We advise on the creation and management of SICAVs in Andorra to optimize your tax and estate planning.
Securities SICAVs
These companies invest primarily in stocks, bonds, and other marketable securities.
SICAV in Andorra
Which SICAVS are there in Andorra?
In Andorra, SICAVs are classified into three main types according to their investment approach:
1
2
Real Estate SICAVs
They focus on real estate investment.
3
Free Investment SICAVs
They have a more flexible investment policy and can invest in a wider variety of assets, including the above and other types of assets.
These structures allow investors to diversify their portfolios and take advantage of Andorra’s specific regulations and tax advantages.
How much does it cost to open a SICAV in Andorra?
In Andorra, the minimum net worth for SICAVs is €1,250,000, although it increases to €6,000,000 if the investment is focused on real estate and real rights.
No minimum number of shareholders is required to establish a SICAV in Andorra.
The establishment and maintenance costs of these companies are among the lowest in Europe, which makes them attractive for assets in excess of €2,000,000.
A non-resident in Andorra can only own up to 50% of a SICAV, which incentivizes residency in Andorra to maximize both corporate and personal tax benefits.
It is possible to own a complete SICAV or a compartment within one, the latter being the cheapest and most common option.
How are SICAVs taxed in Andorra?
SICAVs in Andorra benefit from a special corporate income tax rate of 0%, as opposed to the general rate of 10%. This means that they are not subject to any tax charge for obtaining income of any kind, thus allowing them to obtain income in Andorra tax-free.
In addition, if the partner of the SICAV is a natural person resident in Andorra, both the distribution of dividends and the capital gains obtained from the sale of shares in the SICAV would be tax-exempt.
Frequently asked questions about SICAVS in Andorra
In Andorra there are three main types of SICAVs: those that invest in transferable securities, those focused on real estate, and those of free investment, which allow a wider diversification in the types of assets in which they can invest.
To incorporate a SICAV in Andorra, a minimum net worth of €1,250,000 is required, which amounts to €6,000,000 if the investment is mainly oriented towards real estate and real rights. No minimum number of shareholders is required for incorporation.
SICAVs in Andorra are taxed at 0% corporate income tax, compared to the general rate of 10%. This exempts them from any tax charge on income earned, both for residents and non-residents. In addition, capital gains and dividends are exempt from tax for residents, and there are no withholding taxes for non-residents.
Andorran SICAVs are ideal for high-net worth individuals looking to diversify their investments and minimize tax risk. Andorra offers a low-tax environment and a sound banking system, making it an attractive option compared to other financial centers such as Luxembourg, especially for those considering changing their tax residence.
