Why choose Andorra for your business or tax 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..
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)
France
33.33% average corporate tax rate. 15% for companies with profits below 38000 EUR.
Spain
With temporary incentives for small or start up companies creating or maintaining jobs may be paying between 15-25%
Switzerland
May vary from 12-25% depending on the canton and municipality.
Ireland Cyprus Liechtenstein
12.5% in each jurisdiction
Andorra
Between 2-10% depending on the activity and business type. Read more here.
VALUE ADDED / SALES TAX (% standard rate)
Andorra
4,5% is the standard rate.
INCOME TAX RATE (% top marginal rate)
Spain
Top marginal rate between 45-52% depending on autonomous state and new policies for 2015 and 2016.
Switzerland
May vary from 20-45% depending on the canton and municipality.
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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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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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.
