Holding company or operating SL alone in Andorra: how to choose
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The short answer
A holding company is justified for grouping shareholdings, reinvesting profits or preparing a sale. For a single activity with no reinvestment plan, an SL is enough and remains simpler and cheaper.
The question to ask first
Do you need a holding company above the company that does the work, or is a single company enough? The answer depends on what you want to do with the profits, not on the prestige of the structure.
Comparison
| Criterion | Operating SL alone | Holding company + operating SL |
|---|---|---|
| Number of companies to maintain | One | Two or more (accounting, registered office, formalities) |
| Minimum capital | 3,000 €verified on 09/10/2026 | 3,000 €verified on 09/10/2026 per company |
| Tax on profits | General rate of 10 %verified on 09/10/2026 | Same for the SL; dividends received by the holding company exempt if the conditions of article 20 are met |
| Reinvesting elsewhere without taking the money out | Difficult | Possible: the holding company receives and reinvests |
| Preparing a sale | Direct sale of the SL | Sale of the SL by the holding company, capital gain exempt under conditions |
| Simplicity | Maximum | Heavier |
When a holding company is worth it
- You plan several activities or shareholdings to group together.
- You want to bring up the profits of one activity to reinvest in another.
- You are preparing the sale of a company and want to keep the proceeds in a structure.
- A family succession is being considered (inheritance and gift).
When it is not worth it
- A single activity, no reinvestment plan: the SL alone is enough.
- The shareholder remains tax resident in France: the structure does not solve the tax problem (holding company and French tax authorities).
- The shareholdings are mostly Andorran real estate: the exclusions from the exemption apply.
The numerical test
Estimate the effect with the holding company simulator: enter the share held, the holding period and the country of the subsidiary. If the tax avoided is small or the exemption does not apply, the holding company adds nothing.
Key takeaway
A holding company is an organisational tool. It adds management and costs; it is justified only by a concrete use. Back to the guide: holding company in Andorra.
Work out your own case
Free simulators, built on the official values of this page.
- Andorran holding simulator: exemption of dividends from shareholdingsDoes your dividend meet the exemption conditions? Tax avoided and net amount kept.Open
- Cost of an employee and corporate tax in Andorra: calculatorEmployer contributions, net pay before tax and a company's corporate tax.Open
- Quiz: which residency status in Andorra?A few questions, a clear lead towards the right status.Open
Frequently asked questions
Do I need a holding company for a single activity?
Generally not. An SL is enough as long as there is no plan to reinvest, to group shareholdings or to prepare a sale.
Does a holding company reduce the tax on the SL's profits?
No. The SL remains taxed at the general rate of 10 %. The advantage relates to the dividends received by the holding company, exempt if the conditions are met.
What capital for a holding company set up as an SL?
The minimum capital of an SL is 3,000 €, for each company.
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.