Economy

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millores-poder-adquisitiu

Policies to improve purchasing power                       

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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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The IMF forecasts a strong post-pandemic recovery for Andorra

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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

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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

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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    

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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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tasa-ocupación

Andorra is second in Europe in terms of its employment rate

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A study on the main indicators of the Europe 2020 strategy was presented by Andorra’s statistics department at the end of March. Andorra has the second highest employment rate of any European country This report shows that in 2019 the employment rate of the workforce aged 20-64 was 84.9%. This was almost the highest in Europe, second only to Iceland with 85.8%. Moreover, this percentage is almost 10 points higher than the European indicator, which sits at 75%. This study, …

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medidas-económicas

Andorra receives positive assessments from the rating agencies

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Despite the crisis caused by the pandemic, thanks to the economic measures implemented by the Andorran government, international agencies have given a positive assessment of the country’s credit rating. According to Standard & Poor’s and Fitch Ratings, the country’s credit rating is BBB/A-2 and BBB+, respectively, with a stable outlook, and it is also believed that the principality can weather the negative effects of the pandemic.   Fitch Ratings emphasised that the increase in unemployment has been modest despite the …

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Andorra is to extend the list of countries it has a double taxation agreement with

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In 2021, Andorra plans to extend the list of countries it has signed a double taxation agreement (DTA) with. These treaties are essential to avoiding double taxation on the same basis in the company’s country of origin and the country where the economic activity takes place. New treaties to avoid double taxation Several EU states, such as the Netherlands, Belgium and Hungary, are interested in signing a double taxation agreement with Andorra. At present, it has signed agreements with 8 …

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Fondo-Monetario-Internacional||

Andorra becomes the 190th member of the IMF

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[vc_row][vc_column][vc_column_text]Andorra is now an official member of the International Monetary Fund. Last September, the Consell General (the Andorran parliament) approved the submission of its application to become a member of the IMF. Although negotiations began in January of this year, Andorra’s relationship with this institution is not new. Last Friday, October 16th, the process culminated with the accession of the Principality to the Fund. Andorra’s accession to the International Monetary Fund Becoming part of the IMF is important to Andorra …

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Horitzó 23: Andorra’s economic plan for meeting the challenge of COVID-19 recovery

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Andorra is preparing to deal with the consequences of the crisis caused by the COVID-19 pandemic. As a result, the Andorran government has unveiled a new action plan entitled “Horitzó 23 (H23)”, which outlines a series of measures for reactivating the country’s economy. What does “Horitzó 23” include? This strategic plan comprises 77 actions, spread across 20 initiatives, which are based on three main pillars: social welfare, the economy and innovation, and other measures focused on digital transformation and internationalisation. …

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