Invest in Andorra

Why invest in Andorra?

The Principality of Andorra is a sovereign country located between Spain and France, known for its natural beauty and advantageous tax system. It offers a favourable environment for freedom of investment and has approved regulations that provide legal certainty to investment holders.
Andorra stands out on the international scene as an attractive destination for investors seeking to diversify their portfolios. Its favourable tax system, which includes low taxes and tax advantages, creates an environment conducive to maximising profits and minimising the tax burden.
In addition, Andorra has a sound financial system and a collaborative administration that encourages investment and provides legal certainty. The country has modernised its legal and regulatory framework to meet international standards, providing confidence to investors.
The quality of life in Andorra is exceptional, with modern infrastructure, high quality services and a secure environment. The country offers an environment conducive to personal and family well-being, with access to quality education and a first class health care system.
In addition to its economic attractiveness and quality of life, Andorra stands out for its natural beauty. Surrounded by stunning mountains and captivating landscapes, the country offers numerous opportunities to enjoy outdoor activities such as hiking, skiing and cycling.
In short, investing in Andorra offers numerous advantages, from its advantageous tax system and legal security, to its exceptional quality of life and stunning natural environment. These characteristics make Andorra an attractive destination for those seeking investment opportunities and an exceptional place to live and enjoy a high quality of life.

Advantages of investing in Andorra

1. Attractive Tax Framework

Andorra is internationally recognised for its attractive tax framework, which offers numerous advantages for investors. The country has established a tax system that encourages investment and economic activity, with moderate taxes and a low tax burden.
One of the main advantages of the Andorran tax framework is that corporate, personal income and non-resident income taxes are kept below 10%. This low tax burden creates a favourable business environment, allowing companies to maximise their profits and minimise their tax burden. In addition, the general indirect tax in Andorra stands at an attractive 4.5%, which contributes to a more competitive business environment.
Compared to other countries, Andorra offers favourable tax treatment for investments. The absence of wealth tax, inheritance and gift tax and the fact that no withholding tax is levied on dividends distributed by Andorran companies make Andorra a top-tier destination for both legal entities and individuals.
In addition to moderate taxation, Andorra has a transparent and well-regulated tax system. The country has implemented standardised rules that guarantee legal certainty for investment holders. This stability and clarity in the tax framework gives investors’ confidence and allows them to plan their long-term investments with greater certainty.

2. Quality of life in Andorra

Andorra, one of the smallest countries in the world in terms of territory and population, offers an exceptional quality of life that attracts residents and potential investors. This enclave, located between member countries of the European Union, enjoys a long history of peace and political stability that spans more than 800 years, making it an optimal destination for secure investments.
As a member of the United Nations since 1993, Andorra is currently in the process of negotiating an association agreement with the European Union, demonstrating its commitment to international cooperation and its interest in strengthening its ties with the international community.
Andorra stands out as the country with the fifth highest life expectancy, reflecting the attention paid to the health and well-being of its citizens. This achievement is supported by the country's excellent air quality on 91% of days, as well as the 2,000 hours of sunshine per year.

3. Political Stability

Andorra stands out for its political stability and consolidated democratic system. The country is a Principality with a parliamentary form of government and a political system based on the respect for fundamental rights and individual freedoms. Andorra's political stability is a key factor for investors, as it provides a secure and reliable environment in which to conduct business. Continuity in public policies, protection of property rights and effective law enforcement are fundamental pillars that support investment and foster business confidence. Furthermore, Andorra has established diplomatic relations and cooperation agreements with numerous countries, which strengthens its position in the international arena and promotes collaboration in areas such as trade, investment and cultural exchange.

4. Andorran society

Andorran society is known for its welcome and tolerance towards people of more than 100 nationalities and various religions, which creates a multicultural and diverse environment. The peaceful coexistence of its inhabitants is a fundamental value of the country. The country is home to a diverse population composed of local citizens and foreign residents. Foreigners who decide to invest in Andorra are welcome and find an environment conducive to settling and integrating into the local society.

5. Education in Andorra

Andorra has a high-quality education system that is adapted to international standards. Schools in Andorra offer bilingual educational programmes, where classes are taught in Catalan and French, Catalan being the official language of the country. In addition, there is the option of studying English as a foreign language. Education in Andorra is characterised by its personalised approach and the promotion of key skills such as critical thinking, creativity and language proficiency. In addition, Andorra is home to the Universitat d'Andorra, which offers academic programmes in various fields of study, providing opportunities for higher education.


6. Health care in Andorra

The health care system in Andorra stands out for its quality and accessibility. The country has modern hospitals equipped with state-of-the-art technology and highly trained professionals. Residents and investors in Andorra have access to a wide range of medical services, from primary to specialised care. In addition, Andorra has established collaboration agreements with internationally renowned medical centres, allowing patients to access specialised treatment without having to leave the country.

7. Andorra's connectivity

Despite its geographical location in the Pyrenees, Andorra has excellent land and air connectivity. The country has a modern road network that makes it easy to travel to nearby cities in Spain and France. In addition, Andorra is within reasonable distance of international airports such as Barcelona airport, Toulouse airport and Girona airport, which facilitates business travel and connections to other international destinations.

