Risks of investing in Andorra - PSF Consultoría empresarial

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Risks of investing in Andorra

In order to make a really conscious decision it is necessary to know all the different aspects related to it. Many times we forget that an investment in a country has certain risks that although are not too high can lead to headaches if we don't take them into consideration. Today we are going to talk about the specific risks of investin in Andorra.

The main risk is to fill incorrectly the foreign investment request. This usually happens, but an incorrect paper can become a series of problems both for the application for foreign investment itself and for the creation of the subsequent bank account.

Carry out activities prohibited or related to tax evasion. A typical example is to raise turnover from Spain to Andorra being resident in Spain, that is cheating. In the end it will be a source of problems, counting on passing through all the filters that this type of operations implies. Andorra has a low tax situation, but it is not a typical tax haven, that is something that should not be forgotten.

The incorrect register of a commerce, the most common mistake. A commerce here demands to be registered to bill and is not an easy matter. Special requirements are demanded for the tax domiciliation that many companies have problems to satisfy, to be subsequently exposed to extraordinarily limited activities

To summarize, the legislation that has been created in Andorra is rather complicated regarding to foreign investment. The government's claim to attract this type of investment has not been supported either by its own institutions or by additional ones such as banks. Therefore, you have to be careful with all the paperwork that is completed and not be in a great hurry in general with the whole process. In the end the society is always created, so it is better to do it slowly and well than in the wrong way and then have problems. 

 

PS: as the reader will note, the various fiscal problems that could come up have not been considered. This is because, if everything is done right, they hardly occur

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