Relocating a company to Andorra? These are the advantages you should know.
From the analysis of its tax advantages to the cost of relocating to this new country, providing you with different perspectives that you must consider.
Relocating a company to Andorra? These are the advantages you should know.
When you consider the option of relocating your company to Andorra, the first consideration is whether the costs of this move will be offset by the advantages offered by this new destination.
Key #1 - Savings on the tax rate.
In this regard, the first thing that most people who consider this decision usually think about is whether the savings on the maximum tax rate are worth it.
As you may already know, the maximum tax rate, both for legal entities and individuals, is 10%. This is a significantly lower amount than what can be found in a country like Spain or many others in the European Union, without even considering some agreements that exclude certain tax withholdings, further increasing the profit margin that any professional or entity can have in this country.
Key #2 - There are taxes in Andorra.
When some media outlets report on individuals or companies moving to Andorra, they imply that there will be no taxes to pay. But this is not the case. In Andorra, like in any other country in the world, there are a series of tax obligations that, while lower than in other states, as we have seen before, must be fulfilled.
Key #3 - Reasonable cost of living.
Unlike other countries where the cost of living is very high, the Andorran case is much more reasonable. This makes it an appealing destination for entrepreneurs or professionals looking to relocate the headquarters from which they run their businesses.
In the end, it's all about doing the math. If the tax reduction and quality of life are suitable, the chances of making this decision increase.
Key #4 - Say NO to Double Taxation.
One of the treaties that govern International Law is to avoid double taxation. This means that the taxes you pay in one country cannot be claimed in another.
That is, if the Corporate Tax is paid in Andorra, for example, Spain cannot claim it again. An opportunity that goes a step further with the strategic decision of the country's government, which has signed agreements with many other countries and companies to offer the best possible scenario to its customers.
Key #5 - Less bureaucracy, more happiness.
In addition to the tax benefits it offers, there is another interesting peculiarity to consider. Beyond the low taxes, Andorra understands that one of the major problems faced by many entrepreneurs and business owners is the high level of bureaucracy they are subjected to.
Wasting time, losing patience (and, if you ask us, also losing years of life with so many problems).
What is the cost of relocating your company to Andorra?
Relocating a company is an important decision that requires careful consideration.
It's essential to budget for all associated expenses, including legal fees, administrative costs, and professional services. In addition, companies must consider the ongoing costs of fulfilling their tax obligations.
Despite the initial costs, many entrepreneurs and companies believe that the benefits of moving to Andorra outweigh the initial expenses.
In conclusion, relocating your company to Andorra has the potential to have a significantly positive impact on your clients. The benefits of moving to this beautiful country, such as its favorable tax benefits and other advantages, make it an attractive option for businesses. Although there may be some costs in the relocation process, the potential benefits far outweigh them.
By establishing your presence in Andorra, you can not only enjoy financial advantages but also create a more favorable environment for your clients. Ultimately, the decision to relocate your company to Andorra can lead to a more solid and prosperous future for both your business and your valuable clients.
If you need us to estimate the cost of moving your company, contact us here.
The Plus Serveis i Família Team