{"id":14043,"date":"2025-05-20T21:48:40","date_gmt":"2025-05-20T19:48:40","guid":{"rendered":"https:\/\/www.augelegalfiscal.com\/?p=14043"},"modified":"2026-02-19T11:32:50","modified_gmt":"2026-02-19T10:32:50","slug":"autonomous-vs-sl-andorra","status":"publish","type":"post","link":"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/","title":{"rendered":"Starting as a Freelance or Creating a Limited Company (SL) in Andorra, which option is more advantageous from a tax, legal, and operational perspective?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">In Andorra, starting a business can be done in several ways, with the main ones being: as a freelance professional or through the incorporation of a limited company (SL). Choosing between these options is not just a matter of simplicity or initial cost \u2014 it also has important tax, legal, and strategic implications.<\/span><\/p>\n\n\n\n<p>Below, we outline the key differences to help you make an informed decision:<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #8f2b2f;color:#8f2b2f\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #8f2b2f;color:#8f2b2f\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/#1_Fiscalidad\" >1. Fiscalidad<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/#2_Liability\" >2. Liability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/#3_Professional_Image_and_Scalability\" >3. Professional Image and Scalability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/#4_Costes_y_tramites\" >4. Costes y tr\u00e1mites<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/#5_Consideraciones_de_inmigracion_y_residencia\" >5. Consideraciones de inmigraci\u00f3n y residencia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/#SL_Sociedad_Limitada_la_via_habitual_para_no_residentes\" >SL (Sociedad Limitada): la v\u00eda habitual para no residentes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.augelegalfiscal.com\/en\/autonomous-vs-sl-andorra\/#Requisitos_principales\" >Requisitos principales:<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Fiscalidad\"><\/span><h2><strong>1. Fiscalidad<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Freelance<\/b><span style=\"font-weight: 400;\">: taxed under personal income tax (IRPF) on net profit. The general rate is 10%, with no progressive brackets, although there are certain reductions for income under \u20ac40,000, which lowers the effective average rate.<\/span><\/li>\n\n\n\n<li><b>Limited Company (SL)<\/b><span style=\"font-weight: 400;\">: taxed under Corporate Income Tax (IS), also at 10% on profit. If dividends are distributed, they are generally exempt from IRPF.<\/span><\/li>\n<\/ul>\n\n\n\n<p>Tax rates may appear similar, but an SL allows for greater planning and income deferral.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Liability\"><\/span><h2><b>2. Liability<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Freelance<\/b><span style=\"font-weight: 400;\">: personally liable with all personal assets.<\/span><\/li>\n\n\n\n<li><b>SL<\/b><span style=\"font-weight: 400;\">: liability is limited to the capital contributed (minimum \u20ac3,000).<\/span><\/li>\n<\/ul>\n\n\n\n<p>An SL protects personal assets, which is crucial for higher-risk activities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Professional_Image_and_Scalability\"><\/span><h2><b>3. Professional Image and Scalability<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Freelance<\/b><span style=\"font-weight: 400;\">: simpler option for individual services or limited invoicing.<\/span><\/li>\n\n\n\n<li><b>SL<\/b><span style=\"font-weight: 400;\">: offers a more professional image, facilitates partnerships, the entry of partners and investors, and enables structured growth.<\/span><\/li>\n<\/ul>\n\n\n\n<p>An SL is more suitable if you plan to scale or attract investment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Costes_y_tramites\"><\/span><h2><strong>4. Costes y tr\u00e1mites<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Freelance<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul class=\"wp-block-list\">\n<li>Simpler formalities.<\/li>\n\n\n\n<li>No minimum capital required.<\/li>\n\n\n\n<li>Lower accounting costs, although bookkeeping is still required.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><b>Limited Company<\/b><span style=\"font-weight: 400;\">:<\/span>\n<ul class=\"wp-block-list\">\n<li>Requires notarial and registry procedures.<\/li>\n\n\n\n<li>Business plan must be approved by the Government.<\/li>\n\n\n\n<li>Mandatory bookkeeping and submission of annual accounts.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p>Becoming a freelance professional has a lower entry barrier but fewer mid-term advantages.