{"id":10171,"date":"2026-05-15T18:10:07","date_gmt":"2026-05-15T16:10:07","guid":{"rendered":"https:\/\/andorrainsiders.com\/sl-andorra\/"},"modified":"2026-05-27T16:52:30","modified_gmt":"2026-05-27T14:52:30","slug":"sl-andorra","status":"publish","type":"post","link":"https:\/\/andorrainsiders.com\/en\/sl-andorra\/","title":{"rendered":"Limited liability companies (SL) in Andorra 2026: incorporation, minimum capital and taxation"},"content":{"rendered":"<p class=\"ultima-actualizacion\"><em>Last updated: May 2026<\/em><\/p>\n\n\n\n<h1 class=\"wp-block-heading\">Limited liability companies (SL) in Andorra 2026: incorporation, minimum capital and taxation<\/h1>\n\n\n\n<p>Setting up a Limited Liability Company (SL) in Andorra costs <strong>\u20ac3,000 minimum capital<\/strong>It takes between 4 and 6 weeks and is taxed to <strong>Corporate Income Tax of 10%<\/strong> \u2014compared to Spain&#039;s 25% or France&#039;s 33%. It&#039;s the most popular vehicle used by freelancers, entrepreneurs, and digital nomads relocating their business to the Principality. This guide explains exactly how to do it, what requirements the CCIS demands, and what actual costs you should budget for.<\/p>\n\n\n\n<div class=\"wp-block-group datos-clave\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"wp-block-heading\">Key data (2026)<\/h4>\n<ul class=\"wp-block-list\">\n<li><strong>Minimum capital SL:<\/strong> \u20ac3,000 (fully paid up upon incorporation)<\/li>\n<li><strong>IS Andorra Type:<\/strong> 10% (OECD global effective minimum: 15% from 2025)<\/li>\n<li><strong>Incorporation deadline:<\/strong> 4\u20136 weeks (CCIS + notary + Registry of Companies)<\/li>\n<li><strong>Minimum partners:<\/strong> 1 (sole proprietorship permitted)<\/li>\n<li><strong>Companies active in Andorra (2025):<\/strong> Approximately 14,200<\/li>\n<li><strong>Foreign participation:<\/strong> up to 100% since 2012 (previously limited to 33%)<\/li>\n<\/ul>\n<p><em>Source: CCIS \/ Department of Statistics of Andorra \/ Ministry of Finances<\/em><\/p>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Why set up a limited liability company (SL) in Andorra?<\/h2>\n\n\n\n<p>Andorra combines four advantages that do not exist together in any other European country:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>IS al 10%<\/strong> on net profits (with a minimum effective rate of 15% under OECD Pillar 2 for large groups)<\/li>\n<li><strong>IGI (VAT) at 4.5%<\/strong> \u2014the lowest in Western Europe<\/li>\n<li><strong>No wealth tax<\/strong> nor of inheritances between family partners<\/li>\n<li><strong>Access to the European market<\/strong> via customs agreement and, soon, EU Association Agreement<\/li>\n<\/ul>\n\n\n<p>For a self-employed person who invoices \u20ac200,000 annually with \u20ac80,000 in profit, the tax difference compared to Spain can exceed \u20ac10,000 annually \u2014not counting contributions to the CASS, which are significantly lower than to the Spanish Social Security.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">IS comparison by country: Andorra vs Europe<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr>\n<th>Country<\/th><th>IS Type<\/th><th>standard VAT<\/th><th>Dividend WHT<\/th><th>OECD Pillar 2 Minimum<\/th>\n<\/tr><\/thead><tbody>\n<tr><td><strong>Andorra<\/strong><\/td><td><strong>10%<\/strong><\/td><td><strong>4,5%<\/strong><\/td><td><strong>0%<\/strong><\/td><td>15% (large groups)<\/td><\/tr>\n<tr><td>Spain<\/td><td>25%<\/td><td>21%<\/td><td>19%<\/td><td>15%<\/td><\/tr>\n<tr><td>France<\/td><td>25%<\/td><td>20%<\/td><td>30%<\/td><td>15%<\/td><\/tr>\n<tr><td>Portugal<\/td><td>21%<\/td><td>23%<\/td><td>28%<\/td><td>15%<\/td><\/tr>\n<tr><td>Ireland<\/td><td>12,5%<\/td><td>23%<\/td><td>25%<\/td><td>15%<\/td><\/tr>\n<tr><td>Luxembourg<\/td><td>17%<\/td><td>17%<\/td><td>15%<\/td><td>15%<\/td><\/tr>\n<\/tbody><\/table><\/figure>\n\n\n\n<p><em>OECD Pillar 2: applicable to groups with consolidated revenues &gt; \u20ac750 million. Andorran SMEs are taxed at the effective 10% rate without restriction.