Company founded abroad: The smallest tax haven: Andorra
Andorra, a principality and small state at the same time, is located in the eastern Pyrenees between Spain and France. In terms of area, it is the largest of the six European dwarf states. Andorra is the only country in the world where there is a dual rule. The function of the head of state is exercised by the bishop of Urgell and the president of France. The tourism industry plays a major role as the most important economic sector.
The population is relatively low and is kept low by low-yielding agriculture. In Andorra, in the year 1950, there were 6,176 people, but in the following decades, Andorra experienced a strong population increase. Today, the population is about 76,000 people. Population growth is mainly due to immigration, especially from Spain, Portugal, and France.
The dwarf state, apart from water, has virtually no natural resources, as only 2% of Andorra’s uncultivated land can be used for agricultural purposes. There is very little industry. The country lives mainly from the tourism industry. An additional significant source of revenue is the sale of electricity generated by hydropower. Andorra’s banking industry is well developed. Andorra grants its citizens extensive tax exemption. Andorra is the only country in the world that completely lacks a tax office.
Outlook as a branch office
Geographically, Andorra is on the same latitude as Rome, which means you can expect almost 300 sunny days a year. However, Andorra offers foreign companies not only pleasant climatic conditions but also tax benefits and subsidies. Another incentive is the political stability of the dwarf state and personal security.