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A tax haven within Europe, Andorra is one of the most beautiful locations at an arms length from its neighbouring countries. Complete political harmony and its status as a tax-free country allows investors the opportunities to experience a very inexpensive yet exhilarating environment. Banking and financial management is relatively cheaper and secure. Rates of return on various investments are higher than the UK and the US.
Summary
of business opportunities available in Andorra:
International
Business Corporation (IBC)
| License
fee (annual) |
US$230 |
| Formation/Incorporation
fee |
US$750 |
| Annual
Returns filing fee |
Not
applicable |
| Minimum
requirements and/or size |
Not
applicable |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
Allowed |
| Submission
of annual returns and accounts |
Not
required |
| Corporate
Directors/Managers |
Permitted |
| Company
Secretary |
Permitted
but not required |
| Local
Directors and meetings |
Not
required |
Public
Limited Company
| License
fee (annual) |
US$335-500 |
| Formation/Incorporation
fee |
US$280 |
| Annual
Returns filing fee |
Required |
| Minimum
requirements and/or size |
US$50,000 |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
N/A |
| Submission
of annual returns and accounts |
Required |
| Corporate
Directors/Managers |
N/A |
| Company
Secretary |
Required |
| Local
Directors and meetings |
N/A |
Limited
Liability Companies (LLC)
| License
fee (annual) |
US$250 |
| Formation/Incorporation
fee |
US$250 |
| Annual
Returns filing fee |
Not
required |
| Minimum
requirements and/or size |
N/A |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
N/A |
| Submission
of annual returns and accounts |
Not
required |
| Corporate
Directors/Managers |
N/A |
| Company
Secretary |
Not
required |
| Local
Directors and meetings |
N/A |
Limited
Partnerships
| License
fee (annual) |
US$250 |
| Formation/Incorporation
fee |
US$ 250 |
| Annual
Returns filing fee |
Not
required |
| Minimum
requirements and/or size |
N/A |
| Shareholders/Members |
One
(minimum) |
| Directors/Managers |
One
(minimum) |
| Bearer
shares for overseas/local investors |
N/A |
| Submission
of annual returns and accounts |
Not
required |
| Corporate
Directors/Managers |
N/A |
| Company
Secretary |
Not
required |
| Local
Directors and meetings |
One
local partner (minimum) |
More
information about Andorra
| Currency |
Spanish
Pesetas (SPA) |
| Taxation |
|
| Income Tax |
NONE |
| Social Taxes |
Employer – 13% of salary |
| Employee –
5% of salary |
| Self-employed – 18% |
| Capital Gains Tax |
NONE |
| Property Tax |
1-2% of the acquisition rate |
| Stamp Duty |
NONE |
Other Taxes
Municipal rates |
SPA 15,000 to 20,000 per household |
Employment
Foreigners interested in working in Andorra require a work permit, obtained by employers on behalf of the employees. As per law, a person may not be self-employed until s/he has not resided or traded in Andorra for at least 10 years. Employment permits are issued following the annual quota, which do not apply to temporary or seasonal workers from abroad.
Work permits are usually not available to non-EU or non-EFTA nationals unless either of the two or an Andorran citizen is unavailable for the particular job. The permit is issued only to such individuals who work for an Andorran person or a company incorporated or registered in Andorra.
An application for a work permit must include the photograph, CV, passport, details of property ownership or rental agreements in the home country, a certificate of marital status and a certificate issued by the police of the home country. A medical examination will be further conducted by the CASS. The first application for employment must be accompanied with a fee of SPA 25,000 from the employer.
Business
All businesses, whatever their legal status or constitution, require a trade license. This is issued at the Registre de Comerc in the commune Comu for an annual cost of SPA 100,000.
Passive residency
Passive residents can be defined as those who do not work or form part of the professional class of people in the Principality of Andorra. A new entrant must show the following before being allowed to enter the Andorran territory.
-
An annual income of SPA 4 million (€ 24,000) as the head of the family
-
An annual income of SPA 1 million (€ 6,000) for each dependant family member
-
A proof or certificate of good conduct issued by the authorised office in the country of domicile
-
A health insurance and pension plan
-
Property rental or ownership documentation in the principality of Andorra
-
Submit an amount of SPA 4 million and SPA 1 million per dependent to the government, as a non-interest bearing, refundable
deposit refundable on departure.
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