Andorra Cryptocurrency & Investment
If you are trading or you own a company that works with currencies, and the Bitcoin or Ethereum market is important to you, moving to Andorra can be the best decision for your business.
All professionals that work with Blockchain technology from Andorra or cybersecurity will find the perfect balance between tax advantages and investing. Currently, in the city of Andorra la Vella, many people are dedicated to trading Bitcoin.
In this article, we explain in detail the current tax situation and conducting a crypto business in Andorra.
Andorra Crypto Tax
On the one hand, many experts in the crypto Andorra sector choose to get residency in the country because of the advantageous tax rate. The maximum taxes per year are of 10% corporate tax, making Andorra an extremely attractive destination to live and work.
Setting up a business in Andorra, is perfect for families or professionals, that are looking to invest in a safe environment, fiscally protected by the top government officials.
The laws and Andorra Tributs have never changed radically because of their political interests to attract foreign capital and investors.
In the other hand, the growth and mentality of the nation regarding new technologies are also important. There are several stores available where you can completely pay with Bitcoin.
Can All Crypto be Taxed at 0% in Andorra?
The country already established a 0 % rate of wealth and society tax. As, for crypto assets they established a maximum of a 10% annually. At the level of personal income tax, personal gains are 10%, but the local government has been reviewing the possibility of changing the existing laws.
As an International country, Andorra tributs, open to a growing economy and society that is trying to integrate technological innovation, where the laws and legislation in Andorra, are in favor of the development of digital e-sports, gaming, and digital assets: in Andorra, cryptocurrencies have a very advantageous position, in comparison to other European autonomous legislations.
Law Regulating Blockchain Technology
Andorra is improving to regulate the legal and economical framework of blockchain, cryptocurrency, and NFT technology that will receive with their open arms, the regulation of cryptocurrencies in the country. There is still no European country that has accepted to legalize the process, but the country could be among the first in Europe to have the best legal framework accepted.
In addition, if the country’s efforts to open up internationally attract more capital and investment, Andorra will transform its economy into the Crypto and blockchain sector, to one of the most advanced in Europe.
The tech community strives to create many Coworking companies , and looking for people dedicated to or developing a specific project related to cryptocurrencies or blockchain, cybersecurity laws.
New accepted Law
on Electronic Trust
To regulate and help cryptocurrencies and tokens grow, the Andorran government proposed to host a local meeting with concerns about international “fraud” of digital assets.
A new country’s regulation of digital assets will attract foreign investment by creating a securities market through the blockchain and cybersecurity matters.
Rumors of creating a license for companies operating with crypto assets would possibly be done in cooperation with the AFA (Andorran Financial Association). Besides, this regulation would allow banks to develop another financial activity parallel to traditional banking.
Blockchain Spain or United Kingdom
Blockchain projects in Andorra and mining are already a reality. Several companies from United Kingdom or Spain, engaged in mining different cryptocurrencies already decided to obtain a tax residency in Andorra. The principality is known for its focus online.
Andorra’s digital nomad residency program soon will be another advantage for citizens to enjoy. Andorra is committed to technology as a way to make life easier for its inhabitants. The new visa program is no exception, as it is a way to innovate and adapt to the modern way.
Bitcoin Projects
It is a fact that Bitcoin mining companies are present in the country. Industrial properties are available for rent, server and IT infrastructure can be installed in suitable conditions.
Electricity rates are lower than in neighboring countries such as Spain and France. According to official Eurostat figures, Andorra has one of the lowest electricity prices in Europe. Small principality has a price of €0.133 per kilowatt-hour (kWh), while the average in Europe is just over €0.2126 per kWh.
Apart from this, Andorra’s electricity infrastructure is extremely stable and blackouts or downtime are quite uncommon when compared to Spain, to give an example.
Finally, Andorra is one of the few countries in the world that offers a fast internet connection with 100% fiber-optic coverage and secure VPN service. These and other lifestyle factors can make Andorra a suitable destination for your digital currency/cryptocurrency project.
Andorra Cryptocurrency
With blockchain activities and projects, Andorra is a country seeking to provide similar support in this vertical as Malta. Principality tries to attract entrepreneurs or already consolidated companies to develop cutting-edge technology on-site. A non-profit association called AndBlockchain is constantly pushing for crypto legislation, to obtain all possible benefits for people investing in crypto money in Andorra.
Therefore, if you have a blockchain or mining bitcoin project, you may be interested in moving to Andorra.
Open – Crypto Company
Are you dedicated to the crypto world and thinking if you can incorporate a company in Andorra? We can help you. Being an Andorran resident helps you to invest in cryptocurrencies, such as Bitcoin, and plan income tax with one of the lowest rates in Europe.
Can I bring my crypto company to Andorra? As long as you have all the money declared and justified (as in any type of business), yes. Simply present the origin of your funds and meet a few other requirements to open a legal business in the Principality. At least two out of five Andorran banks are ready to accept clients related to this sector.
Andorra Residency Rules
To open a company in Andorra and acquire an active residency permit, you will need to fulfill the following requirements:
- Live in the country for more than 183 days.
- Own more than 21% of the share capital of an Andorran company
- Be a part of the administrative body of an Andorran company
- Deposit of €15,000 to the AFA (Andorran Financial Authority)
Investing in Cryptocurrencies
Etherum from Andorra
If you are a trader investing in digital currencies, you can continue trading while being a resident in Andorra. Residency in Andorra is an attractive option for various profiles and lifestyles. There are options available to get a passive residency for international traders.
As a resident in Andorra, you are fully subject to income tax on your worldwide income. However, you may qualify for tax exemptions including 0% capital gains from publicly traded shares under certain conditions. We recommend an initial analysis of your business activities, types of investments to properly assess potential tax implications in Andorra.
Ultimately, your residence must be properly maintained under international tax treaty rules, and the definition of a tax residence in Andorra for neighboring countries is quite clear. “Impuestos Andorra“.
