Andorra is one of the countries with the highest quality of life in Europe. This adds to the already advantageous fiscal environment and hence provides the ideal context for the entrepreneurs or freelancers such as digital nomads to call Andorra home for their business. In fact, in a world where business can be conducted from anywhere and reach any level, it would only be logic to do it from a country where the requirements to do business are the least disadvantageous and where the potential for benefits is the greatest.
Working in Andorra brings a series of characteristics that happen to be very advantageous for the professionals in comparison with other countries in the world. Therefore, the taxes for businesses can go up to a maximum of 10% and the same goes for the PIT; In comparison with other European countries that have the most generous fiscal systems, a difference of 2 and 27 points less is still present and this is not to mention that the IVA is only of 4.5% in Andorra.
Other aspects that make the establishment of one’s professional activity in Andorra is the fact that on one side, the commercial (business) tax can go as low as 2% for those who run activities such as the management of international commerce, the international management of intangibles or again financial investments on the international scale. On the other side, the annual charges for the maintenance of an ordinary business do not exceed 500€. All of this without forgetting the fact that Andorra is one of the few countries to offer optic fiber coverage over all of its territory.
Furthermore, entrepreneurs that operate in the sector of information technology or consulting can enjoy specific fiscal advantages relevant to their fields as this type of business do not require the country of origin to be the one where the business is performed or where the residency is established. On top of the flexibility this entrepreneur status brings, this type of workers has the opportunity to enjoy the fiscal conditions and life conditions that Andorra brings to the table. Moreover, they possess the full powers to control their businesses and act upon factors that affect the subsistence of their company, itself a motive to establish their business in the Principality. This way, an entrepreneur registers the address of its business in Andorra; takes the executive decisions within the country; has a registered office as well in Andorra; has at his or her disposal a sufficient number of qualified workers to perform the work that their business entails; completes his or her executive meetings, the accounting tasks and all of the other principal financial activities.
In the sense, the monthly social security payment for entrepreneurs is of 408€ with the possibility of a bonus or premium reaching up to 50% the first year. This payment must be made to the Andorran Social Security Agency (CASS), a process similar to the one for Spanish entrepreneurs.
If you are an entrepreneur, do not hesitate to contact us so we can advise you on how you can open a business and start enjoying the numerous advantages that Andorra has to offer to both you and your business.