How much does it cost to maintain a company in Andorra? Ongoing obligations

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The real annual cost of maintaining an Andorran company

Once a company has been incorporated, registered and is fully operational, a second phase begins — one that is often underestimated: annual maintenance.
This cost does not depend solely on taxes, but also on the ongoing compliance with legal, accounting and administrative obligations.

In this article, we explain which costs are recurrent for an Andorran company, distinguishing between:

• mandatory fees and registrations
• the real cost of accounting and tax compliance
• direct and indirect taxes

The aim is not to provide a fixed figure, but to help you understand the true cost structure and avoid unexpected expenses.

1️⃣ Mandatory annual fees and registrations

All Andorran companies, whether active or inactive, must be registered with an official register (Commercial Companies Register) and pay an annual fee.
The applicable register depends on the type of company and whether it carries out business activity within the Principality.

🔹 Companies with commercial activity

Companies carrying out commercial, industrial or service activities in Andorra must be registered with the Trade and Industry Register.

• Annual Trade and Industry Register fee: €214.21

This fee replaces the Commercial Companies Register fee and remains payable for as long as the activity is declared.

🔹 Companies without activity (holding or asset-holding companies)

Companies that do not carry out any activity in Andorra are not registered with the Trade Register, but must remain registered with the Commercial Companies Register.

• Private Limited Company (SL): €851.00 per year
• Public Limited Company (SA): €935.50 per year

❗ This cost applies even if the company does not invoice, has no employees and no banking activity.

➤ To explore this structure further, see Holding companies in Andorra: tax treatment and key advantages.

🔹 IRAC: Tax on the Establishment of Commercial Activities

Companies with commercial activity (excluding pure holding or asset-holding structures) are subject to the Tax on the Establishment of Commercial Activities (IRAC), which is levied at parish level.

➤ For further details, see Opening a business and obtaining commercial authorisation in Andorra: requirements and regulatory framework.

This tax is often overlooked because:

• it is communal rather than state-level
• it does not have a fixed or uniform amount

It is generally moderate, although it depends on the surface area used by the business.
Although paid in advance, it is treated as a prepayment of Corporate Income Tax, making it fiscally neutral.

The amount of IRAC mainly depends on:

• the parish where the activity is carried out
• the declared type of activity
• the surface area of the premises
• the location and characteristics of the establishment

As a result, there is no standard amount, but it is a recurring cost that must be anticipated for any operational company with physical presence.
The minimum typically ranges between €200 and €300 per year.

2️⃣ The cost of accounting and tax compliance

This is where the greatest variability in costs arises.

Accounting and tax compliance is not a flat fee service; it depends directly on the volume and complexity of the company’s activity.

It is essential to note that accounting is not optional, but a legal requirement, regardless of turnover. All companies must keep accounts in accordance with Andorran regulations, including:

• recording issued and received invoices
• tracking bank transactions
• registering contracts with accounting impact
• reconciliations
• annual accounting close
• preparation and filing of annual accounts

These obligations apply even to companies with minimal or no activity and necessarily include the filing of annual accounts and the Corporate Income Tax return.

➤ For a detailed overview, see Tax and accounting obligations in Andorra: what companies and freelancers must comply with.

🔹 Indicative starting point

An indicative minimum cost can be estimated at around €1,800 per year (approximately €150 per month + IGI) for inactive companies.

In practice, costs typically range between €200 and €250 per month for companies with low complexity.

This threshold usually applies to companies with:

• few bank transactions
• few invoices
• a simple structure
• limited or purely asset-holding activity

🔹 Factors that increase costs

Monthly costs increase depending on several factors, most notably:

• number of issued invoices
• number of received invoices
• volume of banking transactions
• quality and organisation of documentation
• application of IGI
• international transactions
• reporting requirements or interaction with banks or authorities
• number of countries involved
• difficulty in obtaining the required documentation
• complexity of the Corporate Income Tax calculation (international deductions, complex transactions, etc.)

👉 For standard operating companies, monthly costs are generally higher than the minimum baseline.

3️⃣ Direct and indirect taxes

Before detailing the main taxes, it is worth recalling the existence of the IRAC (Commercial Activity Registration Tax), previously addressed, which—despite being referred to as a tax—operates in practice as a communal fee. It should also be noted that it is treated as a payment on account of corporate income tax.

🔹 Corporate Income Tax (CIT)

Corporate Income Tax applies to the results of any company in Andorra, whether operational or not.

• General tax rate: 10%
• Only applicable if there is a positive taxable base (otherwise, losses may be carried forward)

It involves:

• an annual tax return
• advance payments, where applicable
• payment of the tax following the filing of the return

CIT is not a fixed cost, but it is a structural obligation forming part of the normal maintenance of any company.

➤ To go deeper, see Corporate Income Tax in Andorra: rates, special regimes and tax deductions.

🔹 General Indirect Tax (IGI)

Companies carrying out IGI-taxable transactions — effectively most operating companies — must comply with:

• periodic filings (usually quarterly)
• informative declarations
• monitoring of charged and deductible tax

IGI is not a cost for the company, but it does represent an administrative and accounting burden.

➤ For further insight, see VAT in Andorra: how the General Indirect Tax (IGI) works.

🔹 Other communal taxes

For companies owning real estate or real estate rights, two additional communal obligations may apply:

• tax on rental income
  ➤ Rental income tax in Andorra: rates applied by each parish
• property ownership tax
  ➤ Property tax in Andorra: what it is and how it is calculated by parish

In the first case, the tax is treated as a prepayment of Corporate Income Tax.
In the second, the amount is generally minimal.

Are there any other recurring costs?

In most cases, there are no additional mandatory structural costs beyond those described above.

However, depending on the company’s structure, additional costs may arise, such as:

• CASS social security contributions (if there are employees or paid directors)
  ➤ Social security contributions for self-employed workers in Andorra: reduced regimes and general obligations
• payroll management and related filings
• specific banking requirements

These costs do not affect all companies and depend entirely on the specific structure in place.

A matter of planning, not just costs

Maintaining a company in Andorra is not limited to paying taxes. It includes:

• mandatory annual fees
• the cost of properly meeting accounting and tax obligations
• and, where applicable, direct and indirect taxes

A seemingly “simple” company can become costly if poorly organised, while a more active company can remain efficient if it is well structured from the outset.

➤ If you are not yet familiar with incorporation costs, see How much does it cost to incorporate a company in Andorra: real expenses and indicative budget.

➤ For a complete step-by-step overview, we recommend the Definitive guide to setting up a company in Andorra.

📞 Do you need help or have further questions?

If you would like to analyse your specific situation, you can contact us through the contact form.

And if you prefer a personalised and comprehensive approach from the outset, you can book your meeting via the footer of this article.

Last review: December 2025