Why you should consider Investing in Andorra
Do you know why UNIQ Ventures was strategically created in Andorra?Andorra is a modern country that benefits from a unique and stable political framework, and a dynamic economy, which make it a developed and attractive State for investments.
It is remarkable for its history, its social and natural environment, and, currently combines a program of reforms based on the opening of the economy to foreign investment, and on fiscal homologation and cooperation.
A short history of Andorra…
1278 — A Peace treaty signed by the count of Foix [France] and the Bishop of Urgell [Spain] puts an end to the dispute over the territory of the Valleys of Andorra and the Principality of Andorra is established. A new country emerges with a unique institutional functioning: two co-princes.1993 — Andorra adopts its own Constitution in order to be internationally recognized as an independent and sovereign nation, and becomes a member of the UN and the European Council.
›› The Andorra Tax System
Andorra is not a tax haven, but it is true that there are some benefits compared to other countries:
›› Corporation Tax [CT]: maximum of 10%. There is also a reduced tax of 2% for companies involved in certain types of activities such as international trade (eg digital companies), investments, etc.
›› Personal Income Tax [PIT]: could be 0% because it starts to be applied in salaries over 24.000€, increasing to a maximum of 10% on the highest salaries. For example, a 50.000€ salary tribute a 2,4% in Andorra, while in Spain this salary would be tributing 22,69% (10x more). That´s why Andorra facilitates and promotes hiring people.
›› Value Added Tax [VAT]: 4,5%, which is the lowest VAT in Europe. For example, in Spain there is a 21% VAT (4,6x more).
›› Social Security: 22% where 6,5% is payed by the employee and 15,5% by the company, while in Spain is over 30%.
›› There is no inheritance and succession tax.
For all these reasons it is very interesting for digital companies to consider starting or moving their business to Andorra. Specially for marketplaces, e-commerces, Software as a Service (SaaS) or gaming companies, etc.
All these benefits facilitate creating a company in Andorra, collaborating in reducing taxes and labor cost. This type of fiscal conditions bring great benefits that are even more appreciated by companies belonging to the technology sector.
›› Tax Rates in Europe
›› Opening to foreign capital
In 2012, Andorra approved a law to open the economy to foreign companies and investment:
›› Investors can increase their capital up to 100%.
›› The time frame for foreign investment applications has been reduced to one month.
›› Legal requirements and residence
To set up a company in Andorra, there are very similar requirements to what you will be asked in any other European country. Every company based in Andorra must have a registered office in the country, as well as an administrator, and all of them are considered residents. Therefore, the offshore model entity that has been so much in the media the last years is completely discarded, especially linked to tax havens.
›› A competitive business environment
›› Culturally open population to businesses and foreign investors.
›› Customs union with the EU in relation to nonagricultural products.
›› Committed to the OCDE´s International Financial Transparency standards [24 TIEA signed].
›› Double Taxation Convention [DTC] signed with France, Spain, Luxemburg, Liechtenstein, Portugal, UAE and Malta.
›› Ongoing negotiations to reach an association agreement with the EU.
›› 100% of homes and businesses log on to the Internet.
›› Extremely competitive price of electricity for companies.
›› Barcelona
Barcelona is less than 210 km away from Andorra, what makes going there very fast and easy.
That´s why UNIQ Ventures´ second office is located in Barcelona Tech City, where we share our workplace in an innovative atmosphere at the port.
›› Tourism
Andorra is an important touristic center, famous for its ski resorts and for shopping, that hosts millions of visitors every year.
›› Some studies show that a lot of people choose Andorra as a place to shop.
›› Other people´s purpose of visit is connected with leisure, health, wellness, sport and outdoor activities.
›› Innovation
The Andorran Government is interested in positioning Andorra as an intelligent destination. With the goal of establishing it internationally recognized in that way, they started to promote the creation of technological projects with added value which contribute to the development of the innovation sector within the frame of the economic opening process.
UNIQ Ventures is a fintech venture builder, a startup factory that creates innovative companies in order to transform the industry. Our mission is to create the future financial services and make them accessible for the rest of the world.
To make it possible, UV has an in-house specialists team (engineers, product managers, analysts, designers and marketers) who form/test hypotheses, build prototypes, run experiments, and execute on launching a venture. Once the business model is validated, UV inject more investment and hire an entrepreneurial team to take the startup to the next level, a global company.
If you are interested in creating a technological company in Andorra do not hesitate to contact us: hello@uniq.ventures
Bibliography:
- ACTUA | www.actua.ad/es
- Departamento de Estadística de Andorra; Ministerio de Turismo y Comercio.
- Ministerio de Asuntos Exteriores de Andorra, Andorra Telecom, Forces Elèctriques d’Andorra.
