News & Insights

Companies in Andorra must comply with tax obligations such as the Corporate Tax (10%) and IGI (4.5%), depending on their revenue volume. They must also manage monthly social security contributions (22% of gross salary). They are required to submit annual accounts and keep documentation for 6 years. Large companies must audit their accounts. Non-compliance can result in fines of up to €6,000.

Andorra has emerged as a compelling destination for foreign investors due to its competitive tax regime and economic stability. However, establishing a company in Andorra requires meticulous planning to ensure economically justified structures that align with international tax transparency standards

A power of attorney in Andorra is a legal document by which a person authorizes an agent to act on their behalf in certain legal matters. In Andorra, governed by civil law, the formalities for granting powers are strict, especially for acts of disposition. This differs from the common law system and is crucial in international transactions to avoid legal risks arising from powers granted without complying with formal requirements, which could allow unauthorized acts harming the parties involved.

Planning succession in Andorra is essential to protect your assets and ensure family peace of mind. A well-drafted will allows for the distribution of assets in accordance with local regulations, including forced heirship rules. Whether you are a resident or not, having a tailored will helps avoid legal disputes and ensures an orderly transfer. This guide explains the validity requirements of an Andorran will, its types, tax implications, and practical aspects, with special focus on non-residents and the prevention of international litigation.

In a context of growing interest in favorable tax jurisdictions—especially among digital professionals and mobile entrepreneurs—Andorra’s tax system has become a subject of public discussion. In her article published in Cinco Días, Carlota Pastora offers a detailed analysis of the legal implications of establishing tax residency in Andorra, debunking simplified ideas about fast-track relocations and emphasizing the importance of coherent and lawful planning.

On February 20, 2025, the United Kingdom and Andorra signed a Double Taxation Convention (DTC), a key milestone aimed at facilitating investment and economic exchanges between the two countries.

The treaty aims to prevent double taxation of the same income in Andorra and the United Kingdom by determining, for each category of income, which of the two States has the taxing rights over it.