The little country in the middle of the Pyrenees offers many advantages for foreign investors who are thinking to establish their business there. Here are 10 reasons that make it hard to resist:
- The maximum tax rate for businesses is 10%
So you have an idea of what this means, the corporate tax for big companies in Spain is 30%, and 25% for start-ups.
- The general VAT is 4.5%
And in Spain? A shocking 21%: more than 15% less.
- Incentives of up to 80% for international commerce
In Andorra 80% of the corporate taxes of companies dedicated to certain activities may be waived. These advantages are offered for businesses that exploit brands at an international level, hold participations in foreign companies or are involved in international trading.
- Social charges represent only 14%
A very low figure if you compare with the 32% charges on top of gross salary that businesses with a fiscal office must pay in Spain.
- Renting an office is very cheap
Nothing close to what you would pay for an office in Barcelona or Paris. For only 400€ a month you can rent a modern office in the center of Andorra.
- Municipal taxes are less than 500€ 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
Both agreements signed earlier this year 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% coverage with optical fiber
Did you know that in Andorra there are no DSL connections? You will only connect online through optical fiber. Get ready to enjoy more than 100mbps symmetrical!
- The official currency is the Euro
Even though they are an independent country, Andorra doesn’t only use euros, they also have the power to coin their own euros.
- Qualified labor and advanced infrastructure
Every time there is more qualified workers in the EU moving to this little country in the Pyrenees. It must be for a reason.
Read more about the fiscal advantages in Andorra here