Foreign investment in Andorra on the rise

Andorra offers an interesting combination of attractive taxation with high quality of life. In recent years, Andorra has made important advances so that foreign investors see the Principality as a safe destination, where the chances of incidents like forced liquidation of your investment account is as low as possible, and operating in accordance with international laws for their business.

Since the approval of Law 10/2012 on Foreign Investment in 2012, which allows 100% of the capital of an Andorran company to come from abroad, foreign investments have continued to grow. The purpose of this law is to promote economic openness for both the new and traditional sectors of the country.

It is also essential that people interested in investing even a small amount of money do a fair share of research before putting money anywhere. They can search for articles such as the best way to invest 50000 or how to invest, to learn about various schemes and profit margins.

Moreover, people who invest in various assets may have to also explore various investment management options to ensure at everything is up to date and in profits. When people put money in assets like business, equity, real estate, crypto, etc., in Andorra or elsewhere they have to keep track of the profits they are making or take the money out before they start going into debt. So, to avoid such mishappenings, the investors may take the assistance of CRE investor management software, which can help them oversee all the assets efficiently.

It should be noted that Andorra, in its effort to adapt to European regulations, is very strict regarding the origin of foreign capital. For this reason, Andorra dismisses foreign investments:

  • of resident, domiciled or national natural persons, or legal entities from some of the countries that do not cooperate with the International Financial Action Group (FATF), the entity in charge of developing and promoting policies to combat money laundering and terrorist financing.
  • of individuals or legal entities that obtain an unfavorable report related to the prevention of money laundering and terrorist financing.
  • that interfere or harm the exercise of public power, sovereignty and security of the country, public and economic order, the environment, public health or the general interest.

Since 2017, an upward trend has been observed, however, the increase in investment volume of 82% in 2019 compared to the previous year is impressive. It should be noted that 94% of the applications received have been approved and 77% of the companies have formalized the investment. It is a capital of around 790 million euros. The investment made in 2019 is 10 times that registered in 2013. And since business opportunities are on the rise, it might be safe to say that many people across the world are looking at Andorra as a possible place for relocation. For instance, many in the UK, especially in London, have been eyeing properties in this specific location. In fact, many people are supposedly considering relocating permanently, which is why they are known to hire real estate agents from firms like Finlay Brewer ( to sell their current homes.

Truth be told, the capital investment was the one that attracted the most capital to the country, followed by the provision of services and real estate development and construction. Most of the investments that have been formalized in Andorra come from neighboring countries: Spain with 45.5% and France with 25.2%.