Accounting in Andorra: a company’s obligations

Accounting in Andorra: which books must be kept?

Orderly accounts suited to the activity, recording all transactions in chronological order: Llei 30/2007 on the accounting of entrepreneurs requires them of all companies and of any individual who carries on a commercial or professional activity (art. 1 and 2), including the sole trader. Two books are compulsory (art. 13 to 15):

• the journal, which records transactions day by day, or in groupings covering one month at most;
• the inventory and annual accounts book, which sets out the opening balance sheet, the quarterly trial balances, then the year-end inventory and accounts.

Accounting documents, correspondence and supporting documents are kept for six years from the last year end (art. 7). The accounts follow the general accounting plan approved by Decree 479/2025 of 23 December 2025, applicable to financial years beginning on or after 1 January 2025, which replaces the 2022 plan; banks and other entities of the financial system are excluded from it. The law on companies adds two internal registers: the register of shareholders, which records each shareholder’s residence and type of residence, and the register of beneficial owners, which is communicated to the Companies Register (Llei 20/2007, art. 21 and 21 bis).

Annual accounts: preparation, approval, filing

The annual accounts comprise the balance sheet, the profit and loss account, the statement of changes in equity, the cash flow statement and the notes; they give a true and fair view of the assets and liabilities, the financial position and the results (Llei 20/2007, art. 71). The abridged format, which dispenses with the statement of changes in equity and the cash flow statement, is open to a business that, for two consecutive financial years, meets at least two of these conditions: assets of no more than €3,600,000, annual revenue of no more than €6,000,000, no more than 25 employees (2025 general accounting plan).

1. 1

   Preparation by the directors

   They draw up and sign the accounts and the proposed appropriation of the result within the six months following the year end (art. 71).

2. 2

   Approval by the general meeting

   The ordinary general meeting is held every year, within a period set by the articles of association that cannot extend beyond six months after the start of the following financial year (art. 30). It allocates 10% of the profit to the legal reserve until that reserve reaches 20% of the capital (art. 76).

3. 3

   Filing with the register

   All SAs and SLs file their accounts online, on the tax administration’s oficina virtual, within the deadline set for the corporate income tax return (regulation of 16 April 2014, art. 44 to 46). The signed originals are kept at the registered office for six years.

An audit becomes compulsory when, for two consecutive financial years, at least two of these thresholds are exceeded: €3,600,000 of assets, €6,000,000 of turnover, 50 employees. It is also compulsory when turnover exceeds €10,000,000 for two consecutive years (art. 72). Only auditors and audit firms entered in the Register of Auditors may carry it out (Llei 30/2025, art. 9).

Corporate income tax: return and payment on account

Corporate income tax (IS) is 10% of profit. Since 2024, the tax after deductions cannot fall below 30% of gross tax (Llei 95/2010, art. 41 and 43). Its deadlines are set by the regulation on the tax:

• return and payment: in the month following the six months after the year end, i.e. in July for a financial year ending on 31 December. The return can be filed earlier, without bringing forward the payment deadline (art. 45);
• payment on account: during the ninth month of the financial year, i.e. in September for a calendar financial year, equal to 50% of the tax for the previous financial year; no payment on account is due for the first financial year of activity (art. 37);
• means of payment: direct debit from the company’s bank account or a named bank transfer to the Govern (art. 47).

A company that fails to file its returns for two consecutive financial years is provisionally removed from the tax register: its NRT is revoked, the decision is published in the BOPA and the Companies Register blocks any new entry (Llei 95/2010, art. 48; regulation, art. 42 and 43). Rates and regimes are detailed in our guide to corporate income tax in Andorra.

IGI: how often are returns filed?

IGI is declared and paid according to the previous year’s turnover (Llei 11/2012, art. 78):

The taxable person declares the start, any change and the end of their activity, issues invoices for all their transactions, keeps registers of the invoices issued and received and retains them throughout the limitation period (art. 76 and 77). Thirty days after a formal notice that has gone unheeded, the administration may assess ex officio the tax on a missing return (art. 79). Small businesses can opt for a simplified regime up to €100,000 of turnover. See our guide to VAT in Andorra (IGI).

Tax calendar of an Andorran company (calendar financial year)

Example of an SL already trading, whose financial year coincides with the calendar year, with turnover of less than €250,000 and a paid director. Only the deadlines found in the texts are shown; the exact day of each is set by the administration.

Throughout the year, CASS contributions are added, calculated on a monthly basis. Above €250,000 of turnover, add the April and October IGI returns; from €3,600,000, they become monthly.

Companies Register: amendments, transfers and fees

• Any amendment to the articles of association, including the capital, requires a notarial deed entered in the Companies Register; the notary sends it within 15 days (Llei 20/2007, art. 66).
• The appointment of a director must be submitted for registration within 30 days of its acceptance (art. 47); a company that has become a single-member company must have this registered within one month (art. 2).
• Transfers of participations or shares are made by notarial deed (art. 20) and, for a foreign investor, subject to prior authorisation: see the foreign investment authorisation.
• Each year, a company with no open business licence pays a fee of €851 (SL) or €935.50 (SA); with a business licence, only the €214.21 contribution to the Register of Commerce and Industry is due, according to the Govern.
• A foreign-owned company proves its effective activity after 18 months, then provides the supporting documents that the ministry asks for.

Gestoria, accountant, lawyer: who does what?

In Andorra, a gestoria is a firm that handles the administrative, accounting and tax formalities of businesses and individuals. Nothing obliges you to use one: the law allows entrepreneurs to keep their accounts themselves or to entrust them to the person of their choice (Llei 30/2007, art. 3). But it specifies that this delegation does not relieve them of their responsibility: a late return or filing remains the responsibility of the company and its directors.

Around a company, each professional has their own role; only the notary is required by law, at the key stages.

How to choose your gestoria

Before choosing a provider, ask them these questions:

• Which tasks are included: bookkeeping, IGI, IS, filing of the accounts, CASS, payroll, company secretarial work?
• Who keeps track of the deadlines, and how will you be notified?
• Will you have direct access to the tax administration’s oficina virtual and to the documents filed?
• Can the provider work in French and point out the French implications to you, or do you need a separate adviser?
• How are one-off services, such as an amendment to the articles of association or a tax audit, invoiced?

How much does a gestoria cost?

Fees are freely set: none of the official sources consulted sets an amount, and we do not publish any. The price depends mainly on the volume of invoices and entries, the frequency of IGI returns (half-yearly, quarterly or monthly depending on turnover), the number of employees for payroll and the CASS, and one-off services, such as an amendment to the articles of association or a tax audit. Ask for a written quote that separates the annual flat fee from the services billed individually.

Our site does not recommend any professional. For setting up the company itself, see how to set up a company in Andorra; for the reality of the activity, the economic substance of an Andorran company.