Smartinvestment. Andorra: investing money

. 100% liberalization of Andorra.

In terms of Foreign Investment, a new Law 10/2012 was approved on the 21st of June 2012 which came into force on the 19th of July 2012. The Law permits 100% liberalization of investment in all sectors and simplifies the process of incorporating companies to accelerate the market in the short term and open the doors to talent and foreign investment, reviving and strengthening the economy of Andorra by way of diversification, competitiveness, promoting innovation initiatives and a wise use of tax differential.

This new competitive model as a strategic tax platform, has been created to attract foreign investment start-ups, create jobs and wealth, focusing on sectors and recruitment to those businesses that generate higher added value and growth.

This is intended to investing money:

1. Provide a good service to established investments and potential investors, providing support to potential investors at all stages: pre-investment, investment and post-investment.

2. Promote an adequate investment climate that encourages investment, identifying the needs of potential investors and investors already established and suggesting measures to meet those needs, strengthening relations with associations and institutions related to foreign investment.

3. Disseminate and promote a competitive country image associated to Andorra, including a modern and innovative view, increasingly internationalized and provided with adequate human and technological resources to the process of globalization of markets and the economy.

4. Establish lines of collaboration with all institutions in the State (and also at a local level) which are focused on the promotion and attraction of investments to establish a network of leverage to achieve the above objectives..

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*It should be noted that for new external investments an investment project shall be submitted and will be analyzed by the Andorran government who will assess its suitability. If it fulfills all the necessary requirements, the investment will be authorized.

However, this requirement does not exist for projects launched by residents in Andorra, whatever their category (active or non-profit) and country of origin is.

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Imminent structural changes. Smartinvestment

All these social and legislative changes involve a number of structural changes that have already begun to develop:

— The Government is working on the project of construction, management and operation of the national heliport in order for it to be operative in the near future, and operating it with various regular lines connecting Andorra, Barcelona, Toulouse, Lleida (Alguaire) or La Seu d’Urgell.

— Andorra wishes to offer its tourists, visitors and citizens commercial offer of excellent quality and well positioned on a level with the major capitals of the world. In this regard, Andorra wishes to attract the leading international retail brands. Thanks to the new fiscal framework and its economic openness, once those leading brands are established in Andorra, it will become a hub of top level shopping in Europe.

— Initiatives that involve changes to the technical training of people linked for transformation and improvement of tourism infrastructure. The new economic model and future demands of tourists, visitors and new citizens, These initiatives also involve changes to the technical training of people linked to these improvements.

— implementing the most advanced medical technology with no waiting lists and having at its disposal a network of technology ,one of the new goals of the Andorran Government is driving Andorra towards the top of medical excellence emulating the Swiss model.

— Promotion of new training centres and high level international scope centres.

— Promotion of research, development and technology in all areas.

— Development of entrepreneurship in terms of recruitment and project financing of projects.

— Alongside initiatives to promote the development of multiple leisure options, special emphasis has been put on gambling so it brings added value. The first step was the Decree of 7 March 2012 which sets up the Agency of the Interministerial Commission of Gambling and which in turn has led to the creation of the Office of Gambling. Its aim is to analyze the strengths and weaknesses of this new activity and move on to a new law that includes gambling options like casinos, lotteries, online gambling and betting offline. The project of the gambling Law will be submitted to parliament during this year 2013.

Look here for more details about investment policy of Andorra (interview with the State secretary for economic diversification of the Andorran government Josep Maria Missé) 

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Source: Department of statistics of Andorra

foreign_investments_andorra_2014

andorra_investments_sectors

 

FOREIGN DIRECT INVESTMENT IN ANDORRA

Since the entry into force of foreign investment law in July of 2012,
1,800 companies have been registered by foreign entrepreneurs, who declared an initial investment of € 190.6 million.

The average amount invested by foreign entrepreneurs is 106.000€.
Around 25% are existing businesses acquisitions and over 1,000 jobs have been created.

Formalized FDI by country of origin 2012-2016

COUNTRY OF ORIGIN NUMBER % AMOUNT (€) % AVGE AMOUNT (€)
SPAIN 877 49% 104,696,439 55% 120,000
FRANCE 454 25% 31,548,358 17% 70,000
RUSSIA 68 4% 2,690,108 1% 40,000
ANDORRA 38 2% 10,617,152 6% 280,000
BELGIUM 33 2% 12,483,073 6.5% 380,000
UNITED KINGDOM 33 2% 1,331,030 1% 40,000
GERMANY 28 2% 3,075,485 2% 110,000
ITALY 25 1% 2,249,350 1% 90,000
UKRAINE 24 1% 1,532,518 1% 65,000
CHINA 22 1% 702,600 0.5% 30,000
THE NETHERLANDS 20 1% 3,715,272 2% 185,000
OTHER COUNTRIES 177 10% 16,002,829 8% 90,000
TOTAL 1799 100% 190,644,214 100% 106,000

Formalized FDI by sector of activity 2012-2016

SECTOR OF ACTIVITY Number % Amount % Avge amount (€)
Projects, design and research 27 1,5% 4,320,825 2% 160,000
Manufacturing, execution, completion 27 1,5% 3,104,504 2% 115,000
Wholesale and retail 589 32,7% 50,933,957 27% 85,000
Business Services Activities 847 47,1% 52,359,483 28% 60,000
Real Estate and Construction 52 2,9% 22,269,472 12% 430,000
Investment Portfolio 7 0,4% 1,245,193 1% 180,000
Accommodation services 60 3,3% 2,478,290 1% 40,000
Assets management 190 10,6% 53,932,491 28% 285,000

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