Opening a shop in Andorra: licence, premises, IGI and customers
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The short answer
For retail, the regime is: a licence or authorisation specific to the activity. The decisive points are: communal licence, lease and seasonality, the legal form (SL) and the formalities specific to the activity. A company set up by a non-resident first goes through foreign investment authorisation.
At a glance
| Criterion | Value |
|---|---|
| Regime | Licence or authorisation specific to the activity |
| Common form | SL |
| Point of caution | Communal licence, lease and seasonality |
| Minimum capital of an SL | 3,000 €verified on 09/10/2026 |
| Corporate income tax | 10 %verified on 09/10/2026 |
Who it is for
Shopkeepers in fashion, sports equipment, cosmetics, gastronomy or home decor aiming at the local and tourist customer base.
What to know before getting started
- The premises are a major cost item: location, commercial lease and fit-out costs determine profitability.
- A communal licence is generally required to open to the public, depending on the parish and the activity.
- The customer base combines residents, cross-border workers and tourists: flows vary strongly with the season.
- Cross-border trade is sensitive to customers' customs allowances: see the customs tool.
- Employees increase the burden through employer contributions.
The formalities specific to this activity
- Look for the premises and negotiate the lease.
- Obtain the parish licence.
- Register for IGI and with the CASS.
Before these formalities, a company set up by a non-resident goes through foreign investment authorisation: decision within 2 monthsverified on 09/10/2026, silence meaning refusal. See the incorporation steps.
The cost of an employee
If you hire, the employer contribution to the CASS is 15.5 %verified on 09/10/2026 of gross salary. Simulate your real cost:
Calculate the cost of an employee
Going further
Figures common to every activity
| Topic | Benchmark |
|---|---|
| Corporate income tax | 10 %verified on 09/10/2026 |
| IGI | General rate of 4.5 %verified on 09/10/2026; below 40,000 €verified on 09/10/2026 of turnover, you are not considered a business operator |
| Minimum capital of an SL | 3,000 €verified on 09/10/2026 |
| Employee at the legal minimum | 1,568.66 €verified on 09/10/2026 gross + 15.5 %verified on 09/10/2026 employer contribution |
| Foreign investment authorisation | Decision within 2 monthsverified on 09/10/2026, silence = refusal |
| Annual accounts | Prepared within 6 monthsverified on 12/10/2026, filed within 1 monthsverified on 12/10/2026 after approval |
Which residency to carry out this activity
Depending on your situation: self-employed residency (stake above 34 %verified on 12/10/2026 in the company and effective management), professional with international projection if the customers are abroad, or the programme for foreign entrepreneurs. The timeline is detailed in the incorporation steps.
Before launching
Have the regime of your activity (free, communal or government licence, regulated profession), the premises and the budget validated: see registered office and the cost simulator.
Work out your own case
Free simulators, built on the official values of this page.
- Cost of an employee and corporate tax in Andorra: calculatorEmployer contributions, net pay before tax and a company's corporate tax.Open
- Andorran IGI and French VAT: price comparisonHow much does the same purchase cost in Andorra and in France?Open
- Quiz: which residency status in Andorra?A few questions, a clear lead towards the right status.Open
Frequently asked questions
Do you need a licence to open a shop?
Generally yes, from the parish. The conditions vary depending on the activity.
Who is the main customer base?
A mix of residents, cross-border workers and tourists. Seasonality must be built into the financial plan.
Can you sell alcohol or tobacco?
These products are subject to specific rules: find out before registering the activity.
Going further
Official sources
This information is general and is not personalised legal, tax or financial advice. It is verified as of the date shown and may change.
