Creating an offshore company
in Andorra
Is the tax burden on your business too great, and you don’t want to change your tax residence?
Creating an offshore company is the solution for you, allowing you to :
Benefit from a tax rate close to 0% with no residency requirement
Optimize your assets and their transfer in full compliance with the law
Increase your dividends without flat tax or develop a profitable independent business
Prise de contact confidentielle et sécurisée
Notre cabinet juridique (Avocats, Fiscalistes, Experts comptables) vous accompagne tout au long de votre projet en principauté d’Andorre et en France
Why set up an offshore company?
Setting up an offshore company in Andorra allows you to maximise your profits and optimise your income, and is one of the solutions offered for tax optimisation.
Andorra is an attractive country in which to set up a company for several reasons
Andorra’s tax advantages
No tax on dividends
No misuse of corporate assets
Maximum corporate tax rate of 10%.
You own 100% of your company’s shares from the outset, unlike in other countries (e.g. Switzerland).
No VAT, but an internal tax called IGI at 4.5%.
Company vehicles: no TVS, no carbon tax and no ecological malus
Company expenses are 22% maximum
Andorra enjoys economic stability
Fast-growing market with numerous growth sectors (tourism, commerce, financial services and new technologies)
Andorra’s GDP has grown steadily in recent years, making it one of Europe’s most dynamic economies.
A very low unemployment rate, close to 0%.
Inflation lower than its European neighbors
More than 9.25 million tourists a year and tourism revenues estimated at 2.5 billion euros (2023 figures)
Andorra’s legislation is more flexible and less complex
Andorra is not subject to European directives
Double taxation agreements with numerous countries
Andorran companies are not obliged to publicly disclose the names of their beneficial owners.
Andorra has a good geographical position
Located in the heart of the Pyrenees, between France and Spain
Proximity to French and Spanish markets
Andorra is not a member of the European Union or the Schengen area.
There are 5 main types of foreign company in the Principality: holding company, services/consulting company, central purchasing agency, trading company and asset management company.
Setting up an offshore company in Andorra will enable you to make substantial savings and maximize your profits. Setting up an offshore company entitles you to residency in Andorra, but this is not a requirement. You can set up your company in Andorra and benefit from Andorran taxation without being resident there.
What is an offshore company?
It is a company that has established its registered office in a country where the directors are not domiciled.
An offshore company is also known as an extra-territorial company.
The main purpose of setting up an offshore company is often to take advantage of favourable tax treatment, but it may also be for other reasons such as asset protection, risk diversification or access to new markets.
Gestoria la Peguera, your trusted partner for setting up and developing your business in Andorra:
Our expertise means we can support you at every stage of your project:
Study of your
project :
- Initial study with one of our consultants on the feasibility of your project
- In-depth examination of your case with our tax specialists and lawyers
- Precise assessment of the tax impact and the measures to be put in place
Setting up
your company :
- Administrative procedures
- Legal formalities carried out by our firm or in collaboration with your advisor
- Setting up your company in the Principality of Andorra
Day-to-day
assistance :
- Administrative and accounting support
- Support for a minimum of 24 months
- Our staff are bilingual
- Maximising your income
La Gestoria La Peguera :
More than just administrative assistance, we’re your partner for success in Andorra.
Don’t hesitate to contact us for a free, personalised consultation.
In Andorra
3 questions to ask yourself before setting up an offshore company
The Principality of Andorra, with a population of around 80,000, is fundamentally dependent on tourism. However, Andorra has been encouraging foreign investment for some years now. Although government approval is required to set up a foreign company, Andorra’s economy is booming and business opportunities abound.
Do you have to be resident in Andorra to set up an offshore company?
You do not need to be resident in Andorra. It is possible to set up a company in Andorra without being resident there. The structure established in the Principality will be subject to the same legal and tax framework as other Andorran companies.
How long does it take to set up an offshore company in Andorra?
Our Gestoria la Peguera business centre takes care of all the formalities with the Andorran government. Our staff are bilingual to ensure that all administrative formalities are followed through.
As a general rule, it takes between 4 and 8 weeks to set up an offshore company in Andorra.
Here are the main stages in the process:
- Choosing the legal form of your company
- Gathering the necessary documents
- Drafting your company’s articles of association
- Filing a request for authorisation with the Andorran government
- Obtain authorisation from the
- Andorran government
- Register your company in the
- Commercial Register
Opening a bank account
Is it legal to open an offshore company?
The Hague Convention of 1 June 1965 on the laws applicable to commercial companies and associations, simplified by Decree no. 92-521 of 16 June 1992, facilitates the creation and recognition of international companies. Signed by more than 60 countries, including most of Western Europe and North America, it makes it possible to legally set up a company in Andorra to take advantage of the advantageous local tax system.
To boost its economy and attract foreign investors, Andorra has introduced an attractive tax system for international companies. This system is characterised by a maximum corporate tax rate of 10%, no VAT and no tax on dividends, and double taxation agreements with a number of countries, including France, Spain and Portugal.
If you are thinking of setting up a company in Andorra, it is crucial to take into account the legal and tax obligations specific to the Principality, as well as those of your country of origin.
At Gestoria La Peguera, we are aware of the complexity of these obligations and we are here to help you.
Our team of experienced legal and tax professionals will provide you with personalised support to :
Understand the different legal forms of company and choose the one that best suits your project.
Complete all the administrative formalities involved in setting up your company.
Comply with the o
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