The country remains a magnet for professionals, investors, and companies seeking a more efficient international structure.
Andorra Residency and Company Formation – Preparing for 2026
As we approach 2026, many people are already evaluating whether to initiate a residency process or set up a company in Andorra. Planning ahead is key: it helps avoid administrative delays, minimize tax risks and start the new year with a clearly defined structure.
Below, we break down what to prepare, the opportunities Andorra offers, and how to build a secure, well-structured plan for 2026.
1. Tax Residency in Andorra: What It Involves and Why Early Planning Matters for 2026
Obtaining residency in Andorra is more than a change of country — it requires redesigning your tax position, reviewing your professional activity and aligning your global asset structure.
The two main pathways are:
✔ Active Residency
Designed for professionals who work in Andorra or manage an Andorran company.
Typical requirements include:
Running a business activity or holding a management position.
Enrollment in the Andorran social security system (CASS).
Effective presence in the country.
✔ Passive Residency
Aimed at international profiles and investors.
Key requirements:
A minimum investment of €600,000 in Andorran assets.
At least 90 days of physical presence per year.
Proof of sufficient financial means.
Why prepare your residency before 2026?
To avoid double-residency conflicts with your current country.
To coordinate family, schooling and logistical aspects in advance.
To adjust your personal or corporate structure before the move.
To prevent delays during high-demand periods at the start of the year.
Planning ahead allows you to begin 2026 with a clean fiscal position and full regulatory clarity.
2. Setting Up a Company in Andorra: Practical Advantages for 2026
Creating a company in Andorra is a strategic move both for new ventures and for businesses seeking a stable, tax-efficient jurisdiction.
Key advantages
Corporate tax rate of 10%.
No wealth tax.
No inheritance or gift tax.
Fast, predictable administrative processes.
Core requirements
Minimum share capital of €3,000.
Registered address in Andorra.
Foreign investment approval when applicable.
A resident director in certain structures.
Why start the process ahead of 2026?
To have the company fully operational before year-end closing.
To optimize revenue and expenses for your first fiscal year.
To allow enough time for banking compliance and permits.
To consolidate a global tax strategy if you operate across multiple jurisdictions.
Many clients combine Andorra with Dubai, Barcelona or the US, depending on their markets, assets or business model.
3. Tax and Asset Structuring: The Foundation of a Strong 2026 Strategy
Beyond paperwork, it’s essential to evaluate whether your current personal and corporate structure fits your long-term goals.
Key areas to review:
How international income is organized.
Participation in companies outside Andorra.
Management of real estate and financial assets.
Dividend policy and profit distribution planning.
Exposure to double-taxation risks.
A well-built structure offers tax efficiency, legal protection and long-term stability.
4. How to Approach the Process with Confidence
To prepare effectively for 2026, we recommend a structured advisory process:
1. Initial Assessment
Review of your current residency, tax obligations, business activity, assets and objectives.
2. Defining the Optimal Structure
Active or passive residency?
Andorran company?
Hybrid structure involving Dubai, Barcelona or the US?
3. Coordinating Documentation and Procedures
Permits, banking setup, certifications, apostilles and administrative coordination.
4. Execution and Ongoing Support
Continuous guidance to ensure compliance and avoid mistakes during the transition.
2026 may be a pivotal year for professionals and businesses looking to optimize their tax structure, strengthen legal certainty and build a more resilient international setup. The key is timing: analyze, plan and execute with enough margin.
At PSF we accompany you in this process in a personalized, rigorous and adapted way to each profile.
If you want to prepare your strategy for 2026, we will be happy to help you. Contact us through the form or write to us at info@psf.ad