Andorra is one of the most unique places in Europe that consists mostly of captivating landscapes and Romanic architecture, Andorra is a little principality that will surely impress visitors from around the world.

Known as one of the most attractive places in Europe to do business thanks to its low tax rates, Andorra is one of the most colorful and unique places on the Old Continent. It has one of the richest cultures of this part of the world given its proximity to countries such as Spain, France, and Portugal. This allows people to enjoy a distinctive touristic experience, and, for investors, this small country offers the possibility of doing business in a business-friendly tax system.

Further, in the last few years, Andorra enacted transparent tax legislation with stronger banking compliance rules, which are in line with OECD regulations without sacrificing banking safety. Thus, Andorra is a whitelisted jurisdiction that will still bring you significant benefits.

It is one of the smallest countries in the world: Andorra is the 6th smallest country in Europe and the 16th on the planet. It is also one of the least populated nations, ranked 11th in this regard. And as many of these European micro nations, such as Liechtenstein and Monaco, it has an excellent reputation for offering top financial services for the wealthy.

The official language of Andorra is Catalan; however, given its closeness and shared history to Spain, France, and Portugal, it is common for its citizens to speak Spanish, French and Portuguese. Further, due to the prevalence of financial services, English is also becoming widely spoken.

Year by year, Andorra is getting more and more requests from foreigners worldwide to move into the country to enjoy the Pyrenees’ peacefulness and the tax benefits of Andorra. People are interested in doing business in Andorra thanks to its worldwide known low tax rate and economic and political environment that is attractive to international investors.

Yet, Andorra has plenty of things to offer for tourists and investors alike, making this little principality one of the most interesting places in all of Europe to visit or start new business ventures. Let’s learn a little more about this unique place.
Some of the reasons why Andorra is such an interesting place are:

A Brief History of Andorra

Often overlooked in the grand scheme of European history, Andorra has been a part of some of the most important chapters of the continent. 

Before the 9th century Andorra was occupied by Muslims, as was almost all of what is currently Spain. In the year 803 the territory was recovered by Charlemagne who then granted the inhabitants liberties not seen before during the Islamic occupation.

Since then, Andorra saw various forms of political administration, in which royal representatives from Spain and France shared the country’s administration. This was not exempt from controversies throughout the centuries, as Andorran inhabitants took part in some important regional conflicts. One of them is Catalonia’s independence in the 18th century, a nation that represents an important part of Andorra’s cultural heritage.

The history of this country seems rather uneventful compared to the rest of the nations of Europe. Andorra has manifested historic neutrality in various important worldwide events such as World War II, with the principality opting to remain distant from this conflict. However, Andorra has been welcoming to refugees that get away from conflicts in the region, like Spain’s civil war in the first half of the 20th century.

One of the key issues to consider when looking for a safe haven for your assets is stability. As you can see, Andorra has been war-free for decades, even when conflicts surrounded it. It enjoys utmost political stability, which allowed it to become a rock-solid banking and asset protection jurisdiction.

Since the 30s, Andorra has seen exponential growth in its economy, thanks to its thriving tourist industry and the low tax rates currently known for. The cultural heritage that visitors can encounter in the country, as shown by the buildings, food and manners of its inhabitants, has been the reason behind the boost of its increasing influx of tourists from Europe and worldwide. 

Regarding the constant growth of the country’s economy, since the second half of the 20th century, Andorra has been recognized as having one of the world’s highest GDP per capita and has been amongst the countries with the highest life expectancy rates. Citizens of the country and newcomers can enjoy a rather unparalleled quality of life, so it is understandable why so many people are interested in having their business in this principality and moving to Andorra.

Andorra adopted its current constitution after a referendum in 1993, gaining more autonomy from its co-princes in France and Catalonia. The country’s administration is a parliamentary co-principality with the president of France (currently, Emmanuel Macron) and the Catholic bishop of Urgell (Catalonia, Spain) acting as co-princes, whereas the head of the government (chief executive) is elected through popular vote. 

Some Facts about Andorra

This peculiar country has some interesting curiosities that you should know:

As you may see, Andorra’s calmness has been one of its main tourist attractions, with its unique natural environment being one of the reasons that interest visitors looking for a unique travel experience. Plus, its stability, residency program, tax system, and developed financial infrastructure, make it a top destination for asset protection and family offices in Europe.

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Why Investing in Andorra?

If you are looking for an adventure, look no further than Andorra. Thanks to its beautiful landscapes and colorful history, this small principality has a lot to offer to foreign travelers. Look forward to these activities when you come to Andorra:

Since the 90’s, Andorra has become one of the most interesting places to start a new business venture. With one of the most stable political regimes entrepreneurs or foreigners’ investments will be safe in this principality. Nonetheless, Andorra is widely known worldwide for having one of the friendliest tax systems that you can find in any country. With one of the lowest tax rates in all of Europe and amongst the most attractive in the world, Andorra offers an exciting opportunity for international investors looking for a new place to start their businesses. 

