Setting up a web or software development company in Andorra
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The short answer
For web and software development, the regime is: open activity, outside sector-specific licences. The decisive points are: hiring and substance, the legal form (sl or slu) and the formalities specific to the activity. A company set up by a non-resident first goes through foreign investment authorisation.
In brief
| Criterion | Value |
|---|---|
| Regime | Open activity, outside sector-specific licences |
| Usual form | SL or SLU |
| Point of caution | Hiring and substance |
| 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
Freelance developers, web agencies, SaaS creators, app studios and software publishers who want to base the founding team in Andorra.
What to know before you start
- The company is the natural vehicle as soon as there are partners, employees or major customers.
- Local hiring is limited by the size of the market: plan for remote working or staff living across the border, with their social security constraints.
- Intellectual property (code, trademarks, licences) must be assigned to the company by written contract from the outset.
- If you process data of European customers, the GDPR applies regardless of where your registered office is.
- Revenue streams (subscriptions, licences, services) do not all receive the same IGI and tax treatment: document them with your gestoria.
Formalities specific to this activity
- Incorporate the SL or SLU with the minimum capital.
- Assign the intellectual property to the company.
- Register for IGI and CASS and declare the employees.
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 CASS contribution is 15.5 %verified on 09/10/2026 of gross salary. Simulate your actual cost:
Calculate the cost of an employee
Going further
Figures common to every activity
| Subject | 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 on 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 | Drawn up 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 an international outlook if the customers are abroad, or the programme for foreign entrepreneurs. The timetable is detailed in the incorporation steps.
Before launching
Have the regime of your activity validated (open, municipal or government licence, regulated profession), along with the premises and the budget: see domiciliation and the cost simulator.
Work out your own case
Free simulators, built on the official values of this page.
Frequently asked questions
Can a SaaS be based in Andorra?
Yes. The company has an Andorran address and its customers are everywhere. You need to make sure the company is genuinely managed from the country.
Can I hire developers remotely?
Yes, but their social security and tax status depends on their country of residence: look into it before contracting.
Do I need a licence to develop software?
In principle there is no specific licence, apart from regulated fields such as finance.
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.