Accounting in Andorra: obligations, procedures and support

Keeping accounts in Andorra is a legal obligation for every entrepreneur, including anyone who relocates under active residence to develop their business, but its scope depends on the form of operation and the volume of activity. Between the obligation to keep one's accounts and that of filing them, confusion is common, and the rules have changed in recent years. This guide reviews the Andorran legal framework, who is concerned, the concrete obligations throughout the year, the costs to anticipate and how to choose a firm to assist you.

The legal framework of Andorran accounting

The reference law

The applicable framework is Llei 30/2007 of 20 December on the accounting of entrepreneurs, the consolidated text of which was published by decree in 2012 and subsequently amended on several occasions. Its principle is simple: the accounting duty applies to all entrepreneurs, whatever the nature of their economic activity and whatever their form of operation.

The Andorran General Accounting Plan

Companies keep their accounts according to the General Accounting Plan (Pla General de Comptabilitat), the accounting framework specific to the Principality. It sets the principles of recording, the structure of the annual accounts and the valuation rules. This framework has progressively aligned with European standards, which explains the level of accuracy now expected, comparable to that of the continent's major economic centres.

The language and currency of accounting

In practice, dealings with the administration and the official forms are conducted in Catalan, the official language of the Principality, and the accounts must be expressed in euros, which often makes outsourcing to a local firm useful.

Who must keep accounts in Andorra?

In Andorra, a business can be carried out in two ways, and the accounting obligation applies in both cases.

Companies

The most common form is the company, mainly the SL (societat limitada) or the SA (societat anònima), both of which have legal personality. The vast majority of directors choose the SL, because the company limits liability to the company's assets and is subject to corporate income tax at the general rate of 10%, whereas the sole trader commits their personal assets and is taxed under IRPF, whose general rate is also 10%.

The sole trader

One may also operate in one's own name, as an empresari individual, that is, a natural person carrying out an activity on their own account. Whatever form is chosen, the obligation to keep orderly accounts applies from the first euro: recording operations, keeping books and drawing up the annual accounts.

Keeping or filing accounts: two obligations to distinguish

Keeping accounts in fact covers two obligations that must be clearly separated, because they do not weigh on everyone in the same way.

Keeping your accounts

The first obligation consists of keeping your accounts: recording each operation chronologically, keeping your books, in particular the llibre diari (journal) and the llibre d'inventaris i comptes anuals (book of inventories and annual accounts), then drawing up the annual accounts at the close of the financial year. This obligation applies to all entrepreneurs, without exception or threshold, whether operating as a company or in one's own name, from the first euro of turnover.

Filing your accounts

The second obligation consists of filing your annual accounts with the Register for the Filing of Accounts (Dipòsit de Comptes) of the Govern d'Andorra, where they become officially available for consultation. Filing is not the same as keeping, and here the rule depends on the form of operation. For a company (SL or SA), filing is mandatory in all cases, with no amount condition. For a sole trader, an exemption exists, but subject to conditions.

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The case of the sole trader and the €150,000 threshold

For the entrepreneur operating in their own name, the filing exemption has recently been tightened. Since 1 January 2026, it is maintained only if two conditions are met simultaneously: an annual income below €150,000 and attachment to the objective determination regime for business income. If either of the two conditions is missing, filing becomes mandatory again. And even when exempt from filing, the entrepreneur remains required to file their personal income tax return, in which they state their annual turnover: it is this return that allows the administration to verify entitlement to the exemption.

Annual accounts: balance sheet, income statement and presentation

The presentation of the annual accounts is a formal obligation set out in Andorran regulations. Each year, the company draws up a balance sheet showing its position at the close of the financial year, generally 31 December, together with an income statement detailing the expenses and revenue for the year just ended. These documents must provide a true and fair view of the company's actual activity.

The filing of these accounts must comply with the applicable deadlines and the format imposed by the local administration. An error or a delay exposes the company to financial penalties, to increased scrutiny, and even to a partial challenge of the tax year. Rigorous organisation throughout the year therefore remains the key to lasting compliance.

Tax returns linked to accounting

Accounting feeds directly into the periodic tax returns that the company must produce. Depending on its structure and activity, it is subject to corporate income tax (IS), the general indirect tax (IGI, the equivalent of VAT) and, where applicable, the income tax for non-tax-residents (IRNR).

Each return involves an advance payment and an annual settlement, followed by submission to the tax administration. The personal income tax return, for example, is filed once a year, before 30 September, in respect of the previous tax year. Meeting these deadlines determines whether the company's tax position remains in good standing.

Auditing of accounts: when is it mandatory?

The auditing of accounts is not mandatory for every structure. It becomes compulsory once certain thresholds of turnover or of assets recorded on the balance sheet are exceeded. This external examination aims to verify the accuracy of the entries and the reliability of the information provided to the administration.

Even when it occurs only occasionally, this review requires serious preparation, based on supporting documents archived from the creation of the company through to each annual close. Accounting kept methodically limits the risk of reassessment and strengthens the company's credibility with its partners, banks and investors.

Accounting procedures throughout the year

Beyond the principles, Andorran accounting involves a set of concrete operations that shape the financial year:

• the chronological recording of transactions, sales, purchases and internal movements,
• bank reconciliation and updating of the general ledger,
• the maintenance and retention of the accounting books,
• the close of the financial year and the drawing up of the annual accounts,
• the filing of the accounts, where applicable, with the Dipòsit de Comptes,
• the calculation and filing of the periodic tax returns,
• monitoring and advice to manage the business within the Andorran legal framework.

These procedures are complex and time-consuming, all the more so as dealings with the administration take place in Catalan and according to rules specific to the Principality. This is why many business owners choose to outsource all of these operations to a specialised firm.

How much does a company's accounting cost in Andorra?

The cost depends on the volume of activity and the services included. As a guide, an accounting management package for a company with activity, covering administrative, tax and social obligations, starts at around €230 per month. For a structure without commercial activity such as a holding company, the accounts can be kept for about €150 per month. The personal income tax return generally falls between €200 and €400 depending on complexity and the types of income.

These amounts are orders of magnitude, varying from one provider to another. Technically, a business owner can keep part of their accounting themselves, but the books and returns must be presented in a format usable by an accountant and compliant with the Andorran framework, which in practice limits the savings achievable, especially for an active company.

How to choose your chartered accountant in Andorra?

The choice of firm is decisive, as Andorran accounting cannot be improvised. Several criteria deserve attention. A command of the Andorran legal framework is essential to produce compliant accounts and returns, and the practice of Catalan facilitates exchanges with the administration. A Franco-Andorran firm greatly simplifies the relationship for French-speaking entrepreneurs and expatriates. The range of services also matters: a provider able to cover accounting, taxation, payroll management and the legal aspect avoids the need for multiple points of contact.

Finally, support from the company formation stage onward makes it possible to start on the right footing, with a suitable chart of accounts and an anticipated filing schedule. Seeking advice from professionals experienced in local regulations remains the best way to avoid common mistakes and stay a step ahead on compliance.

Key points to remember

In Andorra, every entrepreneur keeps accounts, without exception and from the very first euro. The filing of accounts is systematic for companies and conditional for sole traders. Added to this are periodic tax returns, compliance with strict deadlines and accounts expressed in euros in accordance with the Andorran General Accounting Plan. Rather than dealing with these rules alone, support from a specialised firm makes it possible to secure the keeping of accounts, the returns and the annual filing, and to focus on growing one's business.