UNIQUE PROPOSITION FOR IT INDUSTRY
Woodfield Global & Principality of Andorra
Woodfield Global
We are an international service provider with a core emphasis on wealth management, corporate structuring, investment consulting and business immigration.
As a community project Woodfield Global promotes a new opportunity for IT companies to start their international expansion from The Principality of Andorra thanks to its Preferential Tax Treatment which allows industry players enjoy 2% profit tax option and 0% tax on dividends.
Woodfield Global
We are an international service provider with a core emphasis on wealth management, corporate structuring, investment consulting and business immigration.
As a community project Woodfield Global promotes a new opportunity for IT companies to start their international expansion from The Principality of Andorra thanks to its Preferential Tax Treatment which allows industry players enjoy 2% profit tax option and 0% tax on dividends.
Woodfield Global, together with the Government of Andorra and UBS Consulting, became the first consortium in Andorra to launch this project in 2019. At the moment, permits for preferential treatment have only been issued to 4 companies, 3 of which were obtained with the assistance of Woodfield Global.
About the Principality of Andorra
The Principality of Andorra is located on the eastern slopes of the Pyrenees mountains, in the heart of Europe, right between Spain and France. It boats exquisite landscapes, an excellent ecological profile and a fertile climate.
Andorra’s success in the sphere of tourism stems from major attractions such as world-famous ski resorts, to hot springs and superb golf courses; alongside that, a low crime rate, high standards of life, medicine, education, and a relatively low cost of living, uphold the economy.
The capital of Andorra is Andorra la Vella. The nation’s total area is 468 km2 and the mean height of land above sea level is 1.996 m. To the South, the microstate borders the regions of Catalonia: La Cerdaña, el Alto Urgell and el Pallars Sobirá. To the north, with the Department of Ariènge, it borders the French region of Midi Pyrénées. Almost 30% of the Andorra territory is held in national parks, the largest of which, Madriu Perafita Claror, is under the protection of UNESCO.
Andorra’s success in the sphere of tourism stems from major attractions such as world-famous ski resorts, to hot springs and superb golf courses; alongside that, a low crime rate, high standards of life, medicine, education, and a relatively low cost of living, uphold the economy.
The capital of Andorra is Andorra la Vella. The nation’s total area is 468 km2 and the mean height of land above sea level is 1.996 m. To the South, the microstate borders the regions of Catalonia: La Cerdaña, el Alto Urgell and el Pallars Sobirá. To the north, with the Department of Ariènge, it borders the French region of Midi Pyrénées. Almost 30% of the Andorra territory is held in national parks, the largest of which, Madriu Perafita Claror, is under the protection of UNESCO.
Andorra has no airport, however, using the roads that lead to Spain and France allow you to reach international airports of Barcelona or Toulouse in only about two hours. Andorra also has helicopter connections to the largest cities in Spain, France, Portugal, as well as the Canary and Balearic Islands.
Andorra is not a member state of the European Union, but it still provides its citizens with free movement and residence in Spain, Portugal and France (including Monaco). This includes simplified registration of long-term visas and residence permits in other EU countries, as well as in the USA, Australia, Great Britain, Japan and Singapore. The languages spoken in Andorra are Catalan, Spanish and French, while the official currency used in the country is the Euro.
Andorra is not a member state of the European Union, but it still provides its citizens with free movement and residence in Spain, Portugal and France (including Monaco). This includes simplified registration of long-term visas and residence permits in other EU countries, as well as in the USA, Australia, Great Britain, Japan and Singapore. The languages spoken in Andorra are Catalan, Spanish and French, while the official currency used in the country is the Euro.
Why Andorra?
As of 2019, the Principality of Andorra has one of the highest levels of GDP per capita in the world, reaching an average of 40,518.50 Euros. Hence why, according to the International Living Index, it is not a surprise that Andorra is ranked 12th in the world for its standard of living. This is also confirmed by the fact that Andorra is one of the top five safest countries in the world for living and tourism, which is where claims “political stability” and “no crime” came from. Furthermore, according to a rating by the “American Institute for Health Metrics and Evaluation” and a study by the world's leading medical journal “The Lancet”, the leader in the "best healthcare system in the world in 2018" list was Andorra, and as of 2019, it became the country with the longest life span.