8. Electricity, Technology and Internet

Andorra stands out for its electricity, technology and Internet infrastructure, offering its residents and businesses an advanced and connected environment. The cost of electricity in Andorra is highly competitive, ranking as the second cheapest in Europe. Access to reliable and competitively priced electricity is a key factor for sustainability and economic development.
In terms of technology and internet connectivity, Andorra is at the forefront. The country has made significant investments in digital infrastructure, which is reflected in the high quality and speed of connection offered. 94.5% of homes in Andorra are connected to the Internet via fibre optics, which guarantees a stable and high-speed connection. The average speed exceeds 300 Mbps, allowing residents and businesses to enjoy smooth surfing, fast downloads and uninterrupted access to online services.
The combination of competitive electricity costs, advanced digital infrastructure and high internet connectivity via fibre optics and mobile devices make Andorra an environment conducive to innovation, entrepreneurship and technological development.

9. Nature

Andorra is a true natural paradise, with a breath-taking mountainous environment that attracts nature lovers and outdoor sports enthusiasts. The country offers a wide variety of activities during all seasons of the year. In winter, Andorra is known for its internationally renowned ski resorts, with well-maintained slopes and modern facilities. In spring and summer, activities such as hiking, climbing, cycling and nature walks are available. Crystal clear lakes, green valleys and picturesque landscapes make Andorra an ideal destination for those seeking a healthy lifestyle in harmony with nature.

10. Andorra's economy

Andorra's economy is characterised by its solidity, stability and sustained growth in recent years. With economic diversification underway and attractive investment opportunities, the country offers a favourable environment to ensure the profitability of investments.
A relevant indicator of Andorra's economic success is its nominal GDP per capita, which amounts to 35,995 euros, exceeding the European Union average. This figure reflects the level of development and economic well-being of the Andorran population. Moreover, the unemployment rate in the country is one of the lowest in Europe, at an impressive 1.7%. This low unemployment rate demonstrates the strength of the labour market in Andorra and the existence of employment opportunities for residents and potential investors.
The Andorran economy is in a process of diversification, promoting sectors such as finance, technology, health and wellness, luxury tourism and e-commerce. These areas offer investment opportunities in emerging and high-potential industries, allowing investors to take advantage of the country's dynamism and economic growth.

11. Financial system

Andorra has a sound and well-regulated financial system. The country has modernised its legal and regulatory framework to meet international financial standards. Strict measures against money laundering and tax evasion have been put in place, providing transparency and security for investors. Andorra has a variety of financial institutions, including banks and asset managers, offering a wide range of financial services tailored to the needs of investors.

12. Foreign investment in Andorra

Andorra has shown a growing interest in attracting foreign investment. The country has implemented policies and measures to facilitate the investment process, including the simplification of bureaucratic procedures and the creation of a favourable legal framework.
Andorra has experienced a remarkable growth in foreign investment since the beginning of its economic opening process. In less than a decade, foreign investment has increased by approximately 500%, generating new opportunities in various sectors.
As a sign of its commitment to international cooperation, Andorra has established double taxation avoidance agreements with several countries, including Spain, France, the United Arab Emirates, Liechtenstein, Luxembourg, Malta, Portugal, Cyprus, San Marino, Hungary, the Czech Republic, the Netherlands, Croatia, Monaco, South Korea, Iceland and Belgium. These agreements provide security and tax benefits for international investors.
With approximately 8 million visitors per year, Andorra is a popular tourist destination that attracts a large number of people, creating a favourable environment for investment and economic growth.

FAQ about Investing in Andorra


Why invest in Andorra?

Andorra is a country with a stable economy, a low tax rate and a wide range of investment opportunities in different sectors. In addition, its strategic location in the centre of Europe makes it an attractive place to invest.

What are the most interesting sectors to invest in Andorra?

Andorra offers investment opportunities in sectors such as tourism, technology, construction and financial services.

What are the tax advantages of investing in Andorra?

Andorra offers a corporate tax rate of 10%, one of the lowest in Europe. In addition, the country has double taxation agreements with several countries, which reduces the tax burden for foreign investors.

What kind of support does the Andorran government offer to foreign investors?

The Andorran government offers support to foreign investors in the form of legal and financial advice, as well as in identifying investment opportunities and finding local partners.

What is the standard of living in Andorra?

Andorra has a high standard of living, with a wide range of services and a good quality of life in general. However, living costs can be higher than in other countries in the region.

What is the climate like in Andorra?

Andorra has a high mountain climate, with cold winters and mild summers. Winters can be very snowy, making the country a popular winter sports destination.

What are the best cities to invest in Andorra?

Andorra la Vieja is the country's capital and economic and financial centre. Other important cities are Escaldes-Engordany and San Julià de Lòria, which also offer interesting investment opportunities. If you need more information, our team of experts in financial advice and management will help you. We offer a wide range of services, from asset management to financial planning and tax advice.