The Principality of Andorra is located in the heart of the Pyrenees, between France and Spain. Andorra is not just another Offshore centre. In the first place, Andorrs is landlocked and in the second place, Andorra does not have an “offshore jurisdiction”.
It does not have special Tax regulations for banking or investment funds, it does not Offer classical offshore products such as trusts. The reason it doesn’t Offer these services, is becaues Andorra does not levy any taxes at all. No individual taxes, no company taxes, just some custom duties and Local property taxes. Andorra has no official Currency, and a wide Range of currencies are accepted internally.
Financial Background
The Andorran jurisdiction, prescribing a majority of Andorran ownership in any business, does not make Andorra a good place for international trading. However, because of the absence of taxation, the liberal business environment and the High level of secrecy make it a perfect place to collect the proceeds of international business, especially if the entity that ultimately benefits is living in Andorra.
The business environment in Andorra is very liberal. There are no corporate income taxes, and regulations are light. Since there is no Currency, there are no Exchange or capital controls. Telecommunications are excellent, and Internet hosting is available.
An Andorra Non-resident company is not liable to any taxation. It has not concluded double taxation agreements with other nations. This means that no information is exchanged with other countries fiscal authorities. Incorporation and running of the company is simpler and more cost-effective when compared to other offshore jurisdictions. Andorra is a finance center of repute within the European Union. Companies incorporated there compare favorably to those registered in purely offshore jurisdictions.