Why Set Up Your Company in Andorra?
Andorra is a rugged, autonomous microstate situated between two giant European countries. The state is a co-principality by the Bishop of Urgel and France’s president responsible for maintaining Andorra as the tax and residency haven. The reason why you’ll never doubt pushing through with your Andorra Company Registration.
However, Andorra shifted from being a tax shelter to a nation with a progressive authority and a very minimal tax burden. They’ve changed the law and educated the people. As a result, business development by international investors in Andorra is far more achievable. These investors enjoy tax benefits associated with starting up a company in Andorra.
As breathtaking as Andorra can be, it also sits high up on the scale. That is because of the practical variables relevant to entrepreneurs and investors. Here are a few of the answers to why Andorra is one of the world’s most promising countries that business people choose to set up their companies.
First in line is Andorra’s strategic location, bordered by Spain in the South and France in the north. Aside from that, Barcelona in Spain and Toulouse in France are only two hours away. Such an ideal location makes Andorra the best possible place to set up a business.
In Andorra, the income per capita is among the highest in Europe. In educational institutions, the entire country has a fast and reliable internet connection. They also have the best and most comprehensive health system and trilingual education.
Tax Agreements With Other Countries
At present, Andorra maintains seven double taxation arrangements. These agreements aimed at eliminating worldwide double taxing circumstances. Aside from that, the setup also introduces a range of steps protecting the parties involved in the tax agreement. Such an agreement exists between Andorra and countries such as France, Spain, Luxembourg, Portugal, United Arab Emirates, and Liechtenstein.
Doing business in Andorra makes it easier for entrepreneurs and business owners to secure citizenship. Yet, on top of citizenship, international investment is highly appreciated.
Taxes In Andorra
In business engagements, tax rates play an essential role. The good thing is that, In Andorra, income tax ranges between 5 to 10%. The corporation tax falls around 10%, which makes Andorra the lowest-rate nation in Europe.
In Europe, as well, Andorra’s contribution to social security is one of the lowest. Value-added tax is 4.5% on purchases, and there are no inheritance taxes as well.
Favourable Banking Policies
Andorra-based banking institutions continue to provide private-numbered bank accounts. This is due to the absence of the national bank in the country.
Banks offer private accounts with the lure of banking anonymity as the main draw. Furthermore, most banks in Andorra don’t even need a minimum deposit. Instead, they charge you a substantial annual fee — secrecy comes with a price.
High-class Residency Options
While Andorra does not provide immediately available residency status or legal residency alternatives, temporary residency remains sought after.
If proven that you’re not detrimental or parasitic to the social security scheme, you may arrange a residency that can last up to ten years.
There are also immigration opportunities available where you only need to spend three months of the year in Andorra.
It is interesting for companies to consider launching or transferring their business to Andorra for the reasons mentioned above. Together with working on cutting taxes and labour costs, each of these advantages fosters the growth of a corporation in Andorra. These forms of economic conditions offer great advantages, which are much more valued by businesses.
To make it workable, 3E Accounting has an in-house team of experts to help you register a company. 3E Accounting can assist you with your company registration in Andorra needs after validating your business plan. We will help you start on the right track and move the startup to the next stage—a multinational organization. Contact us right away so we can lay the best plans for your company registration.