- May 24, 2015
- Posted by: andorrasolutions
- Category: Andorra economy
You work as an independent service provider in the IT sector? It could pay off to establish your company in Andorra. Andorra, with its many tax benefits, such as a 10% maximum corporate taxation and low income tax for residents in the Principality, is very attractive for companies that can develop their activities in Andorra with the resulting profits not being taxed in your clients’ countries.
The number of “virtual services” is increasing, and many of the entrepreneurs engaged in IT, or more generally, in the business consulting sector, are not necessarily dependent on their country of origin as a place of business or residence. On the contrary, more and more freelancers are moving around geographically, for professional or personal reasons. Naturally, tax aspects are making Andorra as a location for your tax residence worthwhile. However, it is recommended to plan and arrange further steps with a tax advisor. The days of low-cost “off-shore” corporations are over and they are no longer appropriate considering the numerous rules and barriers that have been implemented for years by both governments and banks from countries with high tax rates as well as from those with low ones in the past years.
Therefore, you should be aware that the relocation of business activities is mostly associated with the relocation of the residence of the entrepreneur / beneficial owner of the business. If you take this into account very seriously, then Andorra may prove to be a really interesting opportunity for you. We would be glad to advise you on this issue and provide you more details.