Investing in Andorra with 100% of foreign capital is possible
This country has established itself as a renowned investment destination thanks to the new Foreign Investment Law.
Andorra is currently immersed in an economic openness process, due to which it is possible to invest 100% of foreign capital (meaning that no Andorran partner is needed), and contribute to diversifying the country’s growth model. New corporations can be constituted, which grant the possibility of obtaining the residency permit. The procedure for obtaining the non-profits or passive residency permits has been simplified, as well as those for entrepreneurial, sportive, cultural or scientific purposes.
The completion of the Andorra's tax reform, the opening process, and the economic accreditation, have been the result of the conventions signed to avoid double taxation – first with France and Spain, thereafter with the rest of countries–. From the unification of all indirect taxes into a General Indirect Tax (IGI, equivalent to the Spanish VAT or the French TVA) with a basic 4.5%, and an advantageous Personal Income Tax (10% maximum). These amendments have given solidity to all the investments made in the country, avoiding the tax haven connotation.
1. Benefits of investing in Andorra
Andorra stands out for its political and economic stability, as well as its forward-looking approach to both businesses and finances. Here you will find a safe and secure business environment that fosters growth and prosperity. In addition, Andorra's favourable tax regime, with its low tax burden and competitive tax benefits, attracts international investors looking to optimise their profits.
(Read the following article if you would like to know about the advantages of investing and living in Andorra).
2. Main characteristics of the New Foreign Investment Law in Andorra
The new Andorran’s Foreign Investment Law has paved the way for international investors, eliminating restrictions and simplifying the process of stablishing and running companies in the country. At IS21 accounting, tax and administrative consultancy, we are always up-to-date with all local regulations and rules, this allows us to offer you an expert and customised advice at every stage of your investment.
3. Types of investments accepted in Andorra by the new law
Andorra offers a suitable environment to increase your capital. In addition, startups and entrepreneurial investments are booming, our experts’ team can guide you through every step of the process.
I. Real estate investments
Andorra has opened its doors to real estate investments. To make a real estate investment, a minimum investment amount is required, which varies according to the location and property type. Moreover, it is necessary to fulfil the legal and regulatory requirements concerning the acquisition of properties in Andorra. Do you want to know more?
II. Financial and banking sector investment
Andorra is known for its reliable and secure banking system. Investors who wish to participate in this sector must comply with the requirements set by the Andorran financial authorities, which include the submission of an application, proving an adequate financial capability, and meeting the regulations to prevent money laundering and terrorism funding.
III. Strategic sectors investment
Andorra promotes investments in strategic sectors such as, technology, renewable energies, tourism and health. To make investments in this fields, it is required to present a sound plan and demonstrate the financial capacity to back up the proposed investment. Besides, according to the specific sector, additional requirements may apply.
IV. Startups and entrepreneurship investments
Andorra is a fertile ground for the growth of startups and entrepreneurships. Investors interested in financing startups should evaluate potential projects and establish investment agreements. It is advisable to have experts supporting you in the investment process, to ensure a solid and strategic approach, such as, our accountancy, tax and administrative consultancy.
V. Service sector investments
Andorra also offers investment opportunities in service sectors, like health, education and consultancy. Investors must fulfil the specific legal and regulatory requirements for each sector, which may include obtaining the appropriate licences and permits, as well as demonstrating experience and financial capacity in the respective field.
4. Conclusion
Andorra has established itself as an attractive investment destination thanks to its new foreign investment law. With tax benefits, with a stable business environment, and opportunities in diverse sectors, Andorra is a favourable place to invest. Our consultancy in accounting, tax and administrative, is here to provide you the needed support and advice at each stage of your investment. Contact us today and start taking advantage of investing in Andorra.
At Integral Serveis 21, we offer support from the initial business idea to creating and growing your business venture.
- Processing foreign direct investment permits (for non-residents)
- Applying to reserve the company name
- Drawing up the articles of association
- Incorporation, modification, dissolution and liquidation of the company
- Drawing up the company minute book
- Appointment of officers, capital increases, powers of attorney, change of registered office, etc.
- Opening a business
- Applying to open a business
- Obtaining the Tax Registration Number ( NRT )
- Registering with the Social Security System
At Integral Serveis 21 we also meet day-to-day operational requirements.
- Helping to find premises or the registered office
- Management and control of official and commercial correspondence. Immediate email notification
- Procedures with relevant bodies/ institutions
- Processing changes in vehicle registration
- Assistance with customs formalities
- Procedures with FEDA (electricity company), Andorra Telecom, etc.
- Help finding staff
What do we offer you?
IS21 Integral Serveis Setting up a business
We offer support from the initial business idea to creating and growing your business venture.
IS21 Integral Serveis Invest in Andorra? At IS21 we make it possible!
We offer you the advice you need to get the maximum return on your capital and enjoy all the benefits offered by the Andorran tax model. Real estate investments, bank assets or through a company, at IS21 we will offer you personalized support to materialize your investment projects, with 100% foreign capital, in an agile, comfortable and safe way.
IS21 Integral Serveis Experts in the processing of tax residences in Andorra
At IS21 we specialize in processing the residence permit (passive or active) that is needed to become a tax resident in Andorra and enjoy all the benefits that the country in the Pyrenees offers. We offer tailor-made solutions for entrepreneurs, retirees, elite athletes and liberal professionals.
IS21 Integral Serveis Support service: fiscal & accounting management
At IS21 you will find the comprehensive support you need to start a new life in the Principality and benefit from the fiscal and economic model offered by the country in the Pyrenees. We are a company aimed at companies and investors, both Andorran and foreign. We will accompany you throughout the process of setting up and integrating your company in Andorra, providing you with different design and optimization services for your corporate structure.
