Economy

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Draft law to modify the law governing foreign investment in Andorra                            

The draft to modify the 2012 law governing foreign investment in Andorra has been presented. The main aims of this reform are to conform to other countries’ standards in this field and to streamline the procedure for certain investments. Apart from this major change, the new regulatory framework also provides for a system of subsequent control and for a penalty system, neither of which existed previously. It is worth noting that foreign investment currently represents 18.7% of Andorra’s GDP, and …

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Foreign investment grows for another year in Andorra

The number of foreign investment applications in Andorra and the volume of initial investment declared grew substantially in 2021. Figures have improved compared to the pre-pandemic period, with results well above those of 2020. These are the conclusions after analysing the figures that the Government’s statistics department has shown in its report. All the relevant data are summarised for you here. Table of contents 1. Growth in the number of applications submitted 2. Nearly 1,000 foreign investment requests were approved …

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Fitch Ratings upgrades Andorra to an A- rating                              

In its latest rating, of 8th July, Fitch Ratings upgraded Andorra to A-, with a stable outlook. This is the Principality’s highest rating to date. In the previous report, of January, 2022, the Principality was rated BBB+. Both the improvement in public finances and the reduction in the debt-to-GDP ratio were much better than forecast at the beginning of the year, and were the reasons why Fitch Ratings awarded Andorra an A- rating. Among other factors, the report also highlights …

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Policies to improve purchasing power                       

The Andorran government has submitted a draft law with a series of measures aimed at improving the purchasing power of its citizens. Price increases due to inflation, combined with the negative economic consequences of the COVID-19 pandemic, have caused families to experience a considerable reduction in their purchasing power. The package of economic and social proposals first appeared at the end of April, followed by the draft law to give them emergency status on 7 June, although some of these …

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fondo-monetario-internacional

The IMF forecasts a strong post-pandemic recovery for Andorra

According to the IMF, the forecast looks good for a recovery of the Andorran economy this year, with a view to emerging from the recession caused by the COVID-19 pandemic. In this regard, the aspects that the IMF’s experts valued most in their preliminary report included the growth of GDP in 2021 and the low unemployment rates. They consider these factors to be decisive in the principality’s ability to withstand the effects and move forward despite the difficult situation. The …

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irpf-andorra

Personal income tax (IRPF) in Andorra

The income tax campaign in Andorra began in April and you have until 30th September to file your tax return. In this article, we tell you how personal income tax works in Andorra. TABLE OF CONTENTS: 1. Income tax in Andorra 2. How much personal income tax do I pay in Andorra?3. Who has to pay income tax? 4. Income subject to personal income tax5. Personal income tax exemptions and allowances6. Andorra and the United Kingdom: comparison of personal income …

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Andorra’s new data protection law comes into effect in May 2022

Andorra’s new data protection law, “Llei 29 2021, del 28 d’octubre, qualificada de protecció de dades personals” (LQPD), will enter into force this May to replace the law from 2003. The text and structure are based on the European General Data Protection Regulation (GDPR), which includes new obligations to which Andorran companies will have to adapt their processes. Among others, these requirements include: keeping a detailed record of data processing operations, creating an impact plan and appointing a Data Protection …

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Sentencia

Changes to the Spanish tax form 720 for declaration of assets and rights abroad    

On 27th January, 2022, the Court of Justice of the European Union ruled on the Spanish tax form 720, which obliges holders of accounts in financial institutions, securities, assets, property, virtual currencies or life assurance with a purchase value that exceeds 50,000 euros, and who are resident in Spain, to inform the Spanish Tax Agency about their property and other assets abroad. According to the CJEU, the terms of the form are contrary to EU law, so Spain will have …

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Is Andorra a sovereign country or does it belong to Spain or France?

In the heart of the Pyrenees, sharing borders with Spain and France, lies Andorra, one of the smallest countries in the world. Its area is only 468 km2, but it has managed to preserve its autonomy. One of the recurring questions when talking about Andorra is whether it belongs to Spain or France. Let’s quickly find out: Andorra is an independent country, often described as “a little jewel in the mountains”. Contents: 1.- Andorra, the only co-principality in the world …

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Social Security Agreement between Andorra and Spain, France and Portugal

If you’re considering changing your country of habitual residence and coming to live in Andorra, you’ve most likely already considered the range of advantages such as the language, the quality of life, the lower tax burden, the high standard of state schools, the quality of the healthcare system, the safety, and more besides. An aspect that is of particular interest to those planning to permanently or temporarily relocate to Andorra is the agreement that currently exists between Andorran Social Security …

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