Investments and finance management in Andorra
Financial investment in Andorra has become increasingly popular, due in large part to the fact that this country has the lowest tax rate in Europe.
As of 2010, Andorra has its own accounting system, since before that year the accounting obligations of the country’s companies and citizens were minimal. Also before 2010, the investment and financial management of Andorra was guided by the accounting plans of Spain or France. And in some cases, there was even no financial or accounting plan with which companies could be guided to comply with tax obligations.
The advantages of a financial management from Andorra
Financial management is a very useful tool to manage the resources that a company has, in a way that guarantees its proper functioning. The Principality of Andorra is a country full of financial advantages, and especially tax advantages for entrepreneurs eager for new opportunities.
This country has one of the best positions in terms of per capita income in the world, which greatly benefits anyone who wants to make an investment and financial management in Andorra. And therefore, the quality of life is considered one of the best in the world. Entrepreneurs from other countries who want to open up a company in the country can obtain residency too. Other advantages of the installation of foreigners in Andorra are the excellent health system, multilingual schools (with options such as Catalan, Spanish and French) and first class infrastructures.
Investment and financial management in Andorra are very profitable, and this principality offers optimal conditions to investors compared to other markets and countries in that zone. In addition, the financial system of Andorra is highly recognized worldwide, especially for its citizen, economic and legal security.
Investment in andorra
The Principality of Andorra is an independent, democratic and social nation which offers its citizens a dynamic and highly developed economy. This is a feature of great attraction, especially for foreign investment. Its location, considered strategic, allows great communication and interaction with other important countries of the European continent, such as France and Spain, which are its geographical neighbors; but also with Portugal, the United Kingdom and Germany. The property investment is also a sector to consider in the country.
In general, investment and financial management in Andorra are highly benefited, because this is one of the countries with the lowest taxation in the world, if we don’t take into account tax havens. For example, the tax or benefit of the companies is set to a maximum of 10%. IRPF or income tax can vary between 5% and 10%, and VAT or value added tax is only 4.5%.
For the investment and financial management companies in Andorra, it is essential to establish a tax residence in the country to opt for the reduction of almost 80% of the tax base. The minimum capital to form a company in Andorra is € 250,000.
