Foreign reversal at the Principality of Andorra

The Law 10/2012 of Foreign Reversal of the Principality of Andorra, enacted the June 21, 2012, regulates the foreign reversals at the country. This law establishes the requisites and procedures for the foreign companies interested to invert in Andorra, including disposals on permissions, constraints and supervision. Also it accosts questions how the national security, the protection of the environment and other factors that can affect the foreign reversals at the Principality. In sum, the law has as a objective promote and regulate of responsible mode the presence of foreign reversals in Andorra.

The foreign investors are those physical or juridical persons that are not resident habitual or societies constituted in Andorra. In other words, any individual or company that do not have his legal residence or was not legally constituted at the Principality of Andorra is considered a foreign investor. To detail more at accuracy are:

• The physical persons no resident in Andorra, always that they do not have of the Andorran nationality.
  

• The legal persons of foreign nationality, included the public entities of foreign statehood.
  

•  The Andorran societies with foreign turnout at his capital or at his laws of vote, direct or indirect, at an equal or superior percentage at the 50 percent. Also they are foreign reversals the destined at branches or other types of permanent establishments in Andorra of no resident; and the effected by other Andorran legal persons when at least the 50% of the laws of vote of his organ of decision belong, directly or indirectly, at physical persons no resident or at foreign legal persons.
  

•  The reversals effected by the titulars of temporal permissions of residence no postponable have the consideration of foreign reversal.
  

•  The public entities of foreign statehood the foreign states, the entities and the public official institutions foreigners and the societies and the public companies of foreign nationality when the titular of most of his capital belong at any of the entities, or are subjected at his effective control or have the qualification of public for the legislation of the country of origin.
  

•  The Andorran legal persons when capsize his nationality, or when the foreign turnout at the same becomes equal or superior at the 50 percent.
  

•  The foreign legal persons when become by right Andorran, or when the foreign turnout at the same reduces at less of the 50 percent.

The types of reversals include a wide gamma of economic activities and sectors, how now:

1. Reversals at companies: Acquisition of turnouts at Andorran companies already existent or creation of new companies in Andorra.
   

2. Real-estate reversals: Purchase of real-estate properties, how now terrains, edifices or trading venues, with the aim to develop real-estate projects or simply for personal or trading use. Referent the Law 3/2024, enacted in Andorra the February 1, 2024, implies the tax on the real-estate foreign reversal. This law establishes a tax on the real-estate reversals realised by foreign investors at the Principality of Andorra. The disposals of the law include the definition of the passive subjects of the tax, the types imposed applicable, the requisites and procedures for the payment of the tax, as well as the sanctions for illegality. The principal aim of this law is to regulate and record the foreign real-estate reversals with the aim to maintain a control on this type of economic activity at the country.
   

3. Financial reversals: Acquisition of values, titles, fund of reversal or other financial instruments emitted by Andorran or international entities.
   

4. Reversals at strategic sectors: Reversals at strategic considered sectors for the economics of the Principality of Andorra, how now the tourism, the tech, the health, the nurture, among of other.
   

5. Reversals at specific projects: Turnout at projects of public or private interest, how now infrastructures, rural development, renewable energy, among of other.
   

This law establishes the requisites and procedures that have to track the foreign investors to carry out these activities of reversal in Andorra.