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Consideraciones_de_inmigracion_y_residencia\"><\/span><h2><strong>5. Consideraciones de inmigraci\u00f3n y residencia<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><\/h2>\n\n\n\n<p><b>Freelance (Individual Entrepreneur)<\/b><span style=\"font-weight: 400;\">One of the most decisive factors when starting a business in Andorra is the applicant\u2019s immigration status. Having a project is not enough: to legally operate as a freelance, you must have <\/span><b>active residency<\/b><span style=\"font-weight: 400;\"> in the country or be able to practice a <\/span><b>regulated profession<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n\n\n<p>For regulated professions, even a non-resident can apply for self-employment residency, as long as the following requirements are met:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400;\">University degree recognized by the Andorran Ministry of Education.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Profession recognized as regulated by the Government (e.g., lawyers, doctors, engineers).<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Registration with the relevant professional association.<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400;\">Proof of B2 level proficiency in Catalan.<\/span><\/li>\n<\/ul>\n\n\n\n<p><b>Important<\/b><span style=\"font-weight: 400;\">: individuals entering via this route are <\/span><b>not required<\/b><span style=\"font-weight: 400;\"> to pay the non-refundable state fee of \u20ac50,000, unlike other self-employed residence permits.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"SL_Sociedad_Limitada_la_via_habitual_para_no_residentes\"><\/span><h2><strong>SL (Sociedad Limitada): la v\u00eda habitual para no residentes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><\/h2>\n\n\n\n<p>For those who do not meet the above requirements (non-qualified, unrecognized degrees, or non-residents), the most common route is to create an Andorran company (SL) and apply for residency as a shareholder-director.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Requisitos_principales\"><\/span><h2><strong>Requisitos principales:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Hold at least 34% of the share capital.<\/li>\n\n\n\n<li>Act as the company\u2019s administrator.<\/li>\n\n\n\n<li>Obtain foreign investment authorization.<\/li>\n\n\n\n<li>Pay a mandatory, non-refundable state fee of \u20ac50,000.<\/li>\n\n\n\n<li>Reside in Andorra for at least 183 days per year.<\/li>\n<\/ul>\n\n\n\n<p>This option is the most flexible for non-resident entrepreneurs or those without a recognized university degree. It allows for broad activities such as e-commerce, investment, or non-regulated service provision.<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">If you&#8217;re testing a business idea, have limited income, or want to operate temporarily, starting as a freelance professional might be appropriate \u2014 as long as you meet the residency and degree recognition requirements.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">However, if your project involves growth, risk, or the need to separate assets, the <\/span><b>limited company<\/b><span style=\"font-weight: 400;\"> structure is clearly recommended \u2014 especially for non-residents seeking to establish a long-term presence in Andorra.<\/span><\/p>\n\n\n\n<p>Do you have questions about your specific situation?<\/p>\n\n\n\n<p><span style=\"font-weight: 400;\">Contact our tax team for a personalized analysis and make the right decision from day one.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Andorra, starting a business can be done in several ways, with the main ones being: as a freelance professional or through the incorporation of a limited company (SL). Choosing between these options is not just a matter of simplicity or initial cost \u2014 it also has important tax, legal, and strategic implications. Below, we [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":14047,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-14043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-auge"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/14043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/comments?post=14043"}],"version-history":[{"count":10,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/14043\/revisions"}],"predecessor-version":[{"id":16325,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/posts\/14043\/revisions\/16325"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media\/14047"}],"wp:attachment":[{"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/media?parent=14043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/categories?post=14043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.augelegalfiscal.com\/en\/wp-json\/wp\/v2\/tags?post=14043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}