It is very likely that you have already heard of Andorra before. This offshore jurisdiction is one of the most famous among Spanish residents, and is in fact one of the most mentioned by youtubers in this region. By creating an offshore company in Andorra, paying taxes becomes a thing of the past, which has attracted not only international companies and investors, but also people of great wealth.
But how can it be achieved? If you are considering create an offshore company in Andorra to save on taxes, but you don't know where to start, how it works or who can access one, here we explain everything about it.
Why is no tax paid when creating an offshore company in Andorra?
Creating an offshore company in Andorra requires a very simple and effective form of tax planning. This is similar to the one that applies in Panama, which has a tax system based on the territory. In Andorra it is possible to save on taxes by establishing a company that does not carry out activities in the jurisdiction.
Is it legal to incorporate a company in Andorra?
Yes. The tax planning applied when creating an offshore company in Andorra is totally legal and used by many companies today, even in other offshore jurisdictions. The illegality of a company in Andorra occurs when investors do not declare taxes in their country of residence, so it is an issue with which great care must be taken.
The difficulty of establishing an offshore company in Andorra
Although this offshore jurisdiction offers great advantages to European clients, it also has a flaw that not everyone can ignore. Due to previous tax problems and suspicions of money laundering, Creating an offshore company in Andorra or even a bank account is not as easy as it sounds. It requires proper planning and also a lot of knowledge of Andorran laws.
How to create an offshore company in Andorra
Despite the restrictions, it is still possible to create an offshore company in Andorra in a totally legal way. With the necessary advice, resources and knowledge, you can create a business that operates legally and also saves you large amounts of money in a short time. If you don't know where to start, at Foster Swiss we help you reach your goals quickly and easily.