AndorraCompany formation, tax and banking
A 10% flat tax in the Pyrenees, with a workable residency route if you run a business there.
Andorra company formation at a glance
Andorra isn't a classic offshore centre. Companies and residents pay 10% tax, company owners are filed with the government register, and Andorra exchanges tax information under CRS. Banking is with Andbank, Creand or MoraBanc, which want residency or a strong local connection and check thoroughly where your money came from. It works when you'll genuinely live there and run a real business from it.
Andorra charges 10% on both company and personal income, and residency costs a fraction of Monaco or Switzerland. For founders earning EUR 200k to EUR 2m a year who want a European base with a genuinely good quality of life, it's often the most sensible answer.
It's small and the requirements are real: you must spend at least 90 or 183 days there depending on the permit, make a deposit with the government, and have private health insurance. Banks are professional but conservative, and residents are genuinely expected to live there.
Why people choose Andorra
- 10% tax on both company and personal income
- The first EUR 24,000 of personal income isn't taxed
- No wealth, inheritance or gift tax
- Residency costs a fraction of Monaco or Switzerland
- SEPA payments to and from Europe work normally
Where Andorra fits
- Personal relocation
- Digital businesses
- Holding companies
Where Andorra fits in a structure
Typical role · Real operating base with residence
Andorra is where you live and where your business is run from. Under active residency you set up an Andorran company you work in and own at least 34% of; the company pays 10% and your personal tax rises to 10%. It relies on you genuinely living there, with a EUR 15,000 deposit with the government and 183 days a year in the country.
What it depends onResidents are genuinely expected to live there (183 days a year for active residency, 90 for passive with a EUR 600,000 investment), banks want residency or a strong local connection, and Andorra exchanges tax information under CRS.
A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.
Opening a bank account
Andbank, Creand (Crèdit Andorrà) and MoraBanc cover the market and are used to international residents. You need residency or a strong local connection to open an account, and they check thoroughly where your money came from. Payments to and from Europe work normally through SEPA.
How tax works here
10% company tax, with lower effective rates for qualifying international activity. Personal income tax rises to 10%, with the first EUR 24,000 tax-free. Gains on shareholdings under 25% held for more than ten years are tax-free. No wealth, inheritance or gift tax. Sales tax (IGI) is 4.5%, the lowest in Europe.
Real presence, and who can see the owners
Active residency means setting up a company you work in and own at least 34% of, plus a EUR 15,000 deposit with the government and 183 days a year there. Passive residency means 90 days a year there and investing EUR 600,000 in Andorran assets. Company owners are filed with the government register.
When to choose it
Choose Andorra when a founder wants European residency at 10% and will genuinely live there, when Monaco and Switzerland are out of proportion to their wealth, and when a real business can be based there.
You get a written comparison, not a sales pitch.
Every Andorra recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.
Considering Andorra? Get a written comparison first.
Answer six questions and our team will come back with a shortlist, rough costs and where you could bank.
Questions we hear on every Andorra intake.
- Active or passive residency in Andorra?
- Active residency suits people running a business from Andorra: 183 days there, own the company, EUR 15,000 deposit. Passive residency suits people living off income from elsewhere: 90 days there and a EUR 600,000 investment.
- Is Andorra in the EU or Schengen?
- Neither, though it uses the euro and has a customs union with the EU. Residents can travel within Schengen without a visa.
- Does Andorra exchange tax information?
- Yes. Andorra has taken part in the international automatic exchange of tax information (CRS) since 2018 and has a network of tax-information agreements.
- Can I open an Andorran bank account without living there?
- It's hard. Andbank, Creand and MoraBanc want residency or a strong local connection before they open an account, and they check thoroughly where your money came from. Once you're in, payments to and from Europe work normally through SEPA.
What we typically deliver in Andorra
Residency by Investment
Golden visas and residency in 13 countries — Portugal, the UAE, Malta, Greece and more.
StructuresCorporate Structuring
Groups of companies across several countries: holding companies, companies that own your IP, joint-venture companies, and moving a company to a new country.
BankingInternational Banking
Personal introductions to 25+ private and business banks that are actively taking clients — UK, EU, Gulf, Asia, Caribbean, US.
AdvisoryFamily Office Set-up
Designing single- and multi-family offices: who decides what, written rules, and how it runs day to day.
More Europe jurisdictions & related insights
United Kingdom
A respected base for trading companies, with the world's widest network of tax treaties.
Malta
An EU licence you can use across Europe for online gaming, funds and fintech.
Isle of Man
Aircraft, yacht and online gaming registrations under familiar British law.
Every engagement begins with a twenty-minute advisory call. The fee is in writing before any work begins. No hourly billing.