Andorra since years ago allows the entry of foreign capital without an Andorran partner (100% foreign capital) nor any additional requirements required. Anyone can come to the country to start their business.
Its attractive tax system and its international focus, makes the country an interesting place for companies with an international vocation.
Andorra is a country with excellent political stability, citizen safety and legal certainty. This, in turbulent times like ours is very interesting. It has a quality health system, a triple educational system (Andorran, Spanish and French) and a first class infrastructure.
The corporate tax has a general rate of 10%. This tax rate have only European rivals in countries such as Gibraltar (10%) and Cyprus (12.5%). Even with all, there are three special arrangements with certain requirements, allow lower this rate to 2%. Are cases of exploitation of intangibles (patent-box), international trade and management companies and intragroup financial investment (cash pooling).
The Holding or the SICAV companies have a type 0%.
In Andorra, as a substitute for VAT there is the IGI, with a general rate of 4.5%. There are special types such as super-low (0%) and reduced (1%) among others.
Regarding individuals, the general rate is 10%, but no one have to pay below 27000 €. From there, the rate is gradually increased to reach 7% cash in € 150000. In the event that the income is coming from dividends from a company owned you do not have to pay anything. There are more exemptions in addition to these.
What PSF can do?
From PSF we can handle absolutely all formalities concerning the entry of you or your company in Andorra. Our philosophy is never left alone customer and what if he needs some kind of service that we had not before, give it. Do not be afraid to ask what we can do for you.
We can also put you in touch with andorran customers or any professional who needs to function successfully in the Andorran society. As I mentioned earlier, your put the limit, not us.