Wealth diversification and investments in Andorra
Give your wealth a clear direction in Andorra
Wealth is more than a collection of products. It gives you the means to fund the life and projects you choose.
You have created value. The next step is to decide what it should make possible: keeping real flexibility, funding a new project, generating income, investing in Andorra, involving your children or planning a wealth transfer.
We bring together legal, tax, accounting, banking, property and business decisions to build arrangements you can understand, manage and adapt.
A clear plan before products · Responsibilities in writing · Your advisers involved · Follow-up after signing
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The client comes before the products
Before investing, decide what you want your money to make possible.
Coordination by SOL Fiscal
Capital available after a sale, distribution, wealth transfer or several years of growth rarely calls for one solution. Some may need to stay readily available. Another portion can fund a medium-term project. A third can take on more illiquidity if the rights, risks and time horizon are understood.
We start with the decision you need to make, then look at the instruments available.
Keep a reserve you can actually access
The liquidity you need depends on your income, taxes, commitments, living costs and planned projects. Money that is invested, pledged or committed to a fund serves a different purpose from accessible cash.
We establish deadlines and safety margins before discussing allocation. Where required, investment advice and financial management are then entrusted to authorised institutions and professionals.
Selling a business: how much liquidity should you retain before reinvesting?
Give each project its place
A main home, a property purchase, business expansion, a stake in a company or a transfer to your children each has its own timetable, ownership structure and level of risk.
Putting everything into one company or funding it with the same debt does not always simplify matters. We distinguish personal needs, business operations and investment.
Keep the flexibility to change your mind
An investment should be assessed beyond its advertised return. We review information rights, fees, capital calls, guarantees, exit options, what happens if parties disagree and how long it takes to recover your capital.
Five questions to start with
- How much will you need over the next three years?
- Which funds are still subject to tax, corporate or contractual commitments?
- Which assets do you want to manage directly, delegate or transfer?
- How much of your wealth can remain tied up without putting your other projects at risk?
- Who needs to understand the arrangements and be able to take them on with you?
Map the capital
Not all available euros
can be used in the same way.
Before funds move, we trace where they came from and what commitments are attached to them: personal wealth, an operating company, a French holding company, a distribution, sale proceeds, a gift, a loan or a shareholder current account.
Distinguish economic availability from legal availability
Cash shown in an account may belong to a company, be earmarked for operations, secure a debt or remain subject to a commitment. A director’s wish to invest does not make it personal capital.
We check who owns the funds, who can make the decision, how the funds can be used and what documents are needed to support the transfer.
Review the tax history before making a new investment
A share contribution followed by a sale, a tax deferral or suspension, a gift, split ownership or a group transaction can still have consequences. Before any subscription or acquisition, we bring the dates, amounts to track and obligations into the review.
The aim is to make sure the investment decision reflects the full picture of the capital without complicating the project.
Prepare evidence of the source of funds with the bank
Institutions need to understand the source of funds, the chain of transactions and the beneficial owners. We organise the documents with your advisers and bank contact: legal documents, accounts, decisions, evidence of a sale or distribution, and an explanation of the project.
The bank remains responsible for its checks and its decision. Our role is to make the file clear and consistent.
Choose the structure
The company that creates value
does not necessarily need to hold all your wealth.
A separate wealth structure can ring-fence investment from operations, organise family governance or bring several projects together. Its functions, costs and obligations need to justify its use.
Hold assets personally
Personal ownership can remain the clearest option for some assets. It avoids an additional layer of governance and accounting, but needs to be weighed against financing, liability, transfer and shared ownership needs.
Set up a dedicated asset-holding company
A company can hold cash, securities, property or a stake in another company. It has its own accounts, contracts, decisions and obligations. You need to establish who funds and runs it, how its assets are used and how capital can be taken out.
Private use of a company asset must be planned for and addressed explicitly. Personal and company expenses remain distinct when the asset is held by a company.
Invest through a French parent company
A group can keep its parent company in France and create an Andorran subsidiary for a specific project. Financing can take the form of equity, a shareholder loan or a documented combination, depending on each company’s interests and the applicable rules.
Where the case calls for it, we work with the accountant, statutory auditor and consolidation teams. Accounting consolidation does not in itself create a French tax consolidation group, and the Andorran subsidiary retains its own obligations.
Avoid setting up a structure by default
The recommendation may be to keep the existing arrangements, simplify them or set up a single entity. An additional holding company makes sense only if its purpose is understood before incorporation and remains justifiable afterwards.
Investment categories
Private banking, property and businesses
Each asset needs a different assessment.
We assess investments by their role in your wealth, their contracts, liquidity, governance and the work they will require after signing, without assuming one category ranks above another.
Private banking: organise liquidity and investment discussions
A bank can provide custody, offer investment management, finance a project or structure a guarantee. Before choosing an option, check the mandate, instruments, fees, risk level, currencies, exit terms and any pledges.
