Asian Investment into European Union through Andorra
European Union is one of the most attractives locations for foreign investments. It is the World’s largest single market.
European Union is an economic zone larger than the USA and Japan combined with 500 million customers.
EU holds a Single Currency, where it is more business friendly. Thus, with the single EURO currency, doing business in the EURO area is more cost-effective and less risky.
One set of rules, is a key benefit from the single market is that businesses only have to deal with one set of rules rather than 28 different sets of rules when exporting to or operating in more than one European Union member state.
This has helped to ensure:
- Easier access to funding
- Clearer and more effective legislation
- Protection for shareholders, creditors and employees
- A reduction in the administrative burden on businesses
Also, Andorra, is one of the most frequently used jurisdiction to route investment into Spain and France .
We take the opportunity to highlight the significant benefits of using Andorra to route Asian investment into European Union.
Some of the main benefits of structuring Asian investment into European Union through an Andorra Company include the following:
- 0% dividend, interest and royalty withholding tax based on application of the Spain-Andorra Double Tax Treaty (DTT), as well as EU Parent Subsidiary and Interest and Royalties Directives.
- No withholding tax on dividends, interest and royalties paid out of an Andorra company to a non resident, irrespective of existing of DTT.
- Exemption of dividend income at the Andorra level.
- Opportunity to structure investment using regulated investment vehicles, thus eliminating all Spanish corporate income tax.
- Andorra is a well established holding jurisdiction for Intellectual Property (IP), commonly used by Chinese investing abroad. The protection of IP rights is dealt with extensively in Andorra.
Our team of highly experienced qualified chartered accountants and legal advisers is uniquely positioned to identify all risks and clearly communicate them to clients.
For further details and advise on structuring investment into European Union via Andorra vehicle as well as to discuss your tax planning or company internationalization strategy further, please contact us.