This small state in the heart of Europe offers a favorable tax regime for companies carrying out international activity.
The total income tax rate is 10% in Andorra. This rate can be reduced up to 2% providing the company meets certain conditions. In this case Andorran tax authorities shall confirm a reduced rate for the relevant company.
Companies are usually registered as SOCIETAT LIMITADA (or SL, SLU). Both the director and the owner of the company can be non-residents of Andorra.
The minimum paid-up capital for newly incorporated companies is 3000 EUR.
The capital shall be paid to a bank account. To open the account, it is necessary to come to Andorra.
The total process of company incorporation can take up to 3 months. During this period the company name is verified and the company shall obtain a foreign investment permit, pay the capital and register with the municipal authority.
Every company registered in Andorra is assigned a tax registration number (NRT).
This favorable tax regime in Andorra is achieved through high company support costs amounting to around 5000 EUR per year.
Bear in mind that companies registered in Andorra shall maintain accounting records and some of them shall get audited.