General primary education in Andorra is free. Children are taught five languages at school (Catalan, English, French, Spanish and Portuguese), and mountain skiing is an obligatory part of the general education program.
Andorra is listed among the 25 best countries in the world for business. Following the adoption of a law allowing foreigners to own businesses in its jurisdiction, Andorra has actively strengthened its position as a financial centre over the past two years. The banks of Andorra are included in the top-20 of the most reliable banks in the world in terms of personal capital keeping.
General primary education in Andorra is free. Children are taught five languages at school (Catalan, English, French, Spanish and Portuguese), and mountain skiing is an obligatory part of the general education program.
Andorra is listed among the 25 best countries in the world for business. Following the adoption of a law allowing foreigners to own businesses in its jurisdiction, Andorra has actively strengthened its position as a financial centre over the past two years. The banks of Andorra are included in the top-20 of the most reliable banks in the world in terms of personal capital keeping.
Prices for luxury goods, perfumes, clothes, foods, alcohol, tobacco, and appliances are 15-30% lower than average European prices thanks to the lowest taxes in Europe.
The Principality has one of the most advantageous tax systems in Europe and even the world, whether it concerns individuals or "non-physical" entities such as companies. Here are the elements to take into account regarding the global framework of taxation and corporate tax rate in Andorra:
The Principality has one of the most advantageous tax systems in Europe and even the world, whether it concerns individuals or "non-physical" entities such as companies. Here are the elements to take into account regarding the global framework of taxation and corporate tax rate in Andorra:
- the corporate tax rate varies from 2% to 10% maximum;
- no tax on dividends or on wealth;
- absence of inheritance rights;
- no real estate tax;
- no tax on company cars;
- low social security (CASS) contributions;
- the VAT rate (IGI, Indirect General Tax) is the lowest in Europe: 4,5%.
Preferential tax treatment for IT companies
Currently, the Government of Andorra has prepared a special offer (preferential tax treatment) for IT companies involved in the development and sale of software and applications. Moreover, such tax treatment is suitable for companies whose activities are classified as the “exploitation of intangible assets”, for example: trade marks, copyrights, patents and licenses.
Proposition concept:
Other tax treatments in Andorra
0% dividend tax
Andorran companies are not responsible for withholding tax from dividends paid to the resident shareholders.
10% Impuesto de sociedades
The Andorran corporate tax rate is 10%, and all companies operating in Andorra are identified as taxpayers.
4,5% General indirect tax IGI (VAT analogue)
General indirect tax (IGI) is imposed on the operations of the delivery, supply and import of goods and services to the territory of Andorra; whether carried out periodically or for non-economic purposes and needs, as well as for the development of its business activities and imports.
0% Holding regime
A company applying for such a tax treatment cannot conduct ordinary business activities in Andorra but has the right to own shares or interest in other companies that pay income tax at a rate of at least 4% in their country of registration. Dividend income and capital gain of such companies are not taxed, if the share (direct or indirect) in equity, assets, property or voting rights is equal to, or exceeds 5%, and the tenure is at least one year long.
Offer
Woodfield Global assists in obtaining permits for preferential tax treatment and ensures that all the basic requirements stated by the Government of Andorra are met:
- registration of a company with an authorized foreign owner;
- having office registered in Andorra;
- presence of at least one employee;
- existence of a current account in a local bank;
- filing of the petition to the tax office with a detailed business plan and the company profile.
Additional services provided by Woodfield Global in Andorra
- Conferment of a tax residency to the company beneficiary (passive and active residences, residence permit, citizenship);
- Advice on further placement and investment of funds accumulated at the company current accounts;
- Selection of a datacentre that is most suitable for the deployment of customer equipment, or premises for creating your own datacentre in neighbouring countries;
- Recruitment of competent personnel and outsourcing service providers;
- Search for residential and office real estate in the Principality, or neighboring European countries;
- Support for business immigration (obtaining a residence permit and citizenship through investment);
- Support and supervision of construction, design, and renovation of residential and commercial real estate.
SUCCESS STORY
of Pirineu Administrative Servei
- A service company providing services on business information security.
