There are two types of foundations in the Principality: Private foundations and Public sector foundations. Article 1.2 of Law 17/2023 defines private foundations as follows: “Private foundations are private non-profit entities that irrevocably commit certain assets or rights to the achievement of general interest purposes.” On the other hand, public sector foundations are established with “a majority contribution, direct or indirect, from the state organs, public administrations, and parapublic entities or public law entities of Andorra or public administrations and public law entities from abroad” and “That more than 50% of their founding capital is formed by assets or rights contributed or ceded by the referred entities”. Provided that the Andorran public participation is equal to or greater than one third of the contributions or the founding capital. It is also important to note that associations operate in a similar way to foundations but are distinguishable entities by law. In summary, the main characteristic of the foundation is its purpose, its substance, and raison d’être: the general interest represents the guiding thread that determines both its legal and economic regime, which differentiates it from other legal entities.