The economic competitiveness of the Principality of Andorra requires the internationalization of their businesses and the opening to foreign investment and improving the business structure. This is the only possible answer to the irreversible phenomenon of globalization of world economic activity.
The new economic model and Andorran tax , based on the liberalization of foreign investment, provides the international investor multiple strategic opportunities, both corporate and individual, who supplemented with a competitive new fiscal framework to meet the expectations of investors.
Economic changes and tax represent an excellent opportunity for entrepreneurs wishing to provide services Andorrans abroad without being subject to the retention of origin. The new fiscal framework that Andorra has definitively left, front Spanish authorities considered a tax haven, which has allowed the negotiation and signing of agreements to avoid double taxation (CDI). This improves the tax treatment they receive from employers Andorran jurisdictions where set business objectives.
Andorra with its special and attractive tax advantages, economic and financial, as well as its integration in an international context, it becomes a platform very attractive for growth, optimization and expansion to foreign companies seeking new countries and cities in which to invest and establish its activities with an international focus.
Also, the signing of CDIs (France, Luxembourg and Spain) involves the recognition and confirmation of the tax system Andorran , and therefore the existence of a key element for the attraction of foreign investment.
The CDI (Double Taxation Agreement) signed between Spain and Andorra (plus CDIs already signed by the Principality with France and Luxembourg) will contribute to consolidating and increasing internationalization of Andorran companies , expanding the potential market Andorra. It is an agreement which allows Andorran companies providing services abroad without paying taxes to both countries and foreign businessmen to establish business in Andorra and only be subject to taxation in this state.
Notably, to date, Andorran companies offering services in Spain were recorded with a retention of 24% and in France it was a 33.33%. With the entry into force on 26 February 2016 CDI Spain and Andorra will benefit from the abolition of tax burdens in the form of deductions . They may implement more efficient mechanisms to eliminate double taxation borne, obtaining a reduction of tax costs and increased profitability of business margins , implying an improvement in the competitiveness of Andorran companies or equity abroad.
Moreover, the Spain-Andorra CDI contributes to greater protection and better legal security of foreign investments , in addition to providing many benefits to the international projection of Andorra, as well as the competitiveness and openness of ' Andorran economy.