While Andorra is not part of the European Union, the administration of the principality has come to agreements with this organization to have the Euro as their national currency and other benefits as if the principality were an official member of the EU.

Here are some of the benefits that investors can enjoy in Andorra:

-Andorra has the lowest tax rate in all of Europe. 

-The location of Andorra makes it perfect for investors that want to travel across Europe, by being established between two of the most important economies of the region (France and Spain).

-Finally, Andorra has one of the most well-established bank systems in the region, with banks that offer excellent opportunities for new investors that want to get credit, financial support, or private banking services.

As you may see, there are a lot of reasons why year after year new investors are looking at Andorra as an option to start their financial ventures. In this principality, some of the most popular and successful business ventures are:

Are You Ready to Start Your Business Venture in Andorra?

Enjoy a quiet place, from where you can run your financial ventures while being in one of the most thriving places to do business. With its position between two of the most important economies of Europe, Andorra is currently one of the best places to start your business and has, by far, one of the best residency programs in Europe.

At Mundo Expert, we have assembled a team of professional advisors that are ready to help you anytime, so you will see what your best option for your investments is. 

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Andorra has been striving to get investors interested in the country, by offering an attractive platform to do business with one of the lowest tax rates in Europe.

These are perhaps the country´s most known characteristics:

1) It is one of the most sought-after residency programs in Europe, which will give you visa-free access to Portugal, Spain, and France. 

2) It offers a mix of cultures throughout its diverse cultural expressions, given its shared history with countries such as France and Spain.

3) Andorra is one of the safest banking destinations in Europe.

4) Andorra has some of the most breathtaking natural landscapes in Europe. With multiple mountains and rivers, the principality has the ideal environment for those who want to be in touch with Mother Nature.

5) With one of the smallest populations in the world, Andorra offers the opportunity for visitors to experience the most relaxing and peaceful vacations.

6) Due to its peculiar mix of services, Andorra can be a privileged destination for establishing a family office in Europe.

7) One of the best health care systems in the world, according to Lancet magazine.

8) One of the safest places to live in the world with very low crime rates.

9) Excellent education facilities with French, Spanish and English-speaking schools.

Unparalleled Political Stability

Andorra has the smallest parliament in all of Europe with a minimum of 28 and up to 42 elected representatives, it is one of the less crowded parliaments in the world.

Almost 90% of the country is raw nature. Between mountains and rivers, visitors can be amazed by the beautiful landscapes of Andorra, and it is the perfect place for people who want to be in touch with the environment and away from loud European metropolis.

Most of the country’s inhabitants are immigrants from France and Spain that came in the 60s. In fact, Andorrans currently are less than half of the country’s total population.

Thanks to the geographical location of the principality, Andorra has never been in a war throughout its history. It has solved its issues through diplomatic ways.

Discover the Romanic Andorran Architecture

There are dozens of churches that represent this particular style of infrastructure in Andorra, so you may look at some of the most iconic ones, such as the “Church of Sant Climent'' and “Church of Sant Romà”. Here you can learn some of the country’s history and appreciate its cultural roots.

With three ski areas totaling 303 kilometers of rinks, winter sports such as alpine skiing, cross country skiing and snowboarding, are well catered for.

You can travel to the villages of this small principality and enjoy a peaceful and unique adventure through the locals’ culture, tasting their dishes, and immersing yourself in the captivating surroundings of this place. Learning the locals’ ways of life through visits to historical buildings such as “Casa de la Vall”, enjoying dishes like the soup “Escudella” to overcome the cold climate during the winter, and exploring Andorra’s parishes, you will throw yourself into a culture like no other in Europe.

Thanks to its amazing landscapes and vast nature, trekking is among the most interesting experiences you can have in Andorra. You can even go from one side of the country to the other only through natural environments. It is possible to walk all the 500 km separating the two borders giving adventurers an experience like no other.

Downhill Mountain biking is now massive in the summer with world cup races being held in Vallnord each year. Apparently, the course is a favorite amongst the professional racers.

Taxes:

 - An income tax rate between 5 and 10%.

- A corporate tax between 2 and 10%.

- VAT of 4.5%, the lowest in Europe.

Andorra does not have a tax over wealth or heritage.

Finally, contributions for the Social Security system are amongst the cheapest in the world, and the system is one of the best. 

By setting up a trading company in Andorra, or establishing a holding company for your international investment, you can operate without complying with complex and expensive tax systems. As an Andorran resident, your dividends obtained from said companies will be exempt from taxation.

You can invest in companies that are already based in Andorra. You also have the option of investing from Andorra in companies based outside its borders (as a financial management company).

Lastly, one of the most thriving investments in Andorra is real estate. The prices of houses and offices have dropped considerably since 2009. With many international investors from Europe and outside the region looking to establish their business in the principality, it might be good to buy real estate. At the same time, its price remains low, so you have an investment whose value will only increase over the years. Given its quick opening to international capitals and its residency program, investing in real estate seems like an unavoidable success.

Since 2012, Andorra has implemented some new policies to attract international investors that want to run their businesses in the principality, giving them the same treatment as nationals.