Historically, Andorra has based its business model on the ski and shopping tourism sector, the real estate industry and the financial system.

The economic crisis and the end of the classical model has forced the country to create a new economic model based on the liberalization of foreign investment attracted by a competitive tax system.

Andorra has a new fiscal framework characterized by the creation of four taxes:

• A tax on the income of non-residents, In place since January 1st, 2015, with an overall rate of 10%.

• A tax on the income of non-residents, In place since January 1st, 2015, with an overall rate of 10%.

• A corporate tax In place since January 1st, 2012, with an overall rate of 10%, a special regime where for companies managing internationally intangible assets. Companies holding foreign securities have, under certain conditions, an exemption on the tax base for the dividends they receive from their foreign subsidiaries and capital gains they collect from their transmissions.

• General Indirect Tax (IGI – the equivalent of VAT) In place since January 1st, 2013, with a base rate of 4.5%.

This tax makes Andorra particularly competitive for entrepreneurial projects in Andorra as well as abroad.