Why choosing Andorra for your business?
Posted by tonigago in Andorra information on 16 February 2018
Andorra is a great place to start a business…Why you may ask? Let me explain why. First of all, it’s one of the European countries with most per capita income, also it has a really low life cost, and if it isn’t enough, it has one of the lowest fiscal pressures in Europe. You can have access to all this with the liberalization of investments in Andorra since 2012. There’s another thing you should know…
To make your investment in Andorra you have to make a foreign investment request to the Andorran government and that will give you access to the incorporation of your own company in Andorra. Currently, 97% of requests for foreign investment have been accepted.
First things first
You will need to request this foreign investment permit a certificate of criminal record of the partners that will invest and a copy of your passport. All with the Apostille of The Hague.
Once you have that documentation, you will have to fill in the foreign investment form where they will ask for your data, data of the new company you want to create or of the company that you want to buy shares.
Finally, you will have to give them some economic data of the forecast of income and investments for the next 5 years.
As for the taxes…
VAT is just 4,5%, plus the PIT is just applied at 10%.
There are a lot of vantages of being a freelance or having an autonomous business in Andorra. Nevertheless, most of those advantages haven’t been mentioned, so let’s talk about this.
Working in Andorra brings to any professional a lot of benefits in comparison with other countries in the world, such as the taxes of the princedom society is set to a maximum of 10%, in comparison with other European countries that present higher rates.
Also any worker that is set to work in the technology sector or business adviser will count with the possibility of enjoying benefits from their conditions and terms in taxation.
Plus thanks to the autonomous flexibility status, this kind of work has the opportunity of enjoying these taxation terms and bringing a better life condition to their workers in Andorra. Because the freelance have the absolute control of their business, they can improve a lot of their companies’ points that could help the substance factors and so, justifying the establishment of the company in the princedom.