Why choose Andorra for your business or fiscal residence ?

Discover Andorra’s numerous advantages and compare jurisdictions.

Before going into any details on the fiscal or tax advantages that Andorra has to offer as jurisdiction it is important to make a point on its extraordinary beauty. It is one of the best kept secrets in Europe in many aspects. It is hard to find a similar place that combines alpine landscape with Mediterranean touch. This is also true for its population which combines multiple cultures including Spanish, French, Portuguese and of course the local Andorran culture which is very similar to the neighboring Catalan culture. This is expressed in the four languages being present among much of the country, its Mediterranean lifestyle along with its great food and appreciation for socializing, family and folcloric traditions.

Low tax jurisdiction

Andorra is among the countries in Europe with the lowest corporate tax rate (2-10%) and income tax rate (5-10%). It has the lowest value added tax rate (VAT or sales tax) across Europe with 4.5%. There is no inheritance tax and social security contributions are among Europe’s lowest.

Strategic location + tax treaties

Andorra is located between France and Spain only 2h away from Barcelona and 2.5h away from Toulouse. Double tax treaties have been signed with and ratified in both countries..

100% open for business

Andorra is encouraging foreign investment and company formations. Residences are facilitated for company directors along with the opening of a business in Andorra.

Excellent living standard and infrastructure

Andorra’s per capita incomes is among the highest in Europe. Excellent healthcare and multilingual educational system. High speed fiber optic internet across the country.  

Consider the following comparisions with other jurisdictions

CORPORATE TAX RATE (% average)

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France

33.33% average corporate tax rate. 15% for companies with profits below 38000 EUR.

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Spain

With temporary incentives for small or start up companies creating or maintaining jobs may be paying between 20-25%

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Switzerland

May vary from 12-25% depending on the canton and municipality.

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Ireland Cyprus Liechtenstein

12.5% in each jurisdiction

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Andorra

Between 2-10% depending on the activity and business type. Read more here.

VALUE ADDED / SALES TAX (% standard rate)

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Spain

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France

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Switzerland

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Luxemburg

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Andorra

4,5% is the standard rate.

INCOME TAX RATE (% top marginal rate)

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Spain

Top marginal rate between 45-52% depending on autonomous state and new policies for 2015 and 2016.

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France Germany

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Switzerland

May vary from 20-45% depending on the canton and municipality.

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EU Average

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Andorra

Between 5-10% with 24000 EUR exempted. Read more here.

Andorra key figures

 

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Maximum corporate and personal income tax rate

in %

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Average salary

in EUR

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Worldwide ranking by GDP per capita

Andorra among the 25 richest countries in the world

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Worldwide ranking by life expectancy

Andorran residents live the longest after Japanese as per WHO data

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Population of Andorra

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Unemployment in %

2.4% unemployment

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Fiber Optic Internet Coverage in %

Andorra is one of the few countries in the world with 100% fiber optic coverage.

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Year of independence

Andorra is one of the oldest countries existing in the world. Neutrality and stability mark its history of the past 700 years.