Starting a business in Andorra: foreigner's guide (2026)

Parliament enacted the Omnibus Law requiring foreign-invested Andorran companies to commence genuine economic activity within 18 months of formation, capping non-resident residential property acquisition at two units, and raising the minimum investment-residency threshold to €1,000,000 — the most significant tightening of the business-entry framework since 2012.

The Commission submitted a formal proposal to the EU Council to sign and conclude the Association Agreement with Andorra (and San Marino), initiating ratification across member states and opening a path for Andorran firms to access the EU single market's four freedoms.

Andorra introduced a progressive tax of 3–10% on real estate acquisitions by non-residents, replaced the prior moratorium with a permanent regime, and shifted authorisation to negative administrative silence (denial if no reply within two months), materially raising the cost and complexity of foreign property-linked business entry.

The European Commission declared the successful conclusion of negotiations on an Association Agreement granting Andorra access to the EU single market, marking the most consequential structural shift in Andorra's business environment in decades.

Parliament enacted a landmark law introducing dedicated startup legal forms (SLS/SAS), special economic zones, regulatory sandboxes, stock-option frameworks, digital nomad visas, accelerators, and regulated crowdfunding — opening Andorra to technology-driven business models for the first time.

The government approved modifications to Law 10/2012 to reduce administrative friction for foreign-invested companies entering Andorra and to strengthen post-authorisation oversight mechanisms, reflecting growing interest from international entrepreneurs.

Andorra introduced personal income tax at a 10% flat rate, completing its transition from an indirect-tax-only system to a conventional direct-tax model, removing the 'tax haven' designation and strengthening Andorra's legitimacy as a business domicile in international eyes.

Parliament replaced the 2008 restrictive law with Law 10/2012, permitting non-residents to own up to 100% of any Andorran company for the first time; prior authorisation is retained for direct investments above 10% but must be resolved within one month, with positive administrative silence.

Andorra's first foreign investment law required government authorisation for all foreign direct investment and capped non-resident equity in Andorran companies at 49%, making it effectively impossible for foreigners to found or control a company without an Andorran majority partner.

The government adopted the implementing regulation creating the Registre de Societats Mercantils under the Ministry of Economy, requiring newly incorporated companies to register within 15–20 days of notarial deed and establishing the public record against which all company acts are measured.

Parliament enacted the Companies Act governing anonymous societies (SA, min. capital €60,000) and limited liability companies (SL, min. capital €3,000), replacing a 1983 regulation and providing the foundational legal framework for all business formation in Andorra to this day.