Andorra Opens To Foreign Investors
Updated: 7th November 2008
Andorra Opens Up To Foreign Investments
On 7th November, Andorra took an important step in its reform program to open up, modernise and diversify its economy. More than 200 economic activities have been completely opened up to foreign investments with the entry into force of a Foreign Investment law voted on 8 April 2008.
This new law is part of a program of economic and taxation reforms (Andorra 2020) undertaken by Andorra since 2006 aimed at:
- increasing the international competitiveness of Andorra
- attracting foreign investors and entrepreneurs, particularly in high-value added sectors
- strengthening the legal framework for companies
“Andorra enjoys numerous advantages: a multinational population with a high level of education; a flexible labour market combined with a strong social safety net; an accommodating legal framework for companies; and respecting the international norms for transparency and high quality of life in the heart of the Pyrenees not far from Barcelona and Toulouse”, according to Mr Albert Pintat, Prime Minister of Andorra.
“Moreover, Andorra benefits from a customs agreement with the European Union and from agreements with France, Spain and Portugal regarding the free movement of persons and social security systems. Public safety is high, as well as the political and institutional stability. For all these reasons, we are convinced that business leaders and entrepreneurs will be interested in coming here and we are ready to welcome them and support them in their set up and in the development of their activities in Andorra.”
The Foreign Investment law completes two important laws voted in October and November 2007: a corporate law creating a new type of corporation and a company registry, and an accounting law that established corporate accounting norms close to European rules with compulsory presentation of financial statements.
From 7 November 2008, foreign investors will be allowed to own 100% (instead of 33%) of the capital of companies in 200 economic sectors, among which: high-tech industrial production, research and development, e-commerce, audiovisual production, cosmetic medicine and education and training. Regarding the activities that are already developed in Andorra, foreign investments will be allowed up to 49% of the capital instead of 33%. Within two to six years, the government will propose a program to fully open up these sectors as well.
The government considers that these sectors can play a key role in the development and diversification of the Andorran economy. The next phase in the Andorra 2020 program should lead to the adoption of two laws introducing a corporate tax rate between five and ten percent and merging indirect taxes into a single VAT around four percent.
For more information: toni.pampliega@govern.ad
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