The Andorran banking sector comprises a total of five banking groups and has more than 80 years of experience in this activity. It is one of the best jurisdictions in Europe and in the whole world for banking. Why?
1. One of the world’s most solvent and liquid banking environments.
Andorra financial centre average Tier 1 core capital ratio rose by 0.05% to 22.77% across all banks by the end of 2010. Due to the conservative and prudent management of the Andorran Financial system, its liquidity ratio is at 71.76% at the end of 2011.
2. One of the world’s most prudent and rigorous government
Total public debt amounts to around 35% of GDP in 2010 (public debt is estimated to increase to 39% year ending 2011) and Andorra’s public deficit went down from 5% in 2009 to 2.4% in 2010. GDP growth rose by 5.1% in 2010 and government income rose by 12.1% in 2010.
3. Andorra is rated by Standard & Poor’s at A for foreign currency category and AAA for T&C assessments.
4. Competitive tax regime
10% corporate tax on Andorran Companies, (100% foreign ownership of Andorran companies is pending to be approved by parliament in Mid-2012).
No aggressive or excessive marketing itself as a regional hub.
6. Financial Secrecy
Listed on the OECD White List since April 2009. Tax Information Exchange Agreements (TIEAs) are signed on the condition that there is no retroactivity, no fishing expeditions and any request of information has to meet specific requirements and approved by the Judge.
7. Andorra has signed 18 Tax Information Exchange Agreements (TIEAs)
The countries are Argentina, Austria, Belgium, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, Liechtenstein, Monaco, Netherlands, Norway, Portugal, San Marino, Spain and Sweden.
8. Rigorous regulations
Sound and rigorous application of international regulations. Essentially written by its clients, on strict due diligence and know your customer requirements.
9. Andorra is a member of United Nations and Specialized agencies.
The United Nation’s Organization (UNO), UNESCO, World Health organization (WHO), World Tourism Organization, International Criminal Court and many more.