We prepare the wealth and legal file, compare proposals against your objectives and involve authorised professionals for advice or financial management. Opening an account provides neither tax clearance nor a guarantee of performance.
Real estate: decide on the use before choosing the vehicle
Living in, letting, building, renovating or reselling a property, or taking part in a development, all involve different contracts and risks. We look at foreign investment approval where applicable, taxation, financing, guarantees, planning timelines, marketing and exit.
The intended use and time horizon guide the choice between personal ownership, a dedicated company or a stake in a transaction. An expected capital gain is no substitute for assessing price, costs, timescales and liquidity.
Private equity and direct stakes: invest with clear rights
Taking an equity stake in a company involves more than committing money. We review information rights, reserved matters, dilution, future funding needs, conflicts of interest, governance and exit terms.
For a fund, you need to understand the vehicle, capital calls, term, fees, valuation and transfer options. The label ‘private equity’ alone tells you neither what you own nor when you can get your money back.
Local projects and tailored transactions
Our presence in Andorra helps us understand local players, bring the right people together and assess projects beyond standard products. Availability of any opportunity is never guaranteed.
We examine the sponsor, the economic need, approvals, contracts, financing, guarantees, investor rights and the planned exit. If the file leaves these questions unanswered, the right advice may be to refrain from investing.
An opportunity is worth considering only once its rights,
risks and timetable are clear.
Compare the arrangements
Two arrangements can serve a similar purpose
while conferring different rights.
An asset-holding company and a Luxembourg life insurance policy can both be considered for diversification or wealth transfer. They serve different functions and are not interchangeable.
| Question | Asset-holding company | Luxembourg life insurance |
|---|---|---|
| Who holds the assets? | The company holds the assets on its balance sheet. The shareholder holds shares in the company. | The insurer bears the contractual obligations, and the assets backing them are subject to insurance rules. |
| Who makes the decisions? | The corporate bodies decide in line with the articles of association, their powers and the company’s interests. | Choices depend on the policy, the management arrangement, the insurer, the custodian and the rules governing the investment options. |
| What ongoing work is required? | Separate accounting, corporate decisions, contracts, filings and governance. | Contractual and regulatory oversight of the product, with fees and reporting as set out in the policy. |
| What protection applies? | Company law, contracts, security interests and legal separation of assets, depending on the structure chosen. | Luxembourg law provides, among other things, for the deposit of backing assets and a segregated pool earmarked on a preferential basis for insurance claims. This protection does not guarantee the value of the investments. |
| How does wealth transfer work? | The shares or assets are transferred under the relevant civil and tax rules. | The beneficiary clause and the policy’s treatment must be assessed in light of the residence of the policyholder and beneficiaries. These features do not automatically override foreign taxes. |
| What can it be used for? | Direct asset acquisition, business governance, real estate, stakes in companies or investments decided by the company within its corporate purpose. | Investment within the contractual universe accepted by the insurer and under the rules applicable to the product. |
We compare these arrangements against your residence, source of capital, asset type, desired governance, costs, liquidity and wealth transfer plans. The insurer, custodian bank and authorised professionals deal with the policy and investment options. The firm coordinates the legal, tax and wealth analysis with them.
Luxembourg’s mechanisms for protecting insurance claims guarantee neither returns nor full repayment of capital. The policy, investment options and market risk still need to be assessed.
Financing and liquidity
Financing can accelerate a project.
It can also reduce your flexibility.
What financing makes possible
- Acquire assets
- Develop
- Retain liquidity
What it commits you to
- Repay the debt
- Provide guarantees
- Meet deadlines
A property loan, a shareholder loan, bank financing or a portfolio-backed loan changes income flows and the risks to your wealth.
Understand what secures the debt
We identify the borrower, guarantor, pledged assets, ratios to maintain, early repayment triggers and the bank’s rights. Financing at company level can put the company’s assets at risk. A personal guarantee changes the balance again.
Stress-test a less favourable scenario
A drop in value, margin call, construction delay, deferred distribution or further capital call can all arise. The plan needs to remain clear when things do not go as expected.
We assess these scenarios against available cash and your other projects. The financing chosen must remain compatible with your ability to wait, refinance or exit.
Keep the flows understandable
Equity, shareholder loans, interest, dividends, repayments and personal expenses serve different purposes. The decisions, contracts and accounting entries should all reflect the same transaction.
How decisions are made
To make a decision, you need a clear map,
rather than a pile of brochures.
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1. Map the capital
Owner, source, availability, commitments, debts and deadlines.
What you receiveA wealth map and a checklist of useful documents.
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2. Define the objectives
Liquidity, income, projects, family governance, time horizon and wealth transfer.
What you receiveA ranking of needs and criteria for making the decision.
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3. Compare the arrangements
Personal ownership, a company, private banking, insurance, real estate, funds or a direct stake.
What you receiveAn options paper covering rights, costs, constraints, taxation and points still to confirm.
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4. Review the project
Parties involved, approvals, contracts, financing, guarantees, conflicts and exit.
What you receiveA due diligence checklist, allocation of responsibilities and versions of the documents reviewed.
