Andorra Business Growth: Record Company Creation in 2025

Andorra’s business landscape continued its expansion in 2025, reaching a new high in company creation. A total of 1,565 companies were established throughout the year, contributing to a total of 14,051 active businesses by year-end – a 6.8% increase from the 13,161 recorded at the end of 2024.

The growth was broad-based across key sectors, with particular strength in construction and real estate, hospitality, commerce and business services. This surge in new establishments reflects a sustained period of economic expansion within the principality, according to data released by the Statistics Department.

Looking back to 2019, the financial intermediation, information and communication technologies (ICT) and communications, construction, and industry sectors have demonstrated the most significant growth. This indicates a diversification of the Andorran economy beyond its traditional reliance on tourism and retail.

The number of new registrations – 1,523 – significantly outpaced the number of closures – 633 – resulting in a net gain of 890 businesses. This represents an improvement over 2024, when 1,366 new businesses opened while 640 closed. The increase in new registrations was 11.5% year-on-year, while closures decreased by 1.1%.

Within the broader business landscape, professional, scientific, and technical activities lead with 3,398 establishments, representing a 12.7% increase. Wholesale and retail trade, plus vehicle repair, followed closely with 3,341 establishments, and information and communications with 1,381, a gain of 11.6%. The construction sector also saw notable growth, adding 73 establishments, a 6.6% increase.

Geographically, activity is concentrated in Andorra la Vella (4,817 establishments, a 6.3% increase), Escaldes-Engordany (2,459, a 7.9% increase), and La Massana (1,891, a 6.4% increase), collectively accounting for 65.2% of the national total. However, Ordino experienced the strongest percentage growth, with a 9.9% increase to 745 establishments. Other parishes also showed positive growth: Encamp (1,797), Canillo (1,259, a 6.5% increase), and Sant Julià de Lòria (1,083, a 5.6% increase).

The Andorran government, through its economic development and promotion office, Andorra Business, is actively supporting this growth. Andorra Business provides counseling services to both Andorran companies seeking expansion and foreign investors looking to establish operations within the country. This support is aimed at fostering a more competitive and diversified economy.

The sustained growth in business establishments comes as the country continues to position itself as a stable and attractive location for investment. Recent data highlighted by Andorra Business affirms the principality’s reputation as one of the safest countries in Europe, a factor likely contributing to its appeal for both domestic and international businesses.

While the data points to a positive economic trajectory, the U.S. Department of State’s September 2025 Investment Climate Statement notes that housing availability and affordability are emerging as increasing social and economic concerns for Andorra. This could potentially impact future business growth if not addressed, particularly in attracting and retaining skilled labor.

The legal framework governing businesses in Andorra has been updated in recent years, including revisions to the Law of Companies (October 2007, updated in 2014), the Law of Business Accounting (December 2007, updated in 2011), and the Law of Foreign Investment (April 2008, updated in June 2012, July 2022, and March 2025). These updates aim to create a more favorable and transparent environment for investment.

The continued expansion of Andorra’s business sector suggests a resilient and adaptable economy. The focus on diversification, coupled with government support and a stable legal framework, positions the principality for sustained growth in the coming years. However, addressing challenges related to housing affordability will be crucial to maintaining this momentum.