Andorra offers a favourable fiscal environment for both individuals and foreign investors, with its corporate tax rate of 10%, personal income tax cap of 10%, and no wealth or inheritance tax. However, it should be remembered that every country has its own specific procedures, deadlines and documentary requirements. People coming from abroad may be surprised to see the way in which a company is structured, how administrative identification is requested, and the nature of the documents that the administration requires. It is therefore advisable to engage the services of a fiscal advisor who is based in Andorra, and who will be able to provide comprehensive guidance throughout the entire process.
Table of contents:
- Advice from the outset
How to avoid mistakes in the initial planning
Reducing fiscal risks is also a strategic decision
Focus on what is important and enjoy complete peace of mind
Settling in Andorra as a ‘digital entrepreneur’
What does a fiscal advisor in Andorra do?
How to choose a fiscal advisor in Andorra
Long-term fiscal planning
A decision that makes a difference
Advice from the outset
Whether you want to transfer your residence or set up a company, the initial steps are crucial. Do you fulfil the requirements for active or passive residence? What taxes are payable in Andorra? Which corporate form is best for your business? A fiscal advisor in Andorra will analyse your case and show you the most efficient way forward, taking into account Andorran regulations and international treaties — which are particularly important if you retain links with your country of origin. Andorra has signed double taxation agreements with 21 countries, including Spain, France, Portugal and the United Kingdom — the countries from which most foreign investors originate. These agreements are important for fiscal co-ordination, especially for people who have businesses abroad.
How to avoid mistakes in the initial planning
Many investors come to Andorra from countries with very different regulations. Understanding how fiscal laws are co-ordinated between countries is not easy. Inadequately planned relocation can result in the payment of higher taxes than are required, or even in double taxation. The same applies to setting up a company in Andorra without first familiarising yourself with that country’s specific fiscal conditions. In addition, administrative formalities can also have fiscal implications. For example, an incorrectly completed form, a form submitted at the wrong time or the omission of an important document can block an application or affect your fiscal regime. Engaging a fiscal advisor in Andorra can protect you against these risks by helping you to anticipate possible administrative errors or omissions, optimise your fiscal structure from the outset, and avoid inaccuracies that could lead to penalties.
Reducing fiscal risks is also a strategic decision
In an increasingly regulated world, fiscal errors can have economic, legal and reputational consequences. Incorrectly using corporate structures, omitting relevant information, or incorrectly declaring income can put your project at risk. Thanks to their technical expertise and knowledge of current legislation, fiscal advisors in Andorra can minimise these risks.
Focus on what is important and enjoy complete peace of mind
Delegating fiscal management can help you to optimise your fiscal situation and provide peace of mind. The greatest benefit is that it gives you time to focus on other things, such as your business’s core activities or the practical aspects of your relocation while a company of specialised professionals attends to everything else. A fiscal advisor in Andorra will anticipate deadlines, keep you informed, and help you avoid any unpleasant surprises. This peace of mind, particularly if you are arriving from abroad, enables you to move forward and make decisions with confidence.
Settling in Andorra as a ‘digital entrepreneur’
Many of Andorra’s new residents work in technology or the digital sector. They include freelancers, YouTubers, digital investors and software companies. An experienced Andorran fiscal advisor can help you structure your activity correctly, avoid conflicts with your country of origin, and adapt to the local framework while continuing to operate internationally.
What does a fiscal advisor in Andorra do?
A fiscal advisor is responsible for calculating and preparing your personal and business tax returns in Andorra. They ensure that all fiscal procedures comply with Andorran public administration regulations. At Advantia Assessors, we offer a service that complies with regulations and anticipates opportunities while avoiding common mistakes when obtaining a residence permit or setting up a company in Andorra. Our work is essential in facilitating your relocation or the start-up of your project in a safe and efficient manner. For new clients, this service may include studying the start-up of business activities and analysing and considering possible subsidies, reductions or aid linked to economic activity. We also provide continuous monitoring of your business’s evolution in order to define the best fiscal strategies available within the Andorran legal framework at each stage.
How to choose a fiscal advisor in Andorra
In addition to technical knowledge, an established Andorran advisor gives you the advantage of understanding how the local environment works. They know how relations with the administration are managed, what legislative changes are on the horizon, and what common mistakes are made. Ensure that they know about any recent changes in the law, have experience with foreign investors, and offer services in the fiscal, legal, accounting, and administrative fields. Good co-ordination between these areas is important for the success of a project or relocation. This practical, real-world vision is what makes the difference between success and failure.
Long-term fiscal planning
Obtaining fiscal advice should be viewed as a long-term strategy, not a “one-off” management decision. Your needs will change over time; for example, you may acquire a property, expand your business, inherit an estate, or diversify your investments. Having a fiscal advisor in Andorra from the outset ensures that all of these decisions are made with your overall situation in mind.
Long-term fiscal planning
A decision that makes a difference
Moving to or investing in Andorra is an excellent decision if you are looking for a stable and fiscally competitive environment offering a high quality of life. However, as with any important decision, it is crucial to get it right from the outset. Having a fiscal advisor in Andorra will help you to avoid mistakes, protect your investment and build a safe fiscal situation for the future. At Advantia Assessors, we have been supporting clients like yourself since 2009. We know the terrain, we understand the regulations, and we are here to guide you every step of the way. Contact us today to take the first step with confidence and a long-term vision