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Legal requirements to set up a limited liability company (SL) in Andorra<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Company type: Limited Liability Company (SRL)<\/h3>\n\n\n\n<p>In Andorra, the equivalent of the Spanish SL is the <strong>Limited Liability Company (SRL)<\/strong>, regulated by Law 20\/2007, of October 18, of the limited company. Its main features:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Limited liability<\/strong> to the capital contributed<\/li>\n<li><strong>Minimum capital: \u20ac3,000<\/strong> \u2014fully disbursed at the time of incorporation<\/li>\n<li><strong>Social participation<\/strong> (not shares) \u2014 they cannot be listed on the stock exchange<\/li>\n<li><strong>Management body<\/strong>: sole administrator, joint administrator or board<\/li>\n<li><strong>Registered office<\/strong> mandatory in Andorra<\/li>\n<\/ul>\n\n\n<h3 class=\"wp-block-heading\">Real economic activity (substance)<\/h3>\n\n\n\n<p>Andorra demands <strong>real economic substance<\/strong> To access IS, dial 10%. This means:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Genuine activity developed from Andorra (not a mailbox)<\/li>\n<li>At least one employee or administrator with active residence in Andorra<\/li>\n<li>Physical office or accredited coworking contract<\/li>\n<li>Management decisions made from the Principality<\/li>\n<\/ul>\n\n\n<p>Without substance, the company may be reclassified by the tax authorities of the partner&#039;s country of residence as a &quot;disguised permanent establishment&quot; and taxed at origin.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Step-by-step incorporation process<\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Reservation of company name<\/strong> \u2014 CCIS (Chamber of Commerce, Industry and Services of Andorra): \u20ac50\u2013100, 3\u20135 business days<\/li>\n<li><strong>Opening of a notary bank account<\/strong> \u2014 MoraBanc, Creand or BancSabadell d&#039;Andorra: deposit of \u20ac3,000 capital. The bank issues a certificate of deposit.<\/li>\n<li><strong>Drafting of statutes<\/strong> \u2014 with a local lawyer or advisor. The bylaws define the corporate purpose, shares, and governing body.<\/li>\n<li><strong>Public deed before an Andorran notary<\/strong> \u2014 Notary fees: \u20ac400\u2013\u20ac800 depending on the amount and complexity<\/li>\n<li><strong>Registration in the Registry of Companies<\/strong> \u2014 Ministry of Presidency, Economy and Business: \u20ac150\u2013300, 10\u201315 business days<\/li>\n<li><strong>Registration with the Ministry of Finance (NRT)<\/strong> \u2014 Tax Registration Number: free, 5 business days<\/li>\n<li><strong>High CASS<\/strong> \u2014 if there are employees or salaried administrators: employer contribution ~15.5% of gross salary<\/li>\n<li><strong>Municipal business license<\/strong> \u2014 Parish council where the address is located: \u20ac200\u2013600<\/li>\n<\/ol>\n\n\n\n<p><strong>Realistic total timeframe: 4\u20136 weeks<\/strong> if all documents are prepared (passports, NIE\/NRT for foreign partners, apostilles).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Actual incorporation costs<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr>\n<th>Concept<\/th><th>Estimated cost<\/th>\n<\/tr><\/thead><tbody>\n<tr><td>Minimum (recoverable) capital<\/td><td>3.000 \u20ac<\/td><\/tr>\n<tr><td>CCIS fees + registration<\/td><td>\u20ac300\u2013500<\/td><\/tr>\n<tr><td>Notary<\/td><td>\u20ac400\u2013800<\/td><\/tr>\n<tr><td>Legal advisor \/ manager<\/td><td>\u20ac1,500\u20133,000<\/td><\/tr>\n<tr><td>Business License<\/td><td>\u20ac200\u2013600<\/td><\/tr>\n<tr><td>Registered office (first year)<\/td><td>500\u20131,200 \u20ac<\/td><\/tr>\n<tr><td><strong>Total without capital<\/strong><\/td><td><strong>~3,000\u20136,000 \u20ac<\/strong><\/td><\/tr>\n<\/tbody><\/table><\/figure>\n\n\n\n<p>Annual recurring costs\u2014accounting, auditing if thresholds are exceeded, licensing, and registered office\u2014range between <strong>\u20ac3,000 and \u20ac8,000 per year<\/strong> for a medium-sized company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Taxation of the Andorran LLC<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Corporation Tax (IS)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>General type: 10%<\/strong> on the taxable base<\/li>\n<li><strong>Reduced type: 5%<\/strong> for technology startups during the first three years<\/li>\n<li><strong>Dividend exemption<\/strong>Dividends received from subsidiaries (shareholding \u2265 5% for 12 months) are exempt if they are taxed at source at least at 4%<\/li>\n<li><strong>Patent box<\/strong>: intellectual property income at 2% effective (80% reduction of taxable base)<\/li>\n<li><strong>No withholding tax on dividends<\/strong> distributed to non-resident partners (withholding tax: 0%)<\/li>\n<\/ul>\n\n\n<h3 class=\"wp-block-heading\">IGI (equivalent to VAT)<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>General type: <strong>4,5%<\/strong><\/li>\n<li>Reduced rate (food, public transport): 1%<\/li>\n<li>Special rate (banking services, insurance): 2%<\/li>\n<li>Exports of services outside of Andorra may be exempt.