Now Andorra is certainly not the best example for a quick company setup. Besides, there is a lot of government red tape and restrictive compliance checks from the local banks. The process for a company set up in Andorra remains complex and time-consuming. This is owed to screening for potential money laundering risks and sufficient substance requirements in the country. It seems contradictory after all the efforts made encouraging companies with substance in the country to now switch over to a 100% form of offshore operation.

E-residencies certainly pick up on the trend of digital entrepreneurs and nomads moving around the world without permanent residency in any country. However it remains to be seen how this can be harmonized with local banking compliance and OCDE proper substance standards for a company’s registered address.

ANDORRE INVEST believes that simplified processes for company setups and an e-company model would be beneficial for Andorra as a potential economic hub for digital companies from all over the world. However, anti-money laundering measures and monitoring tax liabilities for the beneficial owners of such companies are fundamental.

Andorra wants to avoid negative press in this sense. Ensuring that beneficial owners of potential e-companies pay their taxes in their country of tax residency is not an easy task when it comes to people that move around all the time. The concept of digital nomads remains a complex issue as dividends distributed by an Andorran company ultimately are subject to taxation at the place of residency. Not having a tax residency and therefore not declaring any income tax may bring negative attention to Andorra that it wishes to avoid. Government and banks need to present clear rules of the game in order to avoid risks of making Andorra yet again a haven for tax evasion through a new loophole of e-residency.

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In the economic sphere, the commercial volume between both countries in 2018 has increased substantially compared to the previous year. Imports of Chinese products were 46.6% higher than the previous year and imports of Andorran products by China rose 40.7%. These numbers show that growth is stable and fast.

It should be noted that the Chinese high-tech company Huawei is the one that has supplied the Wi-Fi connection in different public places in Andorra la Vella and, together with Andorra Telecom, they are responsible for the installation of the optical fiber.

Another point discussed at this meeting was the interest of China to participate in the construction of the new international airport in Andorra, a project that the Chamber of Commerce is supporting, and which costs more than 500 million euros.

Andorran Minister Jordi Gallardo said that these 25 years of transparency and collaboration between the two countries predict a great future. Topics such as the mutual visa exemption between the two countries and also the recognition of university degrees were also discussed.

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