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What you need to know when creating a company in Andorra

This is the most straightforward method of forming a business in Andorra. To begin, you should be aware that forming a company in Andorra takes at least three months. Because foreign investment was not allowed to have capital in Andorra a few years ago, it was absolutely necessary to have a partner in Andorra to be able to form a company in Andorra. However, since the opening of Andorran foreign investment a few years ago, anyone, whether a resident or a native of Andorra, has been able to establish a business.

Not only is there a benefit in terms of company tax, but there are also advantages in terms of personal taxation of the partners and, most importantly, in terms of dividend distribution. When a company is formed in Andorra, it is eligible to pay corporate tax in the country. The gains obtained are subject to a set tax rate of 10%. Furthermore, companies in Andorra receive various forms of assistance from the Andorran government, such as, for example, following the COVID-19 situation, all employers stopped contributing to social security, stopped paying self-employed workers, and received a monthly minimum salary from the government.

As a result, in addition to having a lower corporate tax than nations such as Spain, France, or Portugal, another advantage of forming a company in Andorra is the dividend distribution. Following with the benefits of forming a corporation in Andorra, we come to personal income tax, which has a maximum rate of 10% in Andorra.

As a result, in addition to having a lower corporate tax than nations such as Spain, France, or Portugal, another advantage of forming a company in Andorra is the dividend distribution. Following with the benefits of forming a corporation in Andorra, we come to personal income tax, which has a maximum rate of 10% in Andorra. As such, gestorĂ­a y asesorĂ­a fiscal en Andorra are necessary legal services when creating company in Andorra.

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