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Can you have a company in Andorra and not be a resident of the country?

2020-03-27

Create company for non residents in andorra

Many entrepreneurs and entrepreneurs want to establish their companies in Andorra , however, that decision creates many doubts.

Is it possible to have a business in a different country than the one where you reside? It is the great question of the great majority; And the answer is yes.

Andorra, the favorite destination for entrepreneurs

Andorra is a very attractive principality for the world, not only for being a beautiful place surrounded by mountains, but for being a place where taxes are lower compared to other countries of the European Union. If the businessman wants to locate his company in Andorra for this sole reason, it is not so simple.

It is no secret to anyone that other countries such as Spain, Portugal or France have very high taxes; and it is a strong reason for many companies to want to emigrate, aiming to enjoy Andorra’s tax advantages .

By having a company in the Principality, it would pay taxes and would be under Andorran law. The owner, who would continue in his country, would be subject to the regulations, laws and taxes of the place where he lives. For this reason, it is not illegal.

Company in Andorra, but without living there

Although it is not an illegal thing to have a company in the Principality of Andorra and not live there, it is important to take into account the following:

  • If a person wants to have his company in Andorra, but does not reside there, he must ask for an authorization. This is a foreign investment authorization.
  • The company must have a physical office in Andorra, but not only that, it must also have an employee (minimum); and this person must be registered in the country’s Social Security.
  • A bank account must be opened in the country.

They seem not to be such complicated requirements to achieve, but what many recommend is that not only the company be in the Principality; but the owner also has his residence in the same place; or who resides in Andorra more than 183 days to be considered an active resident . In this way, the requirements could decrease to establish the company in Andorra; and both the company and the entrepreneur would enjoy greater benefits.

If the businessman also wants to pay less taxes as a natural person, it would be interesting to consider residence in Andorra. If the net income does not exceed 24 thousand euros, no taxes are paid; above this amount a 5% will be applied and from the 40 thousand euros a 10% tax will be applied, among other advantages.

Advantages of having residence in Andorra

Andorra is one of the most sought after places to live. It is an ideal option for many benefits. In this sense, the entrepreneurs who have their company in Andorra must know what those advantages are; so that they also move their residence to the country. In this case, the employer can request one of the types of residence that Andorra has.

Some advantages of living in Andorra are:

  • The standard of living that the Principality offers is very high.
  • A very safe place to live.
  • Low taxes, compared to other countries in Europe.
  • The principality is surrounded by nature and beauty.
  • They offer a wide variety of leisure activities suitable for everyone.
  • It has basic quality services.
  • The Andorran health service is optimal and efficient.
  • It is located in a strategic place.

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19-03-2020

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