Andorra is at a pivotal moment for those seeking new business opportunities. Far from being just a tourist destination for skiing or shopping, the principality is changing. It has opened up to the world, professionalised its business environment and embraced sectors with a future.
From tech start-ups to health and luxury tourism projects, an ever-growing number of foreign investors and companies are discovering that Andorra is a place to innovate, grow and diversify their activities in an increasingly agile, modern and connected environment.
Below we analyse the main advantages that Andorra has to offer, the most promising sectors and the key steps to making a successful investment.
Table of contents:
- Sectors with the greatest growth potential in Andorra
Advantages for foreign investors
Recent developments in the Andorran regulatory environment
Practical steps for investing or opening a business in Andorra
Want to know how to take the first step?
Sectors with the greatest growth potential in Andorra
• Technology and innovation
Andorra is committed to digital transformation and technological innovation as pillars of its economic growth. The country encourages the creation of technology companies, start-ups and projects related to the provision of digital services. With this in mind, in 2022 the government adopted the Law governing the digital economy, entrepreneurship and innovation, entrepreneurship and innovation to regulate digital activities.
• Health and well-being
The population is becoming increasingly interested in health and well-being, making the health sector an area with great potential. From private clinics to medical tourism projects, Andorra is opening its doors to business models that focus on wellness and personalised care in an incomparable environment
• Tourism
Thanks to its well-established tourism model, Andorra welcomes around 8 million visitors a year, creating opportunities in the hotel, wellness and luxury tourism sectors. While snow tourism is one of the country’s traditional economic drivers, a more exclusive model has gained momentum in recent years. Luxury experiences, retreats and active tourism are becoming increasingly prominent. Business opportunities include unique accommodation, personalised activities and leisure-related services
• Sustainability and renewable energy
The energy revolution has also reached Andorra. The country is working to reduce its dependence on external sources and increase local production of clean energy, which is opening up opportunities for companies that specialise in efficiency, electromobility and renewable solutions.
Advantages for foreign investors
• Competitive taxation
Andorra has one of the most attractive tax regimes in Europe. Corporate tax is capped at a maximum of 10%, with exemptions and reductions available depending on the type of business activity. Personal income tax is also limited to a maximum of 10% and VAT is just 4.5%.
• Legal and political stability
The principality boasts a stable political environment and robust legal certainty. This allows investors to operate with foresight and confidence over the long term.
• Strategic location
Its strategic location means that Andorra is just a few hours from major economic hubs such as Barcelona and Toulouse. In addition, Andorra-La Seu airport increases the country’s connectivity with Madrid. While it is not a member of the EU, Andorra does have agreements with the European Union.
• Quality of life and natural surroundings
In addition to its business-friendly environment, Andorra also offers a high standard of living, safety, modern infrastructure and an exceptional natural setting, making it an attractive place to live and work.
Recent developments in the Andorran regulatory environment
Andorra continues to take decisive steps to position itself as a modern, competitive business destination that is aligned with international standards. Recent reforms aim not only to facilitate foreign investment, but also to establish a more transparent regulatory environment.
Some of the most notable developments include:
• An increase in double taxation treaties (DTAs)
In February 2025, Andorra signed a new double taxation agreement with the United Kingdom, bringing the total number of such agreements to 21, among which are countries such as Spain, France and Portugal. These agreements prevent double taxation on income and assets, facilitating international investment and further strengthening Andorra’s position as a fiscally transparent country.
• Efficiency-oriented tax reforms
In recent years, improvements have been made to the tax administration, allowing companies to operate with greater fiscal flexibility. These reforms are aimed at optimising procedures with the administration
• Boosting equality and corporate social responsibility
The entry into force of the Law on Equal Treatment and Opportunities for Women and Men requires companies to submit equality plans and gender pay gap records.
Impact:
These reforms underscore Andorra’s commitment to a modern and balanced regulatory environment, benefitting both domestic businesses and international investors seeking a clear regulatory framework that is socially responsible and aligned with European standards.
Practical steps for investing or opening a business in Andorra
• Applying for foreign investment
The first step for non-resident investors wishing to hold shares in the company (more than 10% of the capital) is to apply for a Foreign Direct Investment Permit from the Andorran Government.
• Reserving the company name
Once the investment permit has been obtained, the company name must be reserved to ensure its availability during the incorporation process.
• Deed of incorporation before a notary
With the authorisation and name reservation taken care of, an appointment must be made with an Andorran notary to sign the company’s deed of incorporation.
• Inclusion in the Register of Companies
The Register of Companies will classify and register the company. At this point, the company will be assigned an Administrative Identification Number (AIN), similar to the CRN in other countries.
• Obtaining a business licence and registering the activity
Once the company has been registered, it is necessary to apply for a business licence at the relevant Comú (town hall). This licence allows the business to legally start operating.
• Tax and labour formalities
Finally, the company must be registered with the Tributs i Fronteres department and the employees (if any) must be registered with CASS (Andorran Social Security).
Want to know how to take the first step?
Andorra is a country in the midst of transition, opening its doors to international investment in strategic sectors with a vision for the future. If you’re looking for new opportunities to expand or launch a project, our team can help you understand the current regulations and guide you through the whole implementation process.
Contact us to find out how yourinvestment in Andorra can become a reality.