BUSINESS IN ANDORRA
Andorra is diversifying its economic model, opening up to foreign capitals and allowing foreign investment initiatives and projects of international character.
This new economic model based on fiscal attractiveness but also on the legal certainty, institutional stability, high quality of life and a polyglot population with an excellent education level.
The tax reform begun in 2010 and has shaped a new tax framework that has allowed the signing of double taxation treaties with major countries and has transformed Andorra in an interesting platform to operate on an international level. The recent foreign investment law allows the creation of companies with 100% foreign capital.
START A BUSINESS IN ANDORRA?
It is a low-tax jurisdiction, with political stability, a good citizen security, legal certainty, in a natural setting, with an excellent health system, three free educational systems (Andorran, Spanish and French), a reference financial market, excellent infrastructures of leisure / sport and a high standard of living.
The country’s economic openness allows companies constitute actions / shares 100% foreign capital.
- Companies taxation – Tax (IS):
- General rate 10%
- Minimum share capital: 3,000 euros
- Special systems (IS) at the rate 2%
- Operation of Intangibles (Patent-box)
- Internacional Trade (Trading)
- Financial investment management companies and intragroup (Intragroup Cash-pooling)
- Special Regime companies holding shares not Andorran (Holding) at the rate of 0%
- Exemptionon the basis of taxation of dividends and results in the transfer of shares
- Elimination of Double Taxation
- CDI’s(Double Taxation Convention): reduction of tax at source. Signed with Luxembourg, France and Spain. Negotiations with other countries to expand the network of CDI’s
- Consumer Taxation – General Indirect Tax (IGI):
- General rate to 4,5%
- Neutral effect on the income statement
- Special types:
- Super-small: 0%
- Reduced: 1%
- Special: 2,5%
- Increased: 9,5%
- Individual Tax – Personal Income Tax (IRPF):
- General rate 10%
- 0 to 24,000 euros: 0%
- 24,001 to 40.000 euros: 5%
- > 40,000 euros: 10%
- Dividendsof Andorran companies
- Capital gains of OIC / shares in Andorra (conditions)
- Deductions/ Reductions: family, housing, pension plans, pensions and compensatory elimination of international double taxation
Interested? GM Consultants accompanies you at all stages of your project