FOREIGN INVESTMENT IN ANDORRE

Law 10/2012 21 of june foreign investment in Andorra

Acquisitions, for any purpose, at the start of assets by:

a) persons not resident in Andorra, provided they do not have the Andorran nationality.

b) legal persons of foreign origin

c) Andorran companies with foreign participation in the capital or the voting rights, directly or indirectly, by a percentage equal to or greater than 50 Foreign investments are also those for branches or other permanent establishments of non-­ residents in Andorra; and those made by other legal Andorran when at least 50% of the voting rights of its decision-making body belongs, directly or indirectly, to persons not resident or foreign legal persons.

AUTHORITZATION OF THE FOREIGN INVESTMENT

• The ministry responsible for foreign investment must verify, among other things, that investment cannot produce an adverse effect on competition, the labour market and the balance of public resources, and must solve a reasoned request for authorization of foreign investment within a period of one month.
• The ministry responsible for foreign investment can only refuse permission for foreign investment, so always motivated when the investment can harm, even occasionally, the exercise of public power, sovereignty and national security, public order and economic development, the environment, public health or general interest of the Principality and any FDI-related sensitive goods.

FORMS OF FOREIGN INVESTMENT

Foreign investments can materialize through cash or non-cash, and can be made through any of the following ways:

Direct investments

Direct investments are investments that may carry through participation in Andorran companies or through the creation or expansion of branches or other permanent establishments.

• Prior authorization is required to make direct investments consisting of shares or rights to acquire an Andorran company when as a result of the acquisition, the acquirer has directly or indirectly holding more than 10% of the share capital or rights vote. The investments of less than 10% are subject to subsequent declaration in the Register of Foreign investments.

Portfolio investments

• Portfolio investments are investments that may carry through the subscription of securities representing securities, except those considered direct investment issued by natural persons or legal entities, public or private Andorran shares or preferred shares that do not including voting rights and shares in investment funds regulated under the rules of the financial system.
• investment portfolio is free and are not subject to the duty to request permission, or in the obligation of subsequent declaration, except for the subscription of shares in a collective investment undertaking under Andorran law in the terms established by Law 10/2012.

Investments in real estate

• investments in real estate are investments that may carry through the acquisition of ownership and other real rights on properties, and concessions involving use of private real property located in the Principality of Andorra.
• Are subject to the prior investments in properties that may make legal persons of foreign nationality, including public entities sovereignty foreign, that investments in real estate have to be necessary linked to the activity of displacement person
• Are also subjected to the prior investments in properties that may make legal persons of foreign nationality, including public institutions of foreign sovereignty. These investments in real estate have to be necessarily linked to the development of the activity of the legal person.

• Unable to authorize investments in properties that may make foreign legal persons engaged in the acquisition or construction of buildings in order to sell them, including leasing.

Other forms of investment

• There are other forms of investment that you want to be notified otherwise not covered in previous sections such through participation in cooperatives or community property.
• For investments other forms of investment is required prior authorization.