The Principality of Andorra has a strategic position on the European continent, as it is located between Spain and France, being close to dynamic cities such as Barcelona, Toulouse or Girona. Nowadays, the Andorran economy has a markedly expansive character, as a result of an oppennes and liberalization process that has increased in recent years. Facts as the liberalization of foreign investments, together with the signing of non-double taxation agreements, have positioned the country to compete on equal terms with neighboring economies, turning the Principality into an attractive destination for new sectors and companies. Therefore, setting up or relocating a business in Andorra has many advantages, among which we highlight the country's favorable
economic scenario, as well as its solid and stable financial system, and also the attractive tax system.
Crowe Andorra we consider that foreign investments and companies
contribute to the economic development of the country, offering a
greater diversification of the economy and providing a high added value
to the Principality. For this reason, we have a team of professionals
highly specialized in the field, who analizes the best alternative for
each foreign investor, as well as carry out all the needed procedures to
reach the effective incorporation of the foreign investor in the
Principality of Andorra.
Nowadays, there are no limitations for a foreign investor to set up or purchase an Andorran company, other than the provisions contained in the foreign investment regulation. In this context, a foreign natural or a legal person can acquire (either through the subscription of new shares, either the acquisition of shares of an already existing company) up to 100% of the share capital of a company incorporated in Principality of Andorra. However, it should be noted that the Government must authorize foreign investments that exceed 10% of the share capital. Therefore, the foreign investor will have to comply with the provisions contained in the current legislation on foreign investment, apart from the normal requirements and necessary steps for the incorporation of a company.
The process of setting up companies in Andorra by foreign partners is made up of a series of procedures and authorizations that are detailed below:
Once incorporated, Andorran companies must fulfill a series of formal obligations, which are indicated below:
Formal obligations of companies
Live in Andorra
These permits allow its owners to live and work in the Principality of Andorra, either as an employee or as a self-employee, temporarily or permanently.
Within the active residences, we distinguish those obtained to work for one's own account, known as self-employee, from those obtained to work as an employee.
Within passive residences, we distinguish different types:
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