Tax advisor in Andorra

Opening a business in Andorra

From economic opening, Andorra allows foreign investors to establish or invest in pre-existing companies in the Principality. A company can be created with the 100% of foreign capital dedicated to endless economic activities.

Form a society in this country it involves a lot of advantages, although it stands out especially in terms of taxation compared to Spain or other countries:

• 10% of general type of corporation tax
• 2% in exploitation of certain intangible assets
• 15.5% of social contributions per employee
• Lower indirect taxes in Europe (IGI, 4.5%)
• Company maintenance fees of around €1,000 per year

For creating a company in Andorra need follow some very important steps but also personalized, for which it is best to have holistic professional services in the field provided by experts. At Abast Global we will take into account your starting point to see what is the best way to transfer your assets and your operations to Andorra, taking into account the two jurisdictions and the international arena.

Create a new company It may be, depending on the case, to transfer the business from another country, open a new line or market, restructure the existing one or exercise a new business model.

Tax advice

In these times, where the tax burden is the highest in the history of mankind, taxes can be and in fact are a very relevant factor in business and market competitiveness.

The tax planningHowever, it should always be undertaken advised by the best experts and from prudence, in order to avoid contingencies with the tax authorities. At Abast we have the tax advisor you need for your particular project. Every case is a world, tell us your case.

Optimize the taxation of your company To obtain the maximum performance it can be crucial to improve and have an advantage over your competitors, especially in the jurisdiction of Andorra. This way you can expand and guarantee the growth of your business internationally.

According to the objectives, the starting point, the sector and countries in which it operates, the volume of business, the jurisdiction of the company and its structure, etc. the optimal fiscal strategy can change.

In our office we will search and implement the best alternative for your situation, taking advantage of all andorra tax advantages. We have the best tax specialists, with a deep knowledge of Andorran and international taxation that will provide you with the best services.

Accounting agency and consulting

Your Andorran company is required to comply with all obligations arising from the laws and regulations of the Principality of Andorra. Complying with the formal accounting, tax and legal obligations is a strict duty that, in our view, must always be supervised by a professional in the sector. We offer complete management with the following services:

Accounting and financial management

• Documentation management and filing
• Accounting keeping
• Tracking and safekeeping of books
• Bank and balance reconciliation
• Year-end closing, formulation and approval of the annual accounts.
• Deposit of annual accounts in the Companies Registry

Fiscal management

• Completion of tax returns that are applicable (ISOC, IRPF, IRNR and IGI)
• Presentation to the Andorran Tax Agency of the declarations before the Department of Taxes and Borders
• Tax and accounting advice on the best way to carry out business operations

Legal advice

At Abast Global we provide a complete legal service for your business. Support is classified into the following legal specialties:

• Commercial law: We manage all kinds of corporate interventions (incorporations, acquisitions, capital operations, dissolutions, mergers and divisions & # 8230;) and legal review procedures: compliance Y KYC (government and bank), due diligence, commercial alliances, national and international associations. We also administer bankruptcy law, internationalization of companies and forecast of money laundering, among others.
• Tax law, tax advice relating to all tax obligations of the company, or derived from the transfer of residence of natural or legal persons. Advice oriented to the strict fulfillment of the obligations as well as the optimization of the tax burden, access to exemptions, deductions and bonuses that may be applicable.
• Labor Law, employment advice regarding the hiring of staff in Andorra, as well as the implications for retirement and the compatibility of Andorran Social Security (CASS) with other Social Security systems in neighboring countries.
• Real estate law: Urban contracts, errands real estate, real estate business structures, leases, urban audit, communities of owners, licenses and authorizations and administrative resources.

International and electronic commerce

Like international trade companies, E-Commerce in Andorra is a magnificent opportunity if the companies are well structured, both for its tax and operational advantages and legal certainty. We can discern between fullfillment, dropshipping and commission agent model:

• Fullfillment: Andorra is very well located to serve the whole of Europe, but the goods that enter Andorra must go through Customs before going to Europe (as they are not from the EU). However, these extra costs in customs and transport management, can be compensated by the low Andorran taxation, depending on the VAT applied in the country of destination, type of product, as well as the taxation in Andorra.
• Dropshipping: Even greater are the advantages of this type of trade. By avoiding the storage of products, the own costs of storage, customs and international transport are eliminated, being the full tax advantages. It consists of billing the customer in Andorra taking and passing the order (and shipping details) to wholesaler, who then dispatches the goods directly to the end customer.
• Commission agent model: it is the simplest and the most affordable. It consists of being only an intermediary and that the supplier invoices us for the commercial management as a commission. With this triangulation, the supplier is responsible for paying the indirect taxes.

Holdings

A holding (hold) is a partnership for own or manage all or a large part of the shares of other companies, in order to obtain total or partial control over the other companies.

In addition to the optimization of expenses, risk reduction and accounting efficiency as a characteristic of holding companies in general, a holding company in Andorra has unbeatable tax advantages:

• Dividends resulting from foreign companies that are related to a holding company, for an Andorran who participates in it, are not taxed by Individual Income Tax (Personal Income Tax).
• exempt from Corporation tax the profits that the holding companies in Andorra may receive from their association with any foreign company, under compliance with certain requirements.

If you need to establish a holding company in the country, do not hesitate to contact us to do so with the best guarantees and services and the best tax advice.

Domiciliation and management

If your company in or business in Andorra does not have its own headquarters, Andorra Insiders can provide you with a physical address for the social, legal and commercial domiciliation of your company. Thus, we assign your company a address in Andorra as fiscal and / or commercial headquarters, with all the advantages that this implies. From your address in Andorra, we manage the reception and the procedures for correspondence and postal or electronic parcels.

The types of direct debit of companies that we offer are:

• Registered Office: It would correspond to the place where the administration and direction of your company is located, or where its main establishment or operation is located, and which is used in the deeds and in the Commercial Registry.
• Commercial Domiciliation: It would result in the physical space in which a company serves its clients and manages their requests. This is the place where he really sells his image in terms of its physical display. In Andorra it is required that the business address is exclusively for a specific company, and different companies cannot be domiciled in the same office (unless they share a shareholder).
• Tax Domiciliation: It is the place of location of the taxpayer in his relations with the Tax Administration (the address where the tax notifications of the administration would be received).

We take care of all procedures. You will not have to worry about anything and you will get a significant saving in the administration of your mail and documentation.

Banking KYC

To have a company in Andorra it is essential and required to operate with a bank account in one of the five entities from the country. Andorran banks are very strict in their policies due to the crisis of the Andorran Private Bank in 2015, which gave the Principality a very bad image.

That is why they currently implement strong money laundering and terrorist financing prevention policies, and strict "Know Your Customer" KYC protocols, both when becoming customers and when operating and requesting financial services.

At Abast Global we know all the banks first-hand and have contacts with them, thus offering assistance, ease and speed to comply with these KYC protocols. In addition, we carry out compliance reports to prove and certify that the origin of the funds is legal and traceable, something especially important in the case of cryptocurrencies.

In this sense, we help our clients in their relationship with banks, both at a company level and as an individual, providing advice on the procedures and documentation to be provided.