The system of rates and taxes of Andorra in order to create a company - PSF Consultoría empresarial

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The system of rates and taxes of Andorra in order to create a company

In Andorra, as we have said before, the general taxes are really low. For a resident, the sum of Personal Income Tax + Corporate Tax can be 5 times lower than in Spain, which can completely change the viability and profitability of a business project. But one thing that costs us sometimes to explain are the fees that have to be paid, mainly in the constitution of a society. No system is perfect and the tax system in Andorra is not the simplest in the world.


At the time of setting up the company, already included in the budget we make from PSF, there is always a fee charged by the Andorran government to open the company, of 1016.67€ together with a notary fee of  625.79€. The first one goes without IGI, but the second does include it. In addition, a reservation of name (company name) must be made at a cost of 5.36€ (irrelevant and even cheaper than in neighboring countries). For an operating company also incur some trade expenses of about 250€ which depend on a series of scales that should be analyzed separately. This has to be taken into account, because in the end conditions the final cost of the investment. Annually the government charges € 201 and the "comu" a smaller amount that depends on many factors and can range between 15€ and more than 600€ depending on the business, number of activities, existence or not of commercial place, location etc ...


On this it is important to know two details. First, all expenses are amortizable, so the final cost is less than it seems. Secondly, with a result of 20,000€ in annual benefit, the savings are already 3,000€ compared to neighboring countries at the Corporate Tax level and 3,150€ at the Personal Tax level if it had to be paid (with such a small turnover it is unlikely ). That is, the initial cost return can easily be recovered during the first year. In fact, currently, having a company in Andorra, during the first year are paid less social contributions than in Spain, so that return on the initial investment, being resident is trivial.

Foto de eFile989 CC BY


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