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