Frequently asked question!

The total cost of an employee is not limited to their net salary. In Andorra, social contributions must be added: 6.5% paid by the employee and 15.5% paid by the employer. With these figures, you can calculate the real cost of each hire, or use our calculator to do it automatically.

🔽 Example calculation:

If an employee earns €1,800 net, their gross salary will be €1,925. The company must then add its 15.5% share (€298). The total monthly cost is therefore approximately €2,223.

Social contributions are lower than in Spain, Italy, or France, and the overall tax burden is lighter. This allows companies to offer competitive salaries without excessively increasing labor costs.

We manage a wide range of formalities with the Andorran administration, including:

• Installment plans or deferrals of debts with the CASS or the Agència Tributària d’Andorra.
• Validation (homologation) of university degrees to work in the country.
• Recognition of foreign driving licenses.
• Applications for business or commercial activity licenses.
• Updates to company bylaws or board meeting minutes.
• Management of permits, certificates, or notarial documentation.

The incorporation process usually takes between 3 and 6 weeks. It includes several steps: company name reservation, drafting of bylaws, opening a bank account for share capital, registration as a self-employed worker, and obtaining the NRT (Tax Registration Number).

Once the company is registered, you must have an authorized activity and suitable premises for your business type, as every company must have an official domicile in the country. This phase can take 1 to 3 months, depending on the industry and specific requirements.

There are two main legal structures in Andorra:

• Limited Liability Company (SL): the most common choice for entrepreneurs, SMEs, and self-employed professionals. Minimum capital €3,000; flexible and accessible. Shareholders’ liability is limited to the capital contributed.
• Public Limited Company (SA): designed for larger projects or multiple shareholders. Requires a minimum capital of €60,000, to be deposited in an Andorran bank before incorporation. More formal, ideal for high-volume businesses or those seeking investors.

Both can be established as single-member entities - SLU or SAU - allowing one person to be sole shareholder and administrator. Foreign ownership is allowed up to 100%, subject to foreign investment authorization, which is mandatory for non-residents opening a company in Andorra.

Generally: criminal record certificate with apostille, notarized passport copy, CV, business plan, articles of association, and, when applicable, powers of attorney and commercial certificates.

The housing market is competitive, but we know the local supply and have direct contacts. We help you find suitable options and formalize legally compliant contracts without complications.

Yes, but your tax residence will remain in your home country unless you live in Andorra for at least 183 days per year or move your economic center of interests there. The company will pay taxes in Andorra, but you will still be subject to personal income tax in your home country unless you change your tax residency in accordance with the law.

Andorra offers a high quality of life: it’s safe, peaceful, and surrounded by nature, with clean air and a slower pace. The climate is mountainous, with cold, snowy winters (ideal for skiing enthusiasts) and mild, sunny summers - typically over 300 days of sunshine per year.

Naturally, living in the mountains comes with some challenges: winters can be long, roads can be snowy, and housing may be expensive or limited in certain areas. However, those who choose Andorra do so for its safety, natural setting, and balance - where quality of life far outweighs the minor inconveniences of the climate or altitude.

The main taxes are:

• Corporate Income Tax (max. 10%), with reductions for technological investments, job creation, or sponsorship activities.
• IGI (equivalent to VAT, 4.5%).
• Personal Income Tax (IRPF), applied to earnings above €24,000.

Dividends distributed by Andorran companies may be tax-exempt for fiscal residents of Andorra under current legislation. There are no wealth or inheritance taxes.

It depends on the company’s type and size. Typically, IGI returns are filed quarterly or semiannually (only large companies must do it monthly). Corporate Tax returns are filed once a year.

Every company must keep updated accounting records, store invoices for six years, and submit annual financial statements and reports to the Company Register.

IGI paid on purchases can be deducted, provided that the invoices are correctly recorded and directly related to the company’s business activity.