top of page

Andorra

Andorra in a few figures

The capital of Andorra - Andorra la Vella - is the highest capital in Europe (around 1030 m above sea level).

 

Andorra is a parliamentary democracy. Today Andorra has its own Constitution (it was adopted in 1993). The country is a member of the United Nations and other major international organizations, both political and economic.

Andorra is a parliamentary principality. Historically, however, Andorra is controlled by the co-princes of Spain and France:

- the bishop of La Seu d'Urgell and the president of the French Republic.

- The Bishop of Urgell and the French President are the guarantors of the political system of Andorra.

Andorra does not have its own army. The country is under the protection of the Spanish and French armed forces.

 

The population of Andorra (according to Andorra government statistics from 01.01.2017) is 73,105 people. Only 36% of the population is Andorran, while 44% are Spanish, 11% are Portuguese, 7% are French, and the rest are a variety of other nationalities.

 

The working population on January 1, 2017 was 37,134 people. Unemployment in Andorra stood at 2.9% last year.

94.9% of the workforce is employed in the service sector; 4.7% in industry and only 0.4% in agriculture.

The minimum wage in 2018 is 1,045.33 euros per month. At the start of 2017 inflation reached 1.2%.

 

In 2017, the international rating agency Fitch maintained Andorra's rating at BBB (stable outlook).

 

The Principality of Andorra is not part of the European Union, however, the country's national currency is the euro. Andorra is the only country in Europe that uses the euro as its national currency without a formal agreement with the EU.

 

5 banks are represented in Andorra. The country's banking system, working in the field of private banking services. In 2017 accumulated almost 50 billion euros in the accounts of private customers. (for around 70,000 inhabitants ...)

 

In Andorra, there is a foreign bank, Vallbanc (originally it was BPA - Banca Privada d'Andorra, which was taken over by an American bank).

Banks in Andorra are open Monday to Friday from 9:30 a.m. to 4:30 p.m. with a lunch break from 12:00 p.m. to 2:00 p.m.

 

90% of the population consider themselves Catholic. According to the Constitution of Andorra, the state religion is considered to be Catholicism. Religious freedom was proclaimed, however, the fundamental law of the Catholic Church was mentioned separately.

 

The government language of Andorra is Catalan (Catalá). more details here .

The seven parishes of Andorra

paroisses Andorre - Platine Solutions

Taxation in Andorra is unique

 

Here are some examples

  • No personal income or wealth tax.

  • Corporate income tax: 5% the first year and 10% thereafter, for financial holding companies 2%.

  • No tax on dividends, royalties and capital gains.

  • No tax on capital gains when they are sold.

  • No inheritance tax on property.

  • 4.5% VAT

  • Reduced social charges.

  • No corporate vehicle taxes.

  • Purchase of duty free vehicles.

  • Banking secret. There is no fiscal or banking exchange with other countries.

  • For residents, driver's license without points.

  • Absolute security

Many activities

 

You like sport, shopping, relaxation, ...

Let yourself be guided !!!

The activities

Remember that setting up a company in Andorra allows you to obtain residency in Andorra . This will allow you to benefit from the tax advantages offered by the principality. Be aware that it is quite possible and legal to own a company abroad (called offshore companies ). Our business center will help you with the necessary procedures.

bottom of page