MCA

The Principality of Andorra

Located at the north of the Iberian Peninsula, between France and Spain, in the heart of the Pyrenees, Andorra is a micro independent and sovereign state. It is one of the smallest states in the world and has an area of 468km². It is characterized by a strong financial system, public safety and privacy unparalleled, a very low taxation and is recognized as a unique natural environment situated in the TOP 3 of countries with the highest life expectancy (84.2 years according to the WHO).

Andorra is a very safe country with an immigration controll thanks to the entry fees’ system. All kinds of begging are forbidden and homeless people are not allowed. There is no organized crime and there aren’t major crimes. Social benefits are very controlled and framed.

 

In Andorra, since July 2012, a foreigner can own 100% of the capital of an Andorran company and be the Director or CEO. Llei 10/2012, del 21 de juny, d’inversió estrangera al Principat d’Andorra.

 

However, this investment is subjected by obtaining an authorization from the Government of Andorra that verifies the identity and origin of the investor as well as the interest of the project. The response time is giving 30 days after entering the application.

With this new economic openness, the country wants to attract foreign investors to come to start businesses and work in the territory, but above all, to businessmen and professionals who want to come to manage their businesses and activities taking the advantage of taxes and social benefits, security of the banking system and the excellent quality of life the Principality of Andorra has.

 

Since immigration authorizations are regulated by quotes, on October 2013 a modification of the law concerning the immigration was published (Decret legislatiu del 26-03-2014 de publicació del text refós de la Llei 9/2012, del 31 de maig, de modificació de la Llei qualificada d’immigració). The two most significant changes are the creation of a new type of authorization called “per compte propi” (self-employed) for these investors who come to run their businesses from the Principality and the modification of the previous permit of passive residence renamed without gainful employment which provides different modalities (rentiers, international business owners, athletes, scientists).

Also, with the aim of standardizing the country internationally, the Principality of Andorra has launched a taxation system for the companies (Llei 95/2010, del 29 de desembre, de l’impost de societats – Llei 17/2011, de l’1 de desembre, de modificació de la Llei 95/2010, del 29 de desembre, de l’impost de societats) and for natural persons (Llei 5/2014, del 24 d’abril, de l’impost sobre la renda de les persones físiques).