Andorra has a real competitive advantage compared to other jurisdictions:
-neutrality, stability, security, manpower and costs are all important factors when choosing a base. Low tax is another one. All companies consider taxes as an expense. Thanks to its new tax regime, multilateral and bilateral agreements Andorra is not anymore considered as a tax heaven. International Trading companies, International Management of Intangibles companies, International Investment & Financing companies profit all from an effective tax rate of only 2%. “Local” companies pay a maximum of 10%. Dividends received from Andorran companies are not taxed. If certain minimal conditions are met, Andorran Holding Companies dividends and Capital gains are also tax free.