How can I live legally in Andorra?
Before launching to create your own company, you should consider how you can get to live in Andorra if you are from Spain.
For that, you should know that here two types of residence are granted: active and passive.
It is designed for foreign citizens who intend to live and work in Andorra and can be obtained in two different ways.
Either working as an employee through a formal employment proposal by an Andorran employer or on your own, creating a company here or becoming a partner of an existing local business, being a member of the board of directors.
What is the price to acquire the active residence?
Processing the active residence itself, usually costs between 600 and 1,200 euros, in addition to the issued residence card (immigration).
This type of residence, however, is for foreign citizens who only want to live in Andorra.
In this case, it can be obtained by those who invest in the Principality or who are professionals of international projection, scientists, athletes or artists.
What is the price to acquire the passive residence?
The package of this type of residence includes residency procedures, notary and others. And its cost generally varies between 2,000 euros for a single person and 3,500 for, for example, a couple.
Depending on what your situation is, either of the two residences can serve your purpose of undertaking in Andorra.
What kind of company to create in Andorra if I am an entrepreneur or entrepreneur looking for tax opportunities?
Beyond what we have just told you about the type of residence you will need to live in Andorra, when setting up a company, you can select one of these options:
Corporation in Andorra
It is proposed for large businesses, since a minimum capital of 60,000 euros is needed to be able to constitute it.
If what you intend is to create your company individually, you can do it under the figure of sole trader.
Limited Liability Companies in Andorra
The second type is designed for small companies, since the capital to create it is only 3,000 euros.
And, as with the previous case, if you wanted to constitute this company individually, you can do it under the figure of the Single-Person Limited Company.
How to create a company in Andorra? Legal requirements of the Principality
In order to set up your company in the Principality, you will have to comply with a series of mandatory requirements.
- Application for reservation of company name.
- Creation of the company's statutes.
- Initial share capital deposit in an Andorran banking agency.
- Registration in the Mercantile Registry of Andorra.
- Formalization of the constitution of the company before a notary.
- Beginning of the economic activity of the company
Is it a good idea to set up a company in Andorra?
We think it is important to mention to you for whom it is a good idea to create a company in the Principality.
And, although we would love it to be for everyone, we believe that you should take into account these aspects
Creating a company in Andorra is a good option if:
- If you want to live here.
- If the administrator of your company lives and works from here, and you can thus create a business substrate in Andorra.
What are the advantages of entrepreneurship in Andorra?
If so many entrepreneurs, especially Spaniards, are interested in setting up their companies here, it is mainly due to the different advantages you can get once you settle here.
Some of them are:
- Low taxes.
- Excellent location.
Let´s see each one of them:
Low taxes in Andorra
It is well known that entrepreneurs from Spain and other parts of Europe come to Andorra precisely for its tax benefits.
What's more, we are sure that when you entered this article, you already intended to find this specific section.
Some examples that demonstrate the tax advantages compared to Spain, is that while in Spain the VAT is 21%, in Andorra it is only 4.5%.
In addition, if annually earnings less than or equal to 24,000 euros are recorded, the exemption in the IRPF can be up to 100%.
While the corporate tax is 2% and 10%.
Excellent location: a key point on the continent
Thanks to being located between Spain and France, Andorra has access to cities of great importance and renown such as Barcelona and Toulouse.
In addition, the taxation agreements signed with both countries allow entrepreneurs not to have to assume double taxation.
So not only can you plant yourself in two important cities in a matter of hours, but, at the level of exporting products with your company, all are advantages.
If after reading this article you consider that setting up a company or venture in Andorra is your future, we can make the process much easier.
We take care of helping you with the transfer, the paperwork and the procedures so that you only have to worry about two things: your happiness and your future.