- The main client pool is located in Russia, the Republic of Belarus, and Kazakhstan.
- Registered in the Principality of Andorra.
- The data-centre is located in a neighbouring country.
- In 2019, it became a company covered by the preferential (2%) tax treatment.
- Beneficiaries became residents of Andorra.
Smooth procedure of company registration
The following entity models exist for company formation in Andorra:
- Sociedad Anónima (SA), a joint-stock company with a minimum capital requirement of 60,000 EUR, and
- Sociedad Limitada (SL), a limited liability company with a minimum capital requirement of 3,000 EUR
- The company must have at least one shareholder. They can be a local as well as a foreign citizen with Andorran residency,
- The company must have a director(Administrador) who has an Andorran residency,
- The company must have a registered office in Andorra.
Steps to create a company in Andorra
Woodfiled Global’ s mission is to make the registration procedure as clear and understandable as possible.
1
Request for foreign investment authorization. Each shareholder / non-resident partner must request prior authorization of the foreign investment in an Andorran company.
2
Pre-opening of the bank account for the company at the local bank. Such account is required even if in the future it is not planned to be used for daily operations. Its main purpose at this stage is the placement of company share capital.
3
Constitution and registration of the company in the commercial register. It consists of two steps:
• the statutes / articles of incorporation are formalized before an Andorran notary,
• the company is registered in the Andorran commercial trade registry.
• the statutes / articles of incorporation are formalized before an Andorran notary,
• the company is registered in the Andorran commercial trade registry.
4
Opening of account(-s) at the banks outside the Principality of Andorra. Woodfield Global independently supports its clients from all over the world in getting acquainted with the procedure of opening the bank account and in making an objective choice of the bank to cooperate with.
Residency in Andorra
Over the last few years, residency and tax residency have become one of the most important methods of wealth planning and structuring for upper-income families. Andorra is an attractive destination for citizens of many countries who are interested in living in Europe but prefer the remarkable growth rates and low taxes outside the EU tax network.
There are also a number of other advantages that come with living in the Principality of Andorra. These include reliability, high standards of living, idyllic nature, a variety of leisure and recreational activities, world-class educational and healthcare systems, favorable fiscal terms, and of course, the location of the microstate: two hours by car or half an hour by helicopter from the glorious cities of Barcelona and Toulouse.
Andorran immigration law provides two residence categories: Passive residence (residence without permission to work) and Active residence (residence with permission to work).
There are also a number of other advantages that come with living in the Principality of Andorra. These include reliability, high standards of living, idyllic nature, a variety of leisure and recreational activities, world-class educational and healthcare systems, favorable fiscal terms, and of course, the location of the microstate: two hours by car or half an hour by helicopter from the glorious cities of Barcelona and Toulouse.
Andorran immigration law provides two residence categories: Passive residence (residence without permission to work) and Active residence (residence with permission to work).
An active residency offers immigrants the same rights as citizens of the Principality, including the right to work, medical care, and pensions. It is necessary to spend at least 183 days a year in the Principality and to register a company in Andorra, 85% of which profits are generated outside of Andorra.
The candidate for active residency must meet the following requirements:
- to spend at least 183 days within Andorra (excluding holidays and business trips);
- to found or acquire a company in Andorra or participate with at least 20% of an existing company. The applicant must furthermore take up a paid position as managing director or member of the board of directors;
- to hire at least one member of staff with the lowest applicable wage (halftime) – 720 EUR/month incl. taxes);
- to lease/purchase an office space(at least 20 sq.m);
- to maintain the company business which 85% of profits are generated from the sale outside of the Principality of Andorra;
- to contribute to the Andorran social insurance system with approximately EUR 430 per month which will give the right to access to the Andorran, French and Spanish health system.
Acquiring your residency in Andorra
Woodfield Global’s experience in the Andorran market enables us to provide comprehensive advice when applying for residency and selecting the option that is most suitable for your needs and objectives, along with complete administrative management. This is what the regular application procedure looks like:
1
Identifying the type of residency most suitable for applicant’s needs.
2
Review of the documents presented for application file.
3
Selecting the real estate investment vehicle (purchase or lease) that suits you most.
