Key points for investing in Andorra: compliance with local legislation - PSF Consultoría empresarial

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Key points for investing in Andorra: compliance with local legislation

Before starting the article as such, I want to make an appreciation. This text is directed especially to the people who have a great trajectory working with the principality, which are overwhelmed in many occasions before the great amount of changes that are happening in the country. If you are a person who is thinking of living in Andorra and you come from the rest of Europe you will not understand many things about this article.

In short, Andorra has changed a lot, it no longer works the way it was done only a few years ago and that is confusing many people. In times almost exclusively worked in cash, with no need for social security affiliation and also without proper supervision. That is not like this from a few years. The problem comes when many entities or people try to do things in a way that is not now possible, that is when problems come because of the difference between expectations and reality. We are bored with clients with inspections and problems that have committed irregularities that once were legal, not now, but refuse to adapt.

Andorra is no longer a fiscal paradise, this has to be very clear if you want to invest in the country. With that said, there are some ridiculous requirements when compared to Spain, but there are some requirements to accomplish. We have spoken several times about them, there is a small corporation tax, some contributions to the social security of the country ... In general a series of small legal requirements but that have to be fulfilled. Remember also that there is a double taxation agreement and the income received in Andorra by European residents has to be declared and, if not, the Spanish government sees it directly. Perhaps the fine in Andorra are 150 sad euros, but in Spain can be really huge scares.

In short, there are small requirements but they have to be fulfilled, please, that we have a bad time.


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