Smartinvestment. Andorra: investing money
Best business to do in Andorra
Smartinvestment. Andorra: investing money
After the adoption of the law 10/2012 “On Investments”, which allowed non-residents to become 100% owners of companies, Andorra joins the list of the best countries for doing business in. After only three years of the law being adopted, according to the International Living Index, Andorra is on the list of the 15 countries with best business conditions.
At present, the tax burden on businesses in Andorra is one of the lowest in Europe. Corporate income tax is 10% with the possibility of a reduction of up to 2%. In Andorra, there is a fixed VAT rate of 4.5% which is also one of the lowest in Europe.
The rate of income tax for the population in Andorra is fixed at 10%, which is also one of the lowest in Europe. If the taxpayer’s income per family is not more than 24,000 euros per year, he may NOT pay income tax.
The State Secretary of the Government of Andorra on economic development, Josep Maria Misse, reported to all-andorra.com: “by 2016 the Government of Andorra had already received 1,380 applications for investments in the amount of 193 million euros. Applications worth 175 million euros were approved”. Some companies have already been established and have started working, and by now about 91,000,000 euros have been invested in the Andorran economy. The main investments, according to Josep Maria Misse, in the amount of about 60% came from Spain and France for the first 5 years. However, 20% of investments of this size began to come from Switzerland and Germany in 2015.
Best business ideas. The best money investment
According to the Government, the main trends in Andorra’s economical development are apparant in investments in the opening of a casino in Andorra, the development of logistics through the construction of a heliport and the launch of commercial flights in an airport in neighboring Spain (10 km from the border with Andorra), capable of having international flights.
In addition, the Government of Andorra names the development of a system of “nanotechnology medicine”, IT technologies, know-how technologies (including “scientific clusters”) and private educational infrastructure.
Today Andorra is the best healthcare system in the world, according to the rating of the leading medical journal The Lancet.
Investments in education: in 2016 a branch of the largest international school of hotel business and tourism, Valel, was opened in the Encamp district of the Principality.
Currently, Andorra is the only country in the world whose experience is used in the educational program of GEFI (UNESCO) due to the presence in the country of 3 simultaneous systems of education – Andorran, French, Spanish.
To develop its own education system, the government of Andorra intends to gradually increase the funding given to the University of Andorra in the next 5 years by 30%.
One of the most promising investment opportunities in the economy of Andorra in recent years is investment in the class A office constructing sector. The rapid growth in the number of new companies has revealed a serious absence of quality office space.
Where to invest money? Best business ideas in Andorra
Andorra is one of the richest countries in the world. According to the World Bank, the principality is in the top 20 countries with the largest GDP per capita. This indicator in 2015 was 35,785.50 thousand euros (Statistics Department of Andorra). According to the International living index, Andorra ranks 12th in the world in terms of level and quality of life.
The modern economy of Andorra is built on 3 basic principles: high-tech banking services in the sphere of private banking, mountain skiing and tourism, shopping:
1. Private banking. Under the management of 5 banks of Andorra (with a population of about 70 thousand people), assets are currently worth almost 40 billion euro. According to various ratings, the banks of Andorra are included in the list of the highest-quality banks in the world in the field of private banking.
2. Alpine skiing and tourism. Andorra is the most visited country in the world in terms of the number of tourists per capita, according to World Bank data for 2016. Andorran ski resorts are included in TOP 15 best resorts in the world. In the summer, tourism in Andorra doesn’t die but it transforms into a cycling (including Tour de France), mountaineering and hiking destination (almost 30% of the country is made up of national parks protected by UNESCO). In total, Andorra, with a population of about 70,000 people, welcomes more than 8 million tourists a year.
3. Shopping. Currently Andorra has the lowest VAT rate in Europe (4.5%) which is valid for all types of goods and services. It is this reason that makes it the capital of European shopping, and more than 3 million Spaniards and French people visit Andorra every year on shopping tours.
Having registered a company in Andorra, you get the right to apply for a residence permit with the right to work (in your company) for yourself, as well as members of your family.