The small Western European principality of Andorra, located between Spain and France, provides favourable conditions for conducting business. The region welcomes foreign investment, and local regulations permit complete foreign ownership of companies. The applicable law was enacted in 2012, overturning the previous restriction that capped foreign ownership at 49% of the capital.
ADVANTAGES OF REGISTERING A COMPANY IN ANDORRA
This jurisdiction boasts several noteworthy advantages:
- Prestige and excellent reputation in business circles.
- Economic and political stability.
- Convenient location for conducting business in Europe.
- One of the lowest tax rates in Europe (corporate tax is only 10%, and with CashPooling mode it is possible to get an additional bonus of 80%! Sales VAT is 4.5%, and there is no inheritance tax).
- Absence of foreign exchange and stamp duties.
- Flexible, favourable banking policy.
Andorra, functioning as a post-industrial state, derives its primary income from tourism, with the banking sector, service industry, and trade in luxury goods also playing pivotal roles. Noteworthy is the minimal state intervention in economic management, with few restrictions on private enterprises.
