International tax planning Andorra
You are probably considering Andorra as part of your international tax planning. Andorra is indeed a low-tax jurisdiction with important advantages for your international business activity or personal tax planning. At AndorraConsultants we specialize in the analysis of international company structures and the implications of moving your operations to Andorra. A second part of our activity includes high net worth individuals seeking to change their tax residency to a favorable jurisdiction.
When it comes to evaluating the feasibility of your project we look at all determining factors that can influence and are fundamental for your decision making.
Each and every single business case is different. Many factors need to be looked at before making your decision such as the following:
– Your business activity
– The nature of the product or service
– Your clients (location, B2B, B2C)
– Distribution / logistics and supply chain
– VAT implications for your trading activity
– Transfer pricing concerns
– Withholding tax and double trax treaties interpretation
– Shareholders behind the project (residence, nationalities, economic interests)
– OECD – BEPS substance requirements
– Latent / hidden reserves in companies and potential exit tax implications
These are just a few of the determining factors for our analysis on your case. We wish to highlight that we discourage aggressive tax optimization and strictly follow the guidelines of the OECD and BEPS norms in terms of substance. The Andorran government is commited to the same and actively following the regulations set in place by the OECD and the related tax treaty models’ content and policies.
Nevertheless Andorra has unique tax advantages to offer, but it is important to consider professional advise before setting up a structure for fiscal reasons in Andorra. Offshore entities do not exist in Andorra and there is no intention to attract business that has no substance in the country or is meant for tax evasion. This is a no-go in Andorra. The optimization of your fiscal burden may be substantially reduced however with the proper tax planning and strategy that is appropriate to meet your circumstances and the regulations of international tax laws in place.
We look forward to consulting you further on the above as this is where we believe our main added value to your future project in Andorra.
Planning your next steps in Andorra
Before setting up your company or considering relocation to Andorra we strongly recommend a proper analysis of your current situation and how Andorra may be fitting into your business model. Without a professional analysis you may carry an excessive risk to not make the right decision. Our team is made up of tax advisers and consultants that specialize in international company structures and may assist you with analysis for the following topics.
- Transfer Pricing – Related company transactions and margins
- Substance Requirements – OECD’s BEPS requirements in Andorra
- Tax Treaty Analysis – Interpretation and analysis of double tax treaties
- VAT Analysis for international transactions – Distance selling, trading, services
- Exit Tax Implications – Relocation and change of tax residency implications
- Logistics and Supply Chain Tax implications – Where you sell and where you buy
- Inheritance and Wealth Tax implications – Plan for the future