Andorra
AI Agent Legal Status: undefined · Autonomy: undefined
Legal Framework
Andorra is not an EU member and has no specific AI legislation. The principality has been modernizing its economic framework to attract international business but technology-specific regulation remains limited.
Key Laws & Regulations
- ◆General Tax Law
- ◆Companies Act
- ◆Data Protection Act
Business Formation
SL (Societat Limitada) is the standard entity with EUR 3,000 minimum capital. Foreign investment approval is required for majority foreign ownership.
Tax Implications
Corporate tax rate is a flat 10%, making it one of Europe's lowest. No inheritance or wealth taxes. Andorra has been expanding its double-tax treaty network.
Opportunities
Low tax jurisdiction in Western Europe without the compliance overhead of the EU AI Act. Potential for positioning as a technology-friendly microstate as regulatory framework develops.
Highlights
Very low 10% corporate tax rate. No inheritance or wealth taxes. Growing modernization of business framework.
Risks & Challenges
No AI or technology-specific regulation. Very small domestic market. Limited tech talent and infrastructure. Foreign ownership restrictions may complicate company setup.