Andorra: Offshore Jurisdiction or Not

Is Andorra an offshore jurisdiction?

The principality was long called an offshore jurisdiction. Corporate income tax is governed by Law 95/2010, and its Article 41 sets a general rate of 10%. That is low by European standards, but the tax is real, and the return is filed locally.

In practice, then, “opening an offshore company in Andorra” means registering an Andorran company with an office, management and operations in the principality. For a remote business with no local presence, this option is almost always more expensive and more complicated than the alternatives.

In the conclusions of the Council of the EU of October 9, 2026, the principality appears neither on the list of non-cooperative jurisdictions (Annex I) nor on the list of jurisdictions with pending commitments (Annex II).

Key facts about a company in Andorra

Who Andorra suits

• entrepreneurs who are relocating to Andorra and moving the management of their business there;
• service and digital businesses with a team or an office in the principality;
• trade and tourism aimed at the local market.

For those who need a structure without relocating, we usually suggest comparing a UK Ltd, an Austrian GmbH or island jurisdictions from our list of offshore jurisdictions. European alternatives are covered in Estonia vs Cyprus.

When Andorra is a poor fit

• a remote business managed from another country that only needs an address;
• a vehicle for passively holding assets with no staff or office in the principality;
• projects that need a company within a week: the investment authorisation, the bank, the notary and the Comú come one after another.

In these cases we price the options from our guide to choosing a jurisdiction side by side, together with shelf companies in other countries.

Offshore company formation in Andorra: the steps

The principality’s government describes incorporation as a sequence of steps. We handle them on the client’s behalf:

1. NIA: the administrative identification number for a non-resident founder.
2. Name reservation: three name options, the business activity and the legal form (SL, SLU, SA or SAU) are submitted.
3. Foreign investment authorisation from the Registre d’Inversions Estrangeres once the name is approved: the non-resident foreign founder obtains it, and the positive decision is presented to the notary.
4. Share capital is paid into an account at an Andorran bank, which issues a certificate of deposit. The minimum is EUR 3,000 for an SL and EUR 60,000 for an SA.
5. Notarial deed of incorporation. The notary receives the members’ KYC, the name and investment decisions, the bank certificate and the form on the ultimate beneficial owners. The registered address must be in Andorra.

For the investment authorisation, an application is filed on the government form (V6T001-D) with the founder’s documents. The list of documents and translations depends on whether the founder is an individual or a legal entity.

Starting operations: obertura de comerç

After incorporation, the company opens its commercial activity at the commune (Comú) of the parish where the business will operate. First the trade name (nom comercial) is reserved, and then an opening application is filed with the same Comú, together with the name certificate and the documents listed on the form. The activities in the application must match the objects in the articles of association; if the articles do not cover them, they are amended first. Expanding the activity, moving premises, a change of owner and closing a business location are also handled through the Comú and entered in the Registre de Comerç i Indústria.

Documents and KYC

For the founders, the package usually includes a passport, proof of address, beneficial ownership information, a description of the planned business and documents on the source of funds. Andorran banks, notaries and government bodies look at the project’s connection with the principality’s economy, so it helps to prepare a business plan and details of the office and staff from the start.

Annual obligations

An Andorran company keeps accounts, files a corporate income tax return and meets the licensing requirements of its chosen activity. The scope of obligations depends on the industry and on whether there are employees, so we draw up the calendar for the specific business.

We plan changes to the structure separately: new members, a capital increase or a change of activity. For a foreign member such steps may also require an application to the Registre d’Inversions Estrangeres, so they are best agreed before the transaction. We take care of reporting, licence renewals and liaison with the local accountant as part of our company maintenance service.

Beneficial owners and the bank account

A local bank checks the beneficial owners, the source of funds and whether the transactions are genuine. For services, contracts, a website and a client profile help; for trading, supplier agreements and the routes of the goods. We handle bank preparation as part of our bank account for a company service. The documents on a company and its owners that banks ask for most often are collected in our guide on corporate KYC documents.

Andorra and the European Union: the euro, customs, data exchange

Andorra remains outside the European Union and is linked to it by separate agreements. The monetary agreement signed on June 30, 2011 made the euro the principality’s official currency. Under it, Andorra applies EU rules on protecting the euro against counterfeiting, on banknotes and coins, on anti-money laundering and part of the banking and financial regulation. For a company this means settling in euros with no currency conversion.

The 1990 agreement created a customs union with the EU for industrial goods, chapters 25–97 of the Harmonised System. Agricultural goods in chapters 1–24 are outside the union: Andorran products in these chapters enter the EU duty-free under a separate rule. For a trading company we check the product code before building logistics through the principality.

Since 2018 Andorra has automatically exchanged financial account information under the CRS standard: in the first round it sent data for 2017 to 39 partners, and in 2025 to 77. Information on non-residents’ accounts at Andorran banks, including the controlling persons of certain companies, goes to their country of residence if that country takes part in the exchange. More in our article on CRS in 2026.

The owner’s taxes and residence permit

Besides corporate income tax, an Andorran company deals with the IGI indirect tax. The general rate is 4.5%; there is a special rate of 2.5%, a reduced rate of 1%, a zero rate and an increased rate of 9.5% for banking and financial services.

Company registration and a residence permit in Andorra follow separate procedures. If the owner remains tax resident in another country, the company’s profit may be taxed there under CFC rules. We draw up the plan for the structure, residence and taxes together, before any documents are filed.

Andorra is on the list of states (territories) approved by Ukraine’s Cabinet of Ministers for transfer pricing: Resolution No. 1045 of December 27, 2017, with the annex as amended by Resolution No. 1505 of December 27, 2024. For a Ukrainian company, transactions with an Andorran company are controlled transactions under Article 39 of the Tax Code of Ukraine when the Ukrainian company’s annual income exceeds UAH 150 million and the volume of transactions with that counterparty exceeds UAH 10 million a year. If a Ukrainian resident owns the company and it qualifies as their CFC (Article 39-2 of the same code), its transactions with non-residents from this list are disclosed in the CFC report, and the related income and expenses are measured at arm’s length when the adjusted profit is calculated.

Andorra, Austria or the UK

For a real business in Europe, the principality is usually compared with an Austrian GmbH and a UK Ltd. The basics in one table:

Andorra wins on the rate when the owner relocates and runs the business from the principality. If decisions are made in another country, the company’s own tax residency may be determined by its place of management, and the 10% rate is no longer the final figure. How this is tested is described in our guide on company tax residency; the general logic of choosing between an offshore and a regular company is in offshore vs onshore. For an owner who stays resident in another country, we also work through the CFC rules.

Two-year budget for an offshore company in Andorra

We split the estimate into the first and second year: foreign investment authorisation, share capital, the notarial deed, registration fees, opening the activity at the Comú, premises, bookkeeping, corporate income tax and IGI returns, and bank preparation. If the owner is relocating, we also price the residence permit and tax residency. Describe your project in a request, and we will compare the principality with other European options on the same inputs.

Shelf offshore companies in Andorra

The request to “buy a shelf offshore company in Andorra” comes up often. A sale of shares is executed before an Andorran notary. For a foreign buyer we check in advance whether foreign investment authorisation is needed, and then look into the history of the company itself. The general purchase procedure is described on our shelf offshore companies page.

Frequently asked questions