The recent fiscal reforms, are transforming Andorra in a very interesting jurisdiction for the creation of business with an international projection.
The evolution of Andorra during the last years concerning fiscal and financial homologation has been very significant. It has allowed to achieve the present consideration of Andorra by its neighbors, Spain and France. They do not consider Andorra a fiscal haven.
It has also allowed the signature of Tax treaties with France and Spain. They took effect on the 01/07/2015 and the 26/02/2016 respectively.
In addition to the Tax treaties with France and Spain, treaties with Luxembourg (07/03/2016) Liechtenstein (21/11/2016) Portugal (23/04/2017) United Arab Emirates (01/08/2017) are also effective.
A Tax Treaty with Malta has to be ratified, so it has been negotiated and signed.
The main Andorran taxes are:
Corporation Tax (10%) - Gener 2012
IGI (4,5%) (equivalent to VAT) - Gener 2013
Revenue Tax (10%) - Gener 2015
Regarding fiscal homologation Andorra has signed the Convention Mutual Administrative in Tax Matters that will be effective on the 1st of January 2018 concerning data corresponding to the 1st of January 2017.
Additionally, Andorra has signed Tax Information Exchange Agreements (TIEA) with Spain, France, Portugal and Argentina, its main trade and economical partners.
In the following months the parliamentary process linked with the approval of the Andorran audit Law, is thought to start.
More information about investing in Andorra can be found in the following website (official): www.actua.ad/invertir-a-andorra