Business form
Wherever you do business, you can do it all through Andorra.
There are several options for setting up a new business in Andorra. We are happy to explain which ones. What are the ground rules you and your company must meet and what are the consequences? And last but not least: are you required to live in Andorra or not?
The different forms of business
Holding
A holding company makes it easier to manage your business. This structure allows you to centralize the various issues in your business and manage different aspects of your business. Above all, it reduces the risk of conflicts of interest and centralizes expenses.
One of the biggest benefits of a holding company is tax optimization, which can legally reduce certain tax levels for your companies. Good to know: for a holding company in Andorra, you do not have to live in Andorra. There are different types of holding companies possible that serve different purposes. We are happy to discuss this with you during an initial appointment.
New (commercial) company
You can also set up a new company in Andorra while living in Andorra.
There are several forms:
· SLU (a private limited company with 1 shareholder. Capital minimum 3,000 euros)
· SL (a private limited company with multiple shareholders. Capital minimum 3,000 euros)
· SAU (a public limited company with 1 shareholder. Capital minimum 60,000 euros)
· SA (a public limited company with multiple shareholders. Capital minimum 60,000 euros)
Benefits of a new company in Andorra:
· No dividend tax
· No wealth tax on real estate
· Max 10% profit tax
· Payroll tax 6.5%
· Employer’s contribution 15.5%
· Income tax 0-10%
· VAT 4.5%
In this case, you can then apply for a so- called active residency. This means that you are a resident and are allowed to work in Andorra. Of course, we will also help you (and possibly your family) with the whole procedure of this.
This is a company whose purpose is to manage movable assets (e.g. capital and shares) and immovable assets (e.g. real estate).
One of the advantages of a patrimonial company is that it is favorable for inheritors. Especially in Andorra, because there is no inheritance tax there. Compared to the Netherlands, where inheritance tax can be between 10 and 40% and in Spain in some cases it can be up until 80%!
This type of company deals mainly with the purchase or rental of real estate.
It is intended for people who want to transfer their real estate or income from real estate to Andorra for tax purposes.
Through this structure you can:
-Reduce real estate-related expenses.
-Transfer real estate to Andorra for tax purposes and thus reduce tax.
-Avoid inheritance tax: it is possible to prepare the transfer of your assets to your heirs.
Moreover, a patrimony company provides protection and the transfer of family assets.
Offshore
An offshore company is a company established in another country. An offshore company is established in a country with an attractive tax system and is an excellent way to improve your Dutch tax situation.
Benefits of an offshore company
An offshore company offers a number of benefits, but they depend on the country where the headquarters are located.
One of the biggest expenses for a European company is all types of taxes (corporate income tax, social security contributions, employer contributions, profit tax, etc.). So it is important to pay close attention to the tax laws in the country where your company is located.
The most important criteria for choosing the location of your company's future headquarters is whether the tax system is advantageous (enough) and whether a double taxation treaty exists between the two countries.
For more information, contact us.
