The principality of Andorra has several advantages when setting up or creating a company in Andorra, particularly an international trading company or a financial investment and management company. The principality not only provides benefits to enterprises but also to individuals, either on financial terms or living quality standards. We can detail you the reasons why it is interesting to set up or to create a financial investment and management company in Andorra.
An unbeatable living quality level for setting up a company in Andorra
A strategic location in the middle of Europe
Located at only 2 hours by car from Barcelona and at 2h30 from Toulouse, Andorra’s centric location between Spain and France provides its citizens with many advantages and ideal living quality standards. A nice mixture of French, Spanish, Portuguese and Catalan cultures is typical of this small country.
A secure living quality
Located at the foothills of the Pyrenees, Andorra is one of the countries with the highest income per person in the world. The living quality is also related to the excellent Principality’s infrastructures. In order to attract foreign investors, Andorra also provides a residence permit to company directors who decide to set up a company in Andorra. The healthcare and multilingual education systems are excellent, as well.
A truly advantageous tax system aimed to foster the company creation in Andorra
Andorra is a country absolutely open to business and it actually encourages creating companies and foreign investments.
A preferential tax rate on companies
The tax system in Andorra is very advantageous, especially the rate set on financial investment and management companies. This rate can reach a most 10% and it can be reduced to a 2% rate depending on the type of company and under certain conditions.
These companies’ activity consists of managing loans from investors or managing the financing of companies through participation in the capital stock of companies that do not have their tax residence in Andorra. Setting up a financial management and investment company in Andorra can provide you a tax reduction of 80% on the tax base.
In order to take advantage of this reduction, the company must meet several conditions. The conditions for setting up a financial investment and management company require a minimum capital of €250,000 and it is compulsory for the company to establish its tax residence in Andorra. For small-scale businesses and start-ups expanding operations to Andorra, allotting a substantial amount with a six-digit figure may be unfeasible and unaffordable at times. Given that the company procured an Unsecured business loan or a secured one to designate as capital investment, it would leave room only for the second criterion to be fulfilled. The second criterion being that the company must have hired at least one part-time employee within the country’s boundaries and it must also have an office of a minimum of 20 m2 solely used for its activity. And considering that expansion of business to another country would often need regulation of business with the help of workforce on site, setting up shop would be relatively viable.
Therefore, Andorra is an ideal location for Collective Investment Funds. As their mission is to create benefits for the investors, there is no better located country in the world than Andorra, as it also provides all the conditions necessary to guarantee the success of your business.
If you wish to set up or to create your financial management and investment company in Andorra, our consultants will happily assist you on your business journey.