Andorra la VellaEven if the Pyrenean principality tries to get rid of its reputation as a tax haven – it got off the OECD “grey” list in 2010 and renounced its bank secrecy in 2016 -, it remains « the Eldorado of the French riches ». Témoin ces sociétés de conseil en “tax optimization”in “patrimoine management”qui y ont pignon sur rue, et que l’on voit ici calmly explain comment “delocalize” son argent sans necessarily domicilier son entreprise in Andorra − “le beurre et l’argent du beurre, a très franco-française obsession”, smiled one of these counselors. Phantom companies, fictitious jobs, fake invoices, anonymous carriers of funds… the whole panoply is deployed by these offices.
This paragraph from a Le Monde article from a week ago detailing a couple of cases of suspected fraud by French companies through Andorra is one of those published in the French press in recent weeks. Even some investigative reporting with undercover reporters.
The comments indicate the concern that there is in France for this large increase in the number of businesses that either relocate or open a company in Andorra with suspicions in different cases of possible instrumental companies. At the same time, the number of wealthy people requesting to reside in the Principality has increased. To the point of describing the Principality as ‘the gold of the French riches’. The medium points to possible tax frauds that end up with the money in Andorra. LeMonde’s report is entitled “Fiscal fraud: ces milliards qui échappent à l’Etat… et aux Français”
Counseling with a large number of clients
Sources close to consultancies that are dedicated to foreign investment have explained that the phenomenon experienced with France is reminiscent of the ‘boom’ that took place with Spain. While the arrival from the south of new residents, businesses and societies has dropped significantly, it is now the turn of the neighbor to the south. The high tax burden and the level of taxes on fortunes make Andorra an attractive place in terms of taxation.
The campaign carried out by multiple consultancies ‘selling’ Spain the advantages of moving residence and business to the Principality during the end of last year and the one we have in 2024 takes place in France. The feeling that this trend must be stopped in order not to end up having problems has become part of the conversations, according to this source, between professionals in the sector.
The same sources comment that it is necessary to be as careful as possible, both from the sector and the control of the Government and the banks, to guarantee that everything is always within the strictest legality. Precisely, another French medium talks about unscrupulous advisers in Andorra who facilitate the fraud.
VAT fraud, allowing certain business leaders to embezzle millions of euros. The reportage leads the viewers to Andorra, where scrupulous tax advisors help wealthy clients circumvent the tax rules to settle there without any hassle. To hunt down white-collar criminals, the show follows the agents of the Central Office for the Fight against Corruption and Financial and Fiscal Offenses (OCLCIFF), who hunt down fraudsters on a daily basis, with exclusive access to the backstage of their operations.