- June 2, 2015
- Posted by: andorrasolutions
- Category: Andorra economy
For foreign investors who are thinking to start a business in Andorra, below are ten reasons that make unresistable to consider moving to the Principality in the middle of the Pyrenees:
- The Maximum Andorran Business Tax Rate Is 10%
Corporation tax is placed at a sliding scale from 2 to a maximum 10% tax rate. Compared to France and Spain it is much lower. For France 25% is the corporate tax rate. For companies with profits below 42,500 EUR, the lowest is 15%. Spain’s typical average is 25%. There is a sliding scale 15-25% tax depending on various incentives for small start up companies.
- The General VAT In Andorra Is 4.5%
And in Spain? A shocking 21%: more than 15% less. Andorra has the lowest value-added tax rate (VAT or sales tax) across Europe.
- Incentives Of Up To 80% For Management of Certain Intangibles Activities
In Andorra, corporate taxes of companies dedicated to certain activities may be reduced from 10% up to 2%. These advantages are offered for Andorran businesses related to concessions or authorisations to use, assignments, licences or transfers of patents, utility models and computer programs protected by copyright.
- Andorra’s Social Security (CASS) Charges Represent Only 22%
The Principality has a very low figure compared of social security contributions being just 22%. A Spanish gross salaryfor businesses with a fiscal office pay 32% in charges.
- Renting An Office Is Very Cheap in Andorra
For only 500€ a month you can rent a modern office in the center of Andorra. This is nothing close to what you would pay for an office in Barcelona or Paris.
- Andorra’s Municipal Taxes Are Between 500€ – 1000€ Annually
In Andorra they know how important it is for businesses to have low municipal charges that help increase their benefits.
- The Agreement Of Double Tax Treaties With France And Spain
These agreements signed in 2015 and they are a dream come true for foreign investors now that they won’t have to deal with the double taxation with France and Spain.
- 100% Optical Fiber Coverage In Andorra
Although fibre has recently become more available in Europe, since as early as 2015 Andorra had no DSL connections. You will only connect online through optical fiber. For fixed broadband speeds, Andorra ranks 6th globally. The average download speed for the Principality is 211.27 Mbps with average upload speeds of 96.19 Mbps.
- Andorra’s Official Currency Is The Euro
Even though Andorra’s an independent country, it not only uses euros, but the Principality also has the power to coin its own euros.
- Advanced Infrastructure and Qualified Labor in Andorra
Andorra is attracting more international more qualified workers in the EU moving to this little country in the Pyrenees. In 2019 Andorra had second highest employment rate of any European country.
Read more about the fiscal advantages in Andorra here