Are you thinking of setting up your business in Andorra, or making investments there? To take full advantage of the Principality's tax benefits, it's essential to understand its VAT system. At AND Capital, a firm of chartered accountants specializing intax optimization in Andorrawe'll guide you step by step.
A single, advantageous VAT rate
Unlike many European countries, which apply different VAT rates to different goods and services, Andorra has opted for a single rate. particularly attractive single rate of 4.5%. This low level of taxation is undeniably an asset for boosting the economy and attracting foreign investors.
Almost all products and services are subject to this 4.5% rate:
- Everyday consumer goods: food, clothing, electronics, etc.
- Professional services, catering and construction.
Some notable exceptions
While the 4.5% rate is widely applied, some sectors benefit from total VAT exemption:
- Health and medical services
- Financial and banking activities
- Real estate transactions
This tax advantage on goods and services, coupled with sector-specific exemptions, helps to boost Andorra's economic attractiveness. Companies benefit from lower tax burdenThis encourages their development and competitiveness.
Expert support to optimize your tax situation
At AND CapitalWe're here to help you make the most of Andorra's tax environment. Our experts can advise you on all aspects of your business:
- Setting up a company in Andorra commercial, offshore, holding, wealth management...
- Tax optimization tailor-made advice to save on taxes
- Opening bank accounts to the principality's establishments
- Get your tax residence in Andorra
"Andorra offers a particularly favorable tax environment for entrepreneurs and investors. With expert support, it's possible to significantly optimize your taxes and give new impetus to your projects."
In addition to VAT, the Principality of Andorra has a number of levers at its disposal to reduce your tax burden These include corporate income tax limited to 10%, and no wealth tax or capital gains tax. Contact AND Capital now for a personalized audit and discover how to give your projects a new dimension!
