BUSINESS IN ANDORRA

About Andorra and the investment attractiveness of this country:

         The Principality of Andorra is a France and Spain neighbouring state located in Pyrenees. Its culture is absolutely European, which is nourished by French and Mediterranean gastronomy. Andorra is known for more than 300 kilometres of ski slopes and the Pyrenees’ climate, attracting millions of tourists all around the globe every year. But its attractiveness is not only about touristic activities. Andorran foreign investment climate had experienced a revolutionary change since the beginning of 2012^th produced first by the approval of 9/2012 Act of May 31^th for Immigration Affairs and then 10/2012 Act of June 21^th for Foreign Investment both of Andorran General Council. Thereafter the liberalization of the foreign investors’ participation in Andorran enterprises took place, unlike what happened before the new regulation. New typologies of residence permits were created as well as the regulation of passive residences were implemented, favouring all of that the foreign investment in the Principality of Andorra.

         It is remarkable its fiscal climate for foreign enterprises dedicated to international trading because of special tax rate of 2% in case of the Corporate Income Tax, whereas that the general rate is only 10%.

         Comparing to the Spanish fiscal climate where the general rate is 28% during the 2015, whereas that Andorrans as generally pay 10% and in some can grant 80% rebate when participating in International Trading Transactions i.e. paying 2% in case of Corporate Income Tax.

         Furthermore the dividends distribution is not subjected to any tax liability in Andorra, so that the international shareholder of Andorran enterprise is not required to pay any taxes, notwithstanding its liabilities in front of the country of its residence if different to Andorra.

         Before the approval of these rates Andorra had no regulation regarding neither Corporate nor Personal Income Taxes, even so the difference compared to other countries is notorious. This fact empowers the establishing of residence in Andorra with the aim of diminish a fiscal bargain over certain investors interested in granting fiscal advantages.

Our firm’s role in Andorra:

Our firm provides legal advice in tax, corporate and immigration law, which are projected over the whole entrepreneurial activity cycle starting from the enterprise’s registration, necessary formalities to attend its formal and material liabilities before Public Administration including its participation in commercial activities.