25.6 C
New York
Wednesday, November 6, 2024

Legal loophole to save taxes with the purchase of luxury vehicles in Andorra

Legal loophole to save taxes with the purchase of luxury vehicles in Andorra

Andorra la VellaDifferent businesses in the Principality have found a vein with the sale of high-end cars to French people. Full service is provided. A company is opened in the name of the non-resident and the car is bought and registered in the name of this company. The saving of money multiplies the cost to society (about 6,000 euros), which has no activity, when the first car is bought.

Recently, the French authorities showed their anger at what is happening with the numerous cases of speeding fines to French people driving luxury cars with Principality registrations. If you buy a second car, the savings are already total. French officials announced that they have detected a French citizen who has created a ‘scuderia’ of Porsches.

Savings of nearly 100,000 euros

In a vehicle over 300,000 euros the saving is close to 100,000 euros. The businesses involved clearly state this. Let’s analyze a Ferrari. The cost price is the same: 225,000 euros. In Andorra the IGI would be 10,125. And you need to add less than a thousand euros between administrative procedures and registration plates. Total: 236,000 euros with Principality registration.

If it is done in France, more than 100,000 euros must be added to the 225,000 euros of cost. The TVA is 45