In 2014 the Government of Andorra granted 603 permissions for formation of foreign companies. Total amount of investments is 109 mln euros that is four times bigger than last year (27 mln euros). 473 permissions for formation of foreign companies were given in 2013. The Secretary of State for Economic diversification of Government of Andorra Josep Maria Missé stressed that “it has been a very high growth rate since 2012, when the «Foreign investment law» was passed. The law allows registration of business with 100% foreign participation”.
The government representative also remarked that the number of applications from French entrepreneurs highly increased in 2014. At the present time percentage of applications from France equals to 37% out of the total amount comparing to 25% last year. Percentage of applications from Spain is 41% out of the total amount in 2014. According to Josep Maria, this situation due to signing of non-double taxation agreement between Andorra and France in 2014.
Josep Maria Missé also mentioned that the following fact is very important: growth of foreign investments in economy of Andorra led to increase its ratio to GDP of Andorra up to 1.24%. “This ratio is still lower than average European ratio, which is 1.9%, but upward trend is evident. It has been only 3 years since passage of the new Investment law,” – considers Josep Maria. According to him, leap forward in private healthcare and emerging technologies sectors was based on foreign investments in 2014.
294 new jobs were created because of opened foreign companies in 2014. In 2013 the number was 170. Most of the new companies have around 7-8 employees.