Investment in Andorra
Investing in Andorra is one of the best options for entrepreneurs already in the country and also for foreign entrepreneurs, since the Principality has incredible advantages. In one hand, financial and fiscal advantages that are optimal for investors looking for new opportunities to develop their business.
And on the other hand, social advantages that make Andorra one of the states with the best quality of life in Europe, which is why entrepreneurs do not only want to do business, but also live in Andorra.
Investment in Andorra for foreign companies
Andorra has become the favorite destination for foreign entrepreneurs to establish their business. This country, for some years, has been dedicated to the study and development of legal reforms, tax and international agreements to become a regime open to foreign investment. Thus, foreigners wishing to invest in Andorra may set up companies, establish businesses and acquire any type of asset.
In order for a foreigner to set up a company, an authorization must be processed for the type of investment that wants to be done. When the investor has reserved the company name or social name that he wishes to use, he can obtain the authorization of foreign investment. In this case, the competent ministry must ensure that this foreign investment society does not disadvantage free competition or the labor market. If you comply with all the requirements established by law, the authorization to invest in Andorra and to be able to establish a company must be issued within a period not exceeding one month.
Then, the investor can deposit the company’s share capital in any Andorran banking entity. The minimum capital to form a company in Andorra is € 250,000 and it must have at least one Andorran worker. Next step is to set up the company in a public notary. Finally, you must register the company or business in the Registre de Societats (Companies Registry).
Foreigners who wish to invest in Andorra and are not residents in this country, can acquire a property and also obtain administrative concessions on the use of real estate. This also, through the processing of an authorization for a foreign investment in real estate.
Other forms of investment are the contracts of participation accounts, communities of goods, cooperatives or foundations, among others, which also require authorization for other forms of investment.
Investment in Andorra for local companies
The residents of the Principality, to invest in Andorra or establish a company, only need to reserve the registered name or company name. Then, deposit the share capital in any Andorran banking entity, set up the company and register it in a public notary and later in the Companies Registry. You must also have a suitable place to serve as commercial office, for example hiring a virtual office, unless the investor is a freelancer.
In general, investing in Andorra guarantees the employer confidentiality and professional secrecy guaranteed by Andorran law. In addition, the economic, legal and citizen security of Andorra is envied by the rest of the countries in Europe. And as the most attractive feature for investment in the country, there are the lowest tax rates in all Europe. For example, the tax or benefit of the companies is set to a maximum of 10%, depending on the commercial activation.
Personal income tax or income tax can vary between 5 and 10%, and VAT or value added tax (called IGI in Andorra) is only 4.5%.
In any case, if you decide to take the step of setting up or moving your company to Andorra, get in touch with us to receive the best legal services for companies in the Principality, and start your journey with peace of mind.