<\/li>\n<\/ul>\n\n\n<h2 class=\"wp-block-heading\">When does it make fiscal sense to set up an LLC?<\/h2>\n\n\n\n<p>The key question is not whether Andorra has lower taxes (yes, clearly), but <strong>if the savings justify the fixed costs<\/strong> of structure, residence and management. A rule of thumb:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Net profit &lt; \u20ac50,000 per year<\/strong>: hardly profitable (fixed annual cost of \u20ac6,000\u201310,000 + accommodation)<\/li>\n<li><strong>Net profit \u20ac50,000\u2013150,000<\/strong>Clear breakeven; tax savings \u20ac7,500\u2013\u20ac22,500 vs Spain<\/li>\n<li><strong>Net profit &gt; \u20ac150,000<\/strong>Highly recommended; the difference grows exponentially<\/li>\n<\/ul>\n\n\n<p><strong>Important:<\/strong> the partner must also <strong>transfer your tax residence to Andorra<\/strong> (minimum 183 days\/year) to avoid paying personal income tax in Spain on distributed dividends. Without a change of residence, the corporate advantage is neutralized.<\/p>\n\n\n\n<div class=\"wp-block-group fuentes-autoridad\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"wp-block-heading\">Official sources<\/h4>\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.ccis.ad\/\" rel=\"noopener noreferrer\" target=\"_blank\">CCIS \u2014 Constitution and business procedures<\/a><\/li>\n<li><a href=\"https:\/\/www.govern.ad\/finances\" rel=\"noopener noreferrer\" target=\"_blank\">Ministeri de Finances \u2014 Impost de Societats Andorra<\/a><\/li>\n<li><a href=\"https:\/\/www.bopa.ad\/\" rel=\"noopener noreferrer\" target=\"_blank\">BOPA \u2014 Llei 95\/2010 IS and Llei 20\/2007 SRL<\/a><\/li>\n<li><a href=\"https:\/\/www.estadistica.ad\/\" rel=\"noopener noreferrer\" target=\"_blank\">Department of Statistics \u2014 Empreses actives Andorra 2025<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group articulos-relacionados\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<h4 class=\"wp-block-heading\">Related articles<\/h4>\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/andorrainsiders.com\/en\/andorra-holding-company\/\">Holding in Andorra 2026: IS at 10%, dividend exemption and patent box<\/a><\/li>\n<li><a href=\"https:\/\/andorrainsiders.com\/en\/open-and-set-up-a-business-in-andorra\/\">How to open a business in Andorra: a complete guide<\/a><\/li>\n<li><a href=\"https:\/\/andorrainsiders.com\/en\/taxes-types-rates\/\">Taxes in Andorra: all types and rates 2026<\/a><\/li>\n<li><a href=\"https:\/\/andorrainsiders.com\/en\/social-security-cass\/\">CASS: Andorran social security explained<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<script type=\"application\/ld+json\">{\n    \"@context\": \"https:\\\/\\\/schema.org\",\n    \"@type\": \"Article\",\n    \"headline\": \"SL en Andorra 2026: constituci\\u00f3n, capital m\\u00ednimo 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Limited Liability Companies (SL) in Andorra 2026: Incorporation, Minimum Capital, and Taxation. Incorporating a Limited Liability Company (SL) in Andorra requires a minimum capital of \u20ac3,000, takes between 4 and 6 weeks, and is taxed under Corporate Income Tax (10%) \u2014compared to 25% in Spain or 33% in France. It is the most common business vehicle\u2026 <a title=\"Limited liability companies (SL) in Andorra 2026: incorporation, minimum capital and taxation\" class=\"read-more\" href=\"https:\/\/andorrainsiders.com\/en\/sl-andorra\/\" aria-label=\"Read more about SL in Andorra 2026: incorporation, minimum capital and taxation\">Read more<\/a><\/p>","protected":false},"author":1,"featured_media":10412,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[286,194],"tags":[769,767,768],"class_list":["post-10171","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-emprender","category-fiscal","tag-empresa-andorra","tag-sl","tag-sociedad-limitada"],"_links":{"self":[{"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/posts\/10171","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/comments?post=10171"}],"version-history":[{"count":1,"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/posts\/10171\/revisions"}],"predecessor-version":[{"id":10213,"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/posts\/10171\/revisions\/10213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/media\/10412"}],"wp:attachment":[{"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/media?parent=10171"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/categories?post=10171"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/andorrainsiders.com\/en\/wp-json\/wp\/v2\/tags?post=10171"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}