One of the reasons that attract foreign investment to the Principality of Andorra is the legal and financial security combined with the Andorra tax system. In general, the low taxes in Andorra allow companies and individuals to optimize their cost structure and maximize profits. That is the ideal combination of factors that any business angel investor is looking for. Besides, Andorra has an excellent health system, high quality of life, and enviable geography, moving your residence to Andorra is definitely a decision to consider.

The investment funds in Andorra consist of the monetary contribution of a collective with the objective that an expert professional group invests it in financial assets, such as the following:

Basically, an investment fund is a group that contributes capital to be invested by experienced professionals following a previously agreed strategy. Logically, the intention for investors is to obtain the best returns in a given period of time.

Types of investment funds

The type of fund you choose depends on your profile and needs. Take into account variables such as risk, availability, term, profitability. Look for expert advice to get the necessary information to make the most appropriate decision.

Legal framework for fund managers in Andorra

The creation of funds, as in other countries, is subject to a strict regulatory framework. Andorra as a jurisdiction offers tax advantages for various types of investment funds.

The fund manager, in charge of administering and representing the fund members, is managing the assets, being responsible for how much, where, how, and when to invest the capital contributed by the investors.

Due to the Monetary Agreement between Andorra and the European Union, the Andorran legal framework had to be adapted by creating the Andorran Deposit Guarantee Fund (FAGADI) and the Andorran Investment Guarantee System (SAGI).

Fund managers authorized to operate in Andorra are regulated and supervised by the Andorran Financial Authority (AFA), being members of the SAGI.

The above agencies aim to ensure that banking and financial institutions in the Principality of Andorra are adapted to European regulations and that depositors and investors have confidence in a transparent Andorran financial system that complies with the law.

If you would like more information about investment funds in Andorra, requirements for constitution, operation, legal and fiscal framework, we invite you to contact our consultants for a personalized review of your case.