CEstablishing an offshore company in Andorra has become difficult. For what is this? The Principality has joined the international standards of the Organization for Economic Cooperation and Development, for the automatic exchange of information fiscal, banking and financial, (CRS) with the aim of preventing tax fraud globally. It entered into force on January 1, 2017, within the policy of harassment and demolition of FATCA. This makes it difficult to incorporate an offshore company in Andorra.
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The United States, the “justice of the world”, with its FATCA (Foreign Account Tax Act), obliges banks in Andorra, and the rest of the world, to deliver information on North American clients. Through it, he has smashed the Andorra banksAs Bank of Madrid o BPA, imposing heavy penalties on them for breach of its paradoxical law, and of course money laundering. A law that applies only to American citizens with accounts abroad, but that protects non-residents who deposit their capital in any state in the country, promoting the much-sought Banking secrecy and lavado de dinero.
Because of this, the United States shook the foundations of andorra banking, when he discovered that the popular Banco Privado d 'Andorra (BPA) laundered money for international mafias. The first power considered to financially block the Principality. Today, more than a thousand of its clients, owners of a offshore company in Andorra and holders of offshore accounts, are suspected of money laundering.
n 2016, after investigations initiated by the United States for money laundering, the Andorran Government intervened the Andorran Private Bank (BPA), an entity whose majority clients are of Spanish origin. As a result, they have been affected by the blocking of their accounts after the acquisition of the bank by a North American investment fund. All this has meant the end of BPA and the birth of a new bank: Vall Banc.
As with the Beckham Law of Spain, the Gold Visa of Portugal, or the Green Card in the United States, in Andorra you can benefit from a passive residence or fiscal, only from work permit, not to pay taxes. That is, through the constitution of a offshore company in Andorra, a company domiciled in the Principality and without activity, does not pay taxes.
In this way, and legally, they are not paid taxes in Andorra. However, it is used by many evaders to avoid paying taxes, since, in general, they are not declared in the country of residence either, thus committing a crime and questioning the transparency and legality of the offshore companies.
Regarding passive residence and in Andorra, it is inevitable not to remember the case that brought Borja Thyssen to court, and for which the Ministry of Finance requires him to pay 630.000 euros as a fine and three years in prison for tax evasionIn other words, failing to meet his tax obligations in 2007 by pretending to live in Andorra.
Andorra's response to the US was to promote and coordinate measures to prevent money laundering and terrorist financing through an independent body, the Andorra Financial Intelligence Unit (UIF), under various laws for the prevention of money laundering and international criminal cooperation. Likewise, it follows the indications of the MONEYVAL Committee of the Council of Europe, as well as the 40 recommendations of the offend.
According to the standard of automatic exchange of information, approved by the Consell General (Parliament of Andorra), in less than a month, Andbank, Morabanc, Grupo Crèdit Andorrà, Banco Sabadell de Andorra and Vall Banc, the successor to BPA, must start taking a still photo of their clients . They must link the account number, tax identification, name, address and date of birth of taxpayers residing abroad with a bank account in Andorra to send this information to your country of origin.
he Andorran banks are mainly dedicated to the private banking consumer banking for the local population of Andorra, as well as the commercial banking for business. In the past the offshore banking it had great importance in the economy of the Principality. Since the economic opening and the signing of the various information exchange treaties, the volumes of offshore money have been reduced. Andorran banks mainly focus on private banking, wealth management, and maintain the activities of national retail banking.
In recent years, Andbank and Credit Andorra in particular have made progress in international expansion, through a combination of organic and inorganic growth. MoraBanc it has a more limited international presence, but also intends to increase diversification through expansion. This international expansion will likely erode margins, as international markets are more competitive than domestic ones. AndBank is very active in Panama, attracting accounts of offshore clients.
This type of banks, specialized in international private banking, offer a professional and confidential multilingual service, aimed at large capitals that want to manage and protect their assets, through benefits Wealth Management
n Andorra there is legislation for fiduciary services o trustee, through which the identity of the last and true beneficiary of a company can be protected to avoid the scrutiny of third parties, by appointing representatives and nominee directors of the company.
Trust services mainly include a basic service for the provision of independent directors, members of management, general partners and trustees to both companies and investment funds and financing vehicles established in BVI, Cayman Islands, Delaware, Dubai, Hong Kong, Netherlands, Luxembourg, Singapore, United Kingdom, Among others.
In addition, a range of complementary services: incorporation and corporate services, settlement services, account preparation, secretarial and board support services.