Why so many entrepreneurs are moving to Andorra

Reading time: 6 minutes

🏁 Introduction

In recent years, Andorra has evolved from a little-known destination into a reference point for European entrepreneurs and professionals. It’s not just about paying fewer taxes, but about living and working in a stable, secure, and predictable environment that allows long-term projects to thrive.
This article explores the real reasons why an increasing number of entrepreneurs are choosing to establish their residence and business in the Principality.

🪨 1. Political and legal stability

Andorra offers a solid institutional framework and clear regulations, providing legal certainty for both businesses and individuals.
Its political system is stable, its commercial law is aligned with European standards, and the country maintains international agreements that reinforce transparency and investor confidence.
For entrepreneurs, this stability is a tangible asset — it enables planning, investment, and operation without uncertainty.

💰 2. Competitive and predictable taxation

Andorra’s tax system is based on low rates and efficient administration.

• Corporate tax: 10% maximum
• Personal income tax (IRPF): up to 10%
• Indirect tax (IGI): 4.5% — one of the lowest in Europe
  Additionally, Andorra has double taxation agreements that prevent income from being taxed twice.
  This framework doesn’t attract opportunists — it fosters real, long-term economic activity within the country.

➤ To better understand how the Andorran tax system is structured and which taxes apply to residents and companies, you can read Taxation in Andorra: advantages and obligations, where we explain in detail the tax rates, the double-taxation treaties, and the key principles of Andorra’s fiscal framework.

🏔️ 3. Safe, natural, and connected environment

Andorra combines a privileged natural setting with excellent connectivity.
Its proximity to Barcelona and Toulouse ensures easy access to international markets.
The country also stands out for its safety, low crime rate, and high-quality public services.
For many entrepreneurs, this balance between business and quality of life is decisive.

🚀 4. Ease of doing business

Setting up a company in Andorra is safe, transparent, and efficient.
Procedures can be completed within weeks, and the legislation allows simple, well-regulated corporate structures.
Access to qualified professionals — advisors, lawyers, auditors — ensures compliance with all fiscal and accounting obligations.
All of this makes Andorra an efficient and reliable hub for business, even for international companies seeking a solid European base.

🌍 5. International reputation and projection

Andorra has signed multiple cooperation and transparency agreements with the EU, OECD, and IMF.
Its image has shifted from a once opaque jurisdiction to a modern, transparent, and globally recognized state.
Today, establishing a business or residence in Andorra is a strategic and legitimate choice for those who value a sustainable, competitive environment.

Conclusion

The growing relocation of entrepreneurs to Andorra is not a trend, but a rational decision based on facts: stability, low taxation, quality of life, and legal certainty.
The country offers a unique balance between economic efficiency and personal well-being, explaining why so many international projects choose to grow here with a long-term vision.