4
Opening an account at the local bank
5
Depending on the type of residency you chose there are certain requirements which you have to meet:
- founding or acquiring a local company, or a share in a company(for active residence)
or
- investment requirements for passive residency
- founding or acquiring a local company, or a share in a company(for active residence)
or
- investment requirements for passive residency
6
Applying to the Department of Immigration with the application file
7
Medical check-up in Andorra
8
Interview at the Department of Immigration
9
Obtaining the residence permit card
10
Registration at one of the local municipalities.
Andorra Citizenship by Naturalization
Any foreign individual that complies with the following requirements is eligible for Andorran Citizenship:
• hold residency in Andorra for 20 years(active) or 17 years( passive) residency, or
• complete your studies in Andorra’s school system and reside in the country for ten years, and
• renounce your original nationality, and
• have a clean criminal record.
Once you’ve fulfilled these criteria, the Ministry of Interior of Andorra will handle the rest.
Investment in Andorra real estate
Every year, the Principality of Andorra, with an average population of 77,000 people, welcomes around 9 million tourists. Real estate here has therefore always been an object of special interest to investors. Recently, its position has significantly strengthened due to the fact that the Principality is gradually becoming an important financial centre of Europe. According to the “Foreign Investment Law 2012”, almost all the restrictions that existed on the Andorran real estate market over the past 75 years, have been lifted. Foreigners, as well as foreign companies, have the right to purchase real estate in Andorra without any restrictions.
There is no real estate tax in Andorra for both residents and non-residents of the Principality. The only payments are deductions to the administration of local districts, and they usually do not exceed 100 euros per year for a chalet with an area of more than 500 m2.
Today, Andorran banks offer mortgage loans to residents of up to 80% of the value of the property, and up to 60% to non-residents. Credit interest rates start from 1.4% and do not exceed 3.6%.
Profitability of commercial real estate, such as offices, warehouses, shops, supermarkets or sales premises, is 5-7% per year. In terms of investment, residential real estate is also a possible consideration. Despite the fact that the ski season in Andorra only lasts five months, the rental annual yield still reaches 10-12% since tourism in Andorra does not stop at all during the summer, it is replaced with other trends such as cycling, trekking, golf, ecotourism, and many more.
Woodfield Global will help you choose the real estate investment that will suit your lifestyle the most. Regardless of whether it is a luxurious chalet at the foot of an endless ski slope, a magnificent house near a golf course, a designer apartment in the urban quarter, or an elegant penthouse in the financial centre, you will always be able to appreciate the individual approach and sophisticated taste of our advisors.
There is no real estate tax in Andorra for both residents and non-residents of the Principality. The only payments are deductions to the administration of local districts, and they usually do not exceed 100 euros per year for a chalet with an area of more than 500 m2.
Today, Andorran banks offer mortgage loans to residents of up to 80% of the value of the property, and up to 60% to non-residents. Credit interest rates start from 1.4% and do not exceed 3.6%.
Profitability of commercial real estate, such as offices, warehouses, shops, supermarkets or sales premises, is 5-7% per year. In terms of investment, residential real estate is also a possible consideration. Despite the fact that the ski season in Andorra only lasts five months, the rental annual yield still reaches 10-12% since tourism in Andorra does not stop at all during the summer, it is replaced with other trends such as cycling, trekking, golf, ecotourism, and many more.
Woodfield Global will help you choose the real estate investment that will suit your lifestyle the most. Regardless of whether it is a luxurious chalet at the foot of an endless ski slope, a magnificent house near a golf course, a designer apartment in the urban quarter, or an elegant penthouse in the financial centre, you will always be able to appreciate the individual approach and sophisticated taste of our advisors.
Investment in Andorra real estate
Every year, the Principality of Andorra, with an average population of 77,000 people, welcomes around 9 million tourists. Real estate here has therefore always been an object of special interest to investors. Recently, its position has significantly strengthened due to the fact that the Principality is gradually becoming an important financial centre of Europe. According to the “Foreign Investment Law 2012”, almost all the restrictions that existed on the Andorran real estate market over the past 75 years, have been lifted. Foreigners, as well as foreign companies, have the right to purchase real estate in Andorra without any restrictions.
