In terms of  Foreign Investment, a new Law 10/2012 was approved on the 21st of June 2012 which came into force on the 19th of July 2012. The Law permits 100% liberalization of investment in all sectors and simplifies the process of incorporating companies to accelerate the market in the short term and open the doors to talent and foreign investment, reviving and strengthening the economy of Andorra by way of diversification, competitiveness, promoting innovation initiatives and a wise use of tax differential.   This new competitive model as a strategic tax platform, has been created to attract foreign investment start-ups, create jobs and wealth, focusing on sectors and recruitment to those businesses that generate higher added value and growth.

Look for details about the company formation with 2% profit tax + residence for the whole family: http://all-andorra.com/invest-in-andorra-100-liberalization/