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 folkloric 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.
- 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.
- 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..
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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.
France
From 1 January 2022, a flat rate of 25% was established, regardless of the total tax result.
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)
Spain
France
Switzerland
Luxemburg
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.
France Germany
Switzerland
May vary from 20-45% depending on the canton and municipality.
EU Average
Andorra
Between 5-10% from 24000 EUR, any lesser amount is exempt.
Andorra key figures
Andorra among the 25 richest countries in the world
Andorran residents live the longest after Japanese as per WHO data
Andorra is one of the few countries in the world with 100% fiber optic coverage.
Andorra is one of the oldest countries existing in the world. Neutrality and stability mark its history of the past 700 years.