Company Why? Requirements

International trade company in Andorra

International commerce in AndorraAn international trading company in Andorra offers its investors a series of benefits thanks to its fiscal advantages and its strategic location.

International trade is a fundamental piece in the growth and improvement of the economy worldwide. Its main activities are based on the commercial opening between countries and the transportation of products internationally.

Establishing a company, and specifically an international trade company in Andorra, can bring many benefits, especially tax, to both the company and the entrepreneur. The Principality of Andorra is an independent, democratic and social nation, which offers its citizens a highly developed dynamic economy. What makes it a point of great attraction for domestic and foreign investment. In addition to having taxes in the country much lower than its neighbors France and Spain.

Why Andorra as an international trade base

Its strategic location allows it to have great communication channels and interaction with other important countries of the European continent. Such as France and Spain, which are its geographical neighbors, or Portugal, the United Kingdom and Germany, among others. This favors significantly an international trade company in Andorra.

In general, investment and financial management in this country are highly benefited, because this is one of the countries that has the lowest tax rates in Europe. For example, corporate income tax is set to a maximum of 10%, depending on the economic activity that develops, while in France or Spain it ranges between 15% and 43%. The personal income tax (PIT, or IRPF in Andorra) can vary between 5% and 10% in Andorra, being up to 52% in Spain or France. And the VAT or value added tax is 4.5%, compared to 8% in Switzerland, 20% in France, or 21% in Spain. It is, therefore, one of the lowest in the world.

Requirements for international commerce
These are the tax benefits that a company in Andorra about international trade provides to its partners or investors:

  • For foreign partners residing in another country, the PIT that must be taxed will be between 19% and 21% of the dividends obtained from that company.
  • For those partners considered residents in Andorra, the benefits obtained from the company doesn’t tax for the IRPF at all. Therefore, a person residing in this country will end up paying, adding all the established taxes, a little less than 5%. This is very attractive compared to the high rates that are taxed in countries like Holland, Spain or France.

Requirements for an international trade company

To establish an international trade company in Andorra, the businessmen must have an office or premises for the development of its commercial activity, with at least 20 m2 of extension. And it must employ at least one part-time person, who is not a partner or an investor. In addition, this space must have an electricity connection account in the name of the company, and a maintenance contract for a fire extinguisher within the space where the company develops. A partial solution to this requirement is the hiring of a virtual office.

Frequently asked questions about international trade

International trade companies base their economic activity on commercial opening to other countries and the movement of goods internationally.

Andorra has a geographically privileged site with quality infrastructure, all this makes it an ideal place to establish the headquarters of an international trade company.

  • Corporation taxes in Andorra are between 2% and up to 10% while in Spain and France it ranges between 15% and 43%
  • Income Tax in Andorra can vary between 5% and 10%, Spain and France can reach up to 52%.
  • VAT in the principality stands at 4.5% while in Spain it reaches up to 21% and in France 20%
  • Have an office of at least 20m2.
  • A part-time employee, who is not a partner or investor.
  • Register the office in the electricity company.
  • Maintenance contract for an office fire extinguisher.


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