There is no real estate tax in Andorra for both residents and non-residents of the Principality. The only payments are deductions to the administration of local districts, and they usually do not exceed 100 euros per year for a chalet with an area of more than 500 m2.
Today, Andorran banks offer mortgage loans to residents of up to 80% of the value of the property, and up to 60% to non-residents. Credit interest rates start from 1.4% and do not exceed 3.6%.
Profitability of commercial real estate, such as offices, warehouses, shops, supermarkets or sales premises, is 5-7% per year. In terms of investment, residential real estate is also a possible consideration. Despite the fact that the ski season in Andorra only lasts five months, the rental annual yield still reaches 10-12% since tourism in Andorra does not stop at all during the summer, it is replaced with other trends such as cycling, trekking, golf, ecotourism, and many more.
Woodfield Global will help you choose the real estate investment that will suit your lifestyle the most. Regardless of whether it is a luxurious chalet at the foot of an endless ski slope, a magnificent house near a golf course, a designer apartment in the urban quarter, or an elegant penthouse in the financial centre, you will always be able to appreciate the individual approach and sophisticated taste of our advisors.
There is no real estate tax in Andorra for both residents and non-residents of the Principality. The only payments are deductions to the administration of local districts, and they usually do not exceed 100 euros per year for a chalet with an area of more than 500 m2.
Today, Andorran banks offer mortgage loans to residents of up to 80% of the value of the property, and up to 60% to non-residents. Credit interest rates start from 1.4% and do not exceed 3.6%.
Profitability of commercial real estate, such as offices, warehouses, shops, supermarkets or sales premises, is 5-7% per year. In terms of investment, residential real estate is also a possible consideration. Despite the fact that the ski season in Andorra only lasts five months, the rental annual yield still reaches 10-12% since tourism in Andorra does not stop at all during the summer, it is replaced with other trends such as cycling, trekking, golf, ecotourism, and many more.
Woodfield Global will help you choose the real estate investment that will suit your lifestyle the most. Regardless of whether it is a luxurious chalet at the foot of an endless ski slope, a magnificent house near a golf course, a designer apartment in the urban quarter, or an elegant penthouse in the financial centre, you will always be able to appreciate the individual approach and sophisticated taste of our advisors.
Services
1
Family office services
- Financial and tax planning of family-run businesses;
- Corporate property structuring;
- International investment advice;
- Keeping data secure;
- Legal support for transactions and current financial services;
- Generation and registration of trusts and family foundations;
- Concierge service.
2
Investments in Europe and Asia
- Investing in commercial and residential real estate;
- Opening deposit and brokerage accounts in foreign banks.
3
Opening bank accounts and registering companies in more than 20 countries.
4
Data security
- Formation of a company internal information security policy;
- File storage in a high-security datacentre in Switzerland;
- Providing ready-to-use remote workplaces: accounts + chat + mail + different security features (panic button, IP addresses etc); virtual machines of any configuration, protected by hardware firewalls and resources (memory, disks, processors) for rent.
5
Business immigration
- Getting a residence permit or citizenship in the countries of Europe, Asia, North and Central America
- Obtaining and ensuring tax residency of a number of European countries;
- Opening of private accounts and registration of private companies in the country of new residence;
- Providing substance for compliance under the legislation of the country of registration.
6
International tax planning
- Modes of business investment and reinvestment;
- Secure asset ownership rights (real estate, interests, shares, trademarks);
- Selection of the foreign jurisdiction most suitable for the client’s goals;
- Clarification of the characteristics of legislation and taxation of individual countries;
- Assistance in license acquisition.
6
Accounting and business legal support in Russia and abroad.
8
KYC and KYB for compliance departments.
9
Providing access to corporate information and ordering documents online using our own platform https://platforma365.io/.
Contacts
 | 22, Bolshoy Predtechenskiy pereulok, 4L, 123376, Moscow, Russian Federation |
 | +7 (926) 590-21-87 +7 (985) 099-95-75 |
 | +17873053464 +17873380331 |
 | info@woodfield.global |
Any questions?
© 2010 - 2020 Woodfield Global.
All Rights Reserved.