Quick answer — Andorran SL at a glance. Foreign founders need a foreign investment authorisation from the Andorran government before forming an SL, which requires minimum share capital of €3,000. Corporate tax is 10%, and personal income tax is capped at 10%, with the first €24,000 exempt. Many founders obtain active residency by running their own Andorran company, which requires real presence (at least 183 days a year) and contributions to the CASS social security system.
Andorra, a microstate between France and Spain, has become a magnet for entrepreneurs, content creators and remote founders who want low taxes without leaving Europe. Since opening to foreign investment and introducing direct taxes around 2012, it has kept rates low: 10% on company profits, 10% maximum on personal income, and a 4.5% indirect tax instead of VAT.
Andorra is not a place you can benefit from remotely. Its residency system is built around real presence, and the most common route for founders — active residency through your own business — means setting up an Andorran company, managing it locally and paying into its social security system. France and Spain also scrutinise departures to Andorra, so the move has to be genuine and well documented.
It does not suit nomads who want to keep travelling most of the year, or founders unwilling to make Andorra their real home. It is not designed for locally employed workers.
Comparing options outside the EU? See our guide to low-tax countries in Europe outside the EU.
For a higher-cost alpine alternative, compare the Swiss GmbH for high-net-worth founders. For a much lower rate with eligibility limits, see Georgia's 1% small business status.
Active residency allows you to live and work in Andorra. For founders, it is usually obtained as self-employed or as the owner-administrator of an Andorran company, with a significant shareholding and an active role. Conditions include:
Annual quotas and conditions are set by the government, so check them before applying.
Both countries look closely at residents who move to Andorra. Keep evidence of your Andorran home, days, family and economic ties, and plan any exit tax on shares. A move that leaves your family or business centre in France or Spain may not be recognised.
An Andorran SL must be genuinely managed in Andorra, with real premises and activity. This is essential both for your residency and for the company's position under the tax treaties Andorra has signed, including with France and Spain.
Amounts are indicative.
The overall burden is low, but CASS contributions, higher living costs and the need to really live in Andorra are part of the equation.
Andorran banks are well capitalised but conservative. Expect detailed KYC, proof of the source of funds and often an in-person meeting. The bank account is needed early to deposit share capital.
The Andorra Business Bank Comparison Guide compares the main Andorran banks for new SLs — get it when you plan your Andorran move with Heavnn.
Andorra's corporate income tax rate is 10%. Personal income tax is also capped at 10%, with the first €24,000 exempt.
Yes, with a foreign investment authorisation from the Andorran government. The minimum share capital for an SL is €3,000.
Yes. To benefit personally, you need residency, and active residency requires living there at least 183 days a year. Andorra is not suited to remote-only structures.
It is the residence status for people who work in Andorra, either employed or self-employed, including founders who run their own Andorran company. It requires real presence, a deposit, health insurance and CASS registration.
They may, if your family, home or economic interests remain there. Both countries scrutinise moves to Andorra; plan your exit carefully and keep evidence of your new life.
Andorra works when the company and your life are really there. Heavnn plans both before you apply.
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
