Andora Summary

The Principality of Andorra (Catalan: Principat d'Andorra, French: Principauté d'Andorre, Spanish: Principado de Andorra) is a small, landlocked principality in south-western Europe, located in the eastern Pyrenees mountains and bordered by France and Spain. Once isolated, it is currently a prosperous country mainly because of tourism and its status as a tax haven. Andorra is not to be confused with the Comune di Andora. Andorra has no military force of its own. Its defense is the responsibility of Spain and France.

It is misleading to describe Andorra as 'offshore', not because it is landlocked, which it is, but because it does not particularly set out to offer such classical 'offshore' products as trusts (it doesn't have any), international business companies (ditto) or specialised tax regimes for insurance, banking or investment funds. It doesn't need to, because there isn't any income tax anyway, for individuals or companies, indeed hardly any taxes at all except for customs duties, local property taxes, and corporate registration fees. Insistence on Andorran majority ownership of all business and trading activities is the key factor in understanding the development of the Andorran corporate sector, and accounts for the fact that, successful as Andorra is at attracting private client business for its banking sector, there is very little foreign involvement in financial services.

So all business in Andorra is low tax, and at Can-Offshore we can discuss two ways in which investors can take advantage of the Andorran low-tax environment.