A qualifying participation
Hold at least 5 % of a subsidiary's share capital, or a subsidiary located in a country linked to Andorra by a tax treaty. This is the gateway to the regime.
→ An accessible threshold
Holding Company · Andorra
Set up a holding company in Andorra:
Set up a holding company in Andorra:
dividends and capital gains tax-free.
Place an Andorran holding company at the top of your corporate group and wealth structure: received dividends and capital gains on qualifying participations are exempt, cash repatriation is optimised, and succession is planned.
The holding company in Andorra, in brief
- Regime: dividends and capital gains on qualifying shareholdings are exempt from corporate tax, subject to conditions on the size of the holding, the holding period and comparable taxation of the subsidiary.
- Form: an SL (€3,000 capital) or an SA whose purpose is to own shareholdings; 10% corporate tax on other income, 4.5% IGI.
- Substance: effective management, resources and decisions genuinely in Andorra — the condition for recognition by France (treaty of 2 April 2013, art. 4).
- Treaty network: more than 20 double tax treaties (France, Spain, Portugal, Luxembourg, Malta…), automatic exchange of information (CRS).
Andorre Gestoria — French-speaking tax and wealth advisory firm, Canillo (RLG CAPITAL, SLU). Up to date as of 3 September 2026.
Andorra
The apex of your group
An Andorran holding company to manage,
Structure my holding
An Andorran holding company to manage,
protect and pass on your wealth.
An Andorran holding company owns your participations — operating companies, real estate, portfolios — and centralises cash flows. Most commonly incorporated as an SL, it combines a favourable tax environment, great flexibility, and simplified wealth transfer.
Dividends & capital gains exempt
Income distributed by qualifying participations and capital gains on their disposal are exempt from corporate income tax.
Manage your participations
A single apex to own and orchestrate multiple companies, whether in Andorra or abroad.
Plan your succession
Organise a smooth family transfer — with no inheritance tax in Andorra.
The participation regime
Taxation of a holding in Andorra: why it is
Taxation of a holding in Andorra: why it is
so effective (exemption, 10% corporate tax).
The regime for participation management companies exempts dividends and capital gains once three straightforward conditions are met — which we put in place with you.
Real economic substance
Management, resources and genuine presence in Andorra: substance makes your holding robust and fully recognised. We build it with you.
→ The foundation of everythingA full exemption
Dividends received and capital gains on disposal of qualifying participations: exempt from corporate income tax. All other activity is subject to the standard 10 % rate.
→ The outcome
An international network
Andorra’s tax treaties: more than 20 agreements
Andorra’s tax treaties: more than 20 agreements
working for your holding.
Far from being an isolated jurisdiction, Andorra is today fully connected to the world. Its network of double-taxation conventions secures your holding's cross-border flows and makes all the difference for international ownership structures.
France, Spain, Portugal, Luxembourg, United Kingdom…
Andorra has signed more than twenty tax treaties: France, Spain and Portugal, but also Luxembourg, the Netherlands, Liechtenstein, Malta, Cyprus, the United Arab Emirates, San Marino, Monaco, Hungary, Croatia, Iceland, and now the United Kingdom. Each treaty is a bridge that secures the dividends and capital gains of your holding.
Use cases
What a holding company in Andorra lets you do: dividends, disposals, succession.
One structure, three powerful levers — which we calibrate to your situation and objectives.
Your companies & assets
Place one or more operating companies, a securities portfolio or real estate under a single roof, whether in Andorra or abroad.
→ A structured wealth baseGroup cash flows
Dividend upstream, group treasury, reinvestment: everything is managed from a single apex within a favourable tax framework.
→ Optimised treasuryYour family wealth
Progressively gift the holding's shares with no inheritance or gift tax in Andorra: wealth transfer becomes seamless.
→ Smooth succession
Frequently asked questions
Holding company in Andorra: your questions answered.
What legal form should an Andorran holding company take?
Most commonly an SL (Societat Limitada), valued for its flexibility and minimum share capital of 3 000 €. An SA is available for larger groups. We select the most suitable form for your structure.
Are dividends received by the holding company exempt?
Yes, for qualifying participations (at least 5 % of share capital, or a subsidiary in a treaty country). Dividends received are then exempt from corporate income tax at the holding level.
What about capital gains on the disposal of participations?
They benefit from the same exemption when the participation is qualifying. Selling a subsidiary through the holding becomes particularly efficient.
Is economic substance required for the holding?
Yes, and it is a genuine strength: real presence in Andorra — management, resources, premises — makes your holding robust and recognised, both locally and internationally. We put this substance in place with you.
Does Andorra have tax treaties?
Yes, more than twenty double-taxation conventions, including France, Spain, Portugal, Luxembourg and, since late 2025, the United Kingdom. This network secures the international flows of your holding.
Can an Andorran holding company own foreign companies?
Yes. An Andorran holding company can hold participations in French, Spanish or other foreign companies. The quality of the structure and the treaty network determine the efficiency of the arrangement: this is precisely what we design.
To hold assets rather than companies, see the wealth management company. For international business activity, the international company. Or compare all company types.
