Spotlight on Andorra
Andorra is a ski-oriented country nestled between the Spanish and French nations in the Pyrenees mountain backdrop. It has, for long, enjoyed the tax-haven status owing to its exploits in the fee management structure that has turned European heads and attracted worldwide investors for its markets.
The tax system in Andorra
Taxes in Andorra were previously absent for all, but with the urban economy wave, the country had to adapt to remain relevant. With its well-implemented new system, all Andorran residents of six months and more with a valid ID and their financial interests vested in the region were liable to pay taxes. However, the country set a bar of € 24,000 per annum, below which all taxes were exempted for the residents. This residencia fiscal andorra brought worth nationwide satisfaction and established a fluid market.
VAT in Andorra
The Value-Added Tax (VAT) in Andorra is considered the lowest in the entire European belt. Named the Andorran IGI, the tax rate is a mere 4.5%. This poses a tremendously attractive platform for investors and entrepreneurs worldwide and also aids the residencia fiscal andorra users. The entire system brings forth a very lucid tax-free setup where the Andorran residents get a VAT refund on all products brought from Spain, France or anywhere in the world and imported to their nation.
Enticing tax system consequences
From the mentioned statistics and proven surveys it is a fact that Andorra enjoys the payment of much less taxes than its Spanish and French neighbors. This brings in Investment activity from the European belt and consequentially increases the nation population. Andorra also enjoys an edge on the personal income tax rate over Spain. This extremely desirable ‘tax-haven’ status thus puts the nation in the ideal track to future economic sovereignty.