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5. Implement and follow up
Decisions, fund movements, accounting, filings and future events.
What you receiveA schedule working back from the target date, a final file and the follow-up timetable agreed for the engagement.
Fees reflect the work actually required: scoping, analysis, coordination, legal documents and follow-up. If a meeting and a note are enough, the engagement should stay at that level. If several countries, advisers, banks or investments need to be coordinated, the scope and budget are set before work proceeds.
Our fees should translate into clearer decisions,
usable documents and more time for your projects.
Working with your existing advisers
Your lawyer, accountant, notary
and banker can all stay involved.
They know your wealth history, earlier transactions and outstanding commitments. We can assess the project with them and then carry out the work entrusted to us in Andorra.
SOL Fiscal · Coordination
Share the information each professional needs
With your agreement, we establish what each professional needs. Professional confidentiality, profession-specific rules and conflicts-of-interest checks still apply.
Assign responsibility for each approval
The firm can manage the timetable and bring in its partners in France. Your existing advisers can contribute to the French opinion, legal documents, accounting, audit, financial management or wealth transfer. You know who prepares, who checks and who decides.
Share working practices
We share methods, points of friction and relevant public positions. Lessons from other transactions are general and do not identify the parties. We always reassess a solution used elsewhere before proposing it.
Local presence and professional framework
A local team that moves the project forward
beyond submitting forms.
Our team works in French and Catalan, understands the local steps and brings together the professionals the project needs. This proximity helps us obtain the right documents, ask the right questions at the right time and follow through on decisions.
Matthieu Bech, managing partner, is a legal specialist in French tax law and cross-border procedures. He is an economist registered with the Official College of Economists of Andorra under number 297.
In Andorra, the COEA oversees the economics profession. Its scope includes business, accounting, finance and taxation, subject to applicable law and the activities reserved to other professions. When an engagement involves regulated advice or services, particularly financial investment, the firm brings in authorised professionals.
Our work can continue after funds are transferred. Depending on the agreed engagement, we track obligations, corporate decisions, deadlines, commitments and changes that warrant a fresh review.
Questions to resolve before investing
How much should I keep available before investing?
There is no universal percentage. We start with your expenses, taxes, debts, projects and payment commitments to plan for different liquidity needs over time. Capital earmarked for a near-term project should not be treated as money that can stay tied up for several years.
Do I need an asset-holding company in Andorra?
Not necessarily. Personal ownership, an existing company or a single subsidiary may suffice. We compare governance, costs, tax, accounting, financing and wealth transfer implications before recommending a structure.
Can I invest in Andorra through my French holding company?
Yes. A French company can finance or own an Andorran subsidiary if the project and applicable rules allow it. You need to assess the company’s interests, financing method, any approvals, agreements, effective management, accounting and tax consequences in both countries. Moving the group’s parent company is not a prerequisite.
Can I personally use a chalet owned by my company?
Private use must be planned for and addressed from a legal, accounting and tax perspective. The company’s asset is distinct from the shareholder’s personal wealth. We review the intended use, decisions, any payment in return, financing and consequences in the countries concerned.
Does SOL Fiscal choose my financial investments?
The firm defines the legal, tax and wealth framework, prepares decisions and coordinates the parties involved. Investment advice, portfolio management and regulated financial services are the responsibility of authorised institutions and professionals. We help you ask the right questions and assess how their proposals fit the structure chosen.
Does Luxembourg life insurance always protect your capital?
No. Luxembourg law provides specific mechanisms for backing assets and insurance claims, but they do not guarantee performance or the value of the investments. Review the policy, insurer, custodian, investments, fees, beneficiary clause and tax treatment applicable to each person.
How do you assess a private or real estate investment?
We examine the identity and role of each party, approvals, contracts, financing, guarantees, governance, future needs, economic assumptions and exit. Technical, financial and regulated assessments are entrusted to the relevant specialists. The final decision and investment risk remain with the investor.
How long does it take to put the arrangements in place?
A focused project review can move quickly if the documents are complete. In our practice, allow at least two and a half to three months to arrange an Andorran company formation, including the project, bank, approvals, notary and registrations. This is a planning estimate that depends on the parties involved and the case. It is neither a statutory deadline nor a guarantee. A full wealth structure often takes several stages and settles after the first transactions.
Can you work with my existing advisers?
Yes. We can review the case with them and then implement it locally, or manage the project with approvals divided among the parties. Scope, responsibilities, information sharing and deliverables are agreed at the outset.
What happens after the investment?
Depending on the engagement, we track decisions, contracts, accounting, filings and commitments. A sale, refinancing, capital call, distribution, new use or legislative change may warrant a fresh review. The planned follow-up and budget are set out in writing.
Let’s talk about what you want your wealth to help you build.
You do not need to come with a structure already chosen. Tell us where the capital comes from, what you want to finance, what has already been decided and which professionals are advising you.
We will identify the useful documents, questions to resolve and appropriate scope of work.