The pandemic has brought with it many changes that have made our daily lives change drastically and changes that should have been gradual have crept in overnight.
We talked mainly about how there have been changes that have made activities more efficient and accessible, such as teleworking, videoconferencing or home entertainment.
This has left us with professions where location and physical residence used to be a necessary requirement, but where it is now completely secondary.
This has brought with it the increase of businesses and digital entrepreneurs who have chosen Andorra as one of the most attractive options.
Andorra has thus become an ideal country to undertake this adventure because of the many advantages it offers. Here are some of the most relevant for those who want to put their focus on this country.
Advantages of Andorra for digital entrepreneurs
A kinder fiscal policy
Undoubtedly, the main incentive for moving to Andorra is the low cost of taxes. We are talking about a maximum personal income tax of 10%, a corporate income tax of 10% and a VAT (here called ICI) of 0% to 4.5%. It is more than evident that the conditions for entrepreneurship are much more favorable than in Spain.
In addition, in recent years the country itself has signed agreements to avoid exposing this type of project to double taxation.
Good Internet connection
It may seem simple or absurd, but the truth is that Andorra has fiber optics in 98% of the territory.
Working in a house relatively far from an urban center is possible due to the good connections in the Principality.
A community of entrepreneurs
Over time, Andorra has become the go-to destination for many digital entrepreneurs such as content creators. This has created a networking community where digital professionals can find partners for their projects.
A peaceful environment
Andorra is much more than a country with a certain fiscal attractiveness for its residents.
It has an exceptional nature and landscape in which to disconnect. In addition, its low crime rate has made it a very safe country for workers and families. On the other hand, Andorra is a country of sport and leisure in which mountain sports such as hiking and cycling are the main protagonists.
Security and economic stability
The economic situation, although it has suffered a major setback due to the decline in tourism, is still an attractive economy for foreign capital. One of the most sought after by entrepreneurs as they hope to find funding and new investors for all their projects.
How does the Digital Economy Law benefit digital entrepreneurs residing in Andorra?
In 2021, the new Digital Economy, Entrepreneurship and Innovation Bill was approved in Andorra with the aim of further developing and strengthening the digitalization of the country. A law that creates a stable legal framework for digital workers.
Among the measures, we can highlight the promotion of the creation of a free zone to attract digital entrepreneurs. This law also contemplates new modalities of residence in the country. We are talking about the digital residence in which individuals who do not need a specific location but who use technology and telecommunications during their activity are contemplated. This highlights the figure of the digital nomad to facilitate the creation and management of remote projects and companies.
The Digital Economy Law, for its part, introduces measures that guarantee the rights of digital workers, such as the right to disconnect after working hours. It also regulates common spaces (coliving) or rentals of shared workplaces (coworking) that until now had been left out.
In short, this bill ensures that all aspects of digitalization are regulated for the benefit of all.
How to create a company in Andorra?
The main advantage of doing business in Andorra is the tax and labor facilities that the country offers compared to other countries. In fact, setting up a company in Andorra is much simpler than in Spain and also generates less costs.
If you are thinking of creating a company, these are the simple steps to follow:
- To make a request for reservation of the corporate name.
- To elaborate the bylaws of the future company.
- Deposit the capital to be used in an Andorran bank.
- Incorporate the company before a notary public.
Andorra has taken a big step towards the digitalization of the country by betting on technological sectors, from big data to artificial intelligence. The most innovative emerging sectors are looking to the country to develop their projects and are open to the bureaucratic and fiscal facilities available to them. Innovation, sustainability and digitalization are the keys that will determine and set the course for the future of this country.
If you too have set your sights on Andorra and are looking to build your future, at WIT we are specialists in offering tax, financial, labor and accounting advisory services for individuals and companies that decide to embark on this adventure.
We will fully embark with you in your project and help you overcome the legal and economic challenges you will face in your new day to day life.
