Residencia Andorra Archives | ANDORRE INVEST

Andorra counts with two new notaries public

Evangelos Hatgiconstantis — Wed, 14 Apr 2021 15:10:03 +0000

On April 9, 2021, the two new notaries, Jordi Junyer and Jordi París, took the oath of office before the Minister of Justice and Interior, Josep Maria Rossell. Both have held mayoral positions in the Principality so they are well known personalities for the Andorrans. From now on Andorra has 5 notaries that will cover the needs of the Andorran users. Let’s remember that since February 20, 2020 the Principality of Andorra had only 3 notaries. Although the president of the Chamber of Notaries of Andorra, Joan Carles Rodríguez Miñana, commented in these days that during that period the situation was under control, the truth is that some delays were experienced as in the procedures for the incorporation of new companies. After the swearing-in ceremony, Jordi Junyer stated: “I believe that right now with 5 active notaries the country can face all the challenges that may arise, because we already have 3 experienced notaries and the 2 new ones enter with enthusiasm and strength, and we believe that we can give the answer that the country needs and deserves”.

We are sure that this news is very positive for everyone since the new notaries went through a strict competitive process where 13 candidates in total participated and they were the ones who obtained the highest qualifications. They have also successfully passed the strict training period. With this we want to emphasize that Andorra now has 5 highly qualified professionals to meet the needs of the country, which will speed up the capacity to process notarial signatures.

Visit our web page of notaries in Andorra where we will update as soon as possible the contact information of the new notaries.

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Andorra is not a tax haven

Evangelos Hatgiconstantis — Wed, 07 Apr 2021 08:49:19 +0000

The Council of the European Union has published on 22 February 2021 the revised list of non-cooperative jurisdictions for tax purposes, also known as tax havens. The changes to this list are based on the ratings published by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes. For the purposes of this list, the EU requires jurisdictions to comply extensively with the international standard for transparency and exchange of information on request (EOIR).

The criteria for including jurisdictions on this list are failure to meet agreed commitments related to reforms to bring them in line with good tax governance objectives, or that have not yet entered into a dialogue with the EU in this regard.

This report is published after the controversy in Spain about the ” escape ” of Spanish YouTubers to Andorra for the alleged sole purpose of saving taxes and the proposal by Spanish politicians for Andorra to be included in the list of tax havens. As expected, Andorra is not on this list published by the Council of the EU as it meets all the criteria of good governance and fiscal transparency.

Andorra, through its head of government, Xavier Espot, has stressed that the proposal from Spain starts “from a false premise that is based on prejudices” and made it clear that Andorra “is no longer a tax haven”. Furthermore, the criteria for granting tax residency in Andorra are clear, strict and must be fully complied with. There are no shortcuts for having large fortunes.

It is important to emphasize that Andorra offers much more than tax advantages: an enviable natural environment, high quality of life, privileged geographical location between Spain and France accessible by road, excellent health care, multilingual education system, high-speed Internet, signed tax information exchange and double taxation agreements… and for all these reasons we invite you to visit us and get to know Andorra better.

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Have a company in Andorra while living in Spain

andorrasolutions — Thu, 03 Dec 2020 10:37:16 +0000

Thanks to new technologies, knowing what is going on in your company no longer depends on being there in person, but on having access to the information. Nowadays it is common to check bank accounts, sales reports, orders, accounts receivable, etc. from anywhere, simply by having a computer and Internet access. For this reason, it is viable to have your company in Spain and live in Andorra, taking into account the fiscal responsibilities that both the company and the administrator have.

Let’s explore the following options:

Living in Spain and having your company in Andorra
The formation of companies with foreign capital is allowed in Andorra, so a resident in Spain can create a company in Andorra, as long as certain requirements are met. It is important to clarify that the company will have tax obligations in Andorra since it is the location of its tax domicile and the investor will maintain its tax residence in Spain, following the tax regulations of his country.
Living in Andorra and having your Company in Spain
By law, every company incorporated in Spain must have its registered office and tax domicile in Spain. The company pays taxes in Spain since its fiscal domicile is there, but, if you are a fiscal resident in Andorra, your personal taxes would be paid in Andorra. It is not that complicated. In Spain, it is possible to create a company by designating a person living abroad as a director.

From our perspective, Andorra offers many more fiscal advantages compared to other countries. The personal income tax in Andorra is one of the lowest in Europe and for this reason it attracts many people. In addition, the corporate tax in Andorra is usually 10% and sometimes less depending on the type of activity in which it is involved. So why not make the most of it by moving both your personal residence and your company to Andorra?.

Another alternative is to create a holding company in Andorra. The Andorran resident has shares in foreign companies, for example in Spain, whose dividends generated are not taxed on income tax and profits generated outside Andorra are exempt from tax. These are part of the advantages that a holding company in Andorra can offer you.

Moreover, there is a double taxation agreement between Spain and Andorra that clarifies this type of international transfer of business activity between the two countries with different residences. In any case, the applicable international taxation should be studied with possible deductions depending on the agreement and the country of origin of these transfers.

Economic substance

It is important to know that a company without substance in a low tax country can be considered as an offshore or shell company. This interpretation can lead the taxation of the company to the tax residence of the manager. This is why we recommend an operation with substance in the country. Find here more information on the requirements of substance in Andorra.

We understand that the information provided is general and may not be fully adapted to your current situation. We therefore suggest you contact our specialists in taxation and company formation in Andorra to analyze your case in depth and offer you the most appropriate solution.

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Andorra advances with new agreements against double taxation

Evangelos Hatgiconstantis — Wed, 16 Sep 2020 15:41:34 +0000

Andorra continues to work on foreign policy issues with new tax conventions to avoid double taxation. Andorran foreign affairs minister Maria Ubach has reported that the next agreements to be signed will be with the Netherlands, Belgium and Hungary. Currently the Principality of Andorra has signed agreements to avoid double taxation with the following countries: France, Spain, Portugal, Luxembourg, Liechtenstein, Malta, United Arab Emirates and Cyprus.

Negotiations are well advanced and the agreements would have already been signed if COVID-19 had not appeared, although this year they should conclude, the Minister reported on September 10 when she presented Andorra’s annual report on foreign action for 2019.

The signing of these new agreements was to be expected soon since exchanges with Belgium and the Netherlands began almost 3 years ago and with Hungary the last contact was in February of this year. These new agreements will open an important commercial exchange between Andorra and these countries, promoting the transit of goods and services.

On the other hand, the minister reported that the agreement with Germany is costing more since they consider that the economic activity between both countries does not justify said agreement, although the minister insists that an agreement with Germany would be positive for Andorran foreign policy. She also indicated that soon, possibly in January 2021, negotiations with Italy could begin and that she sees it feasible to start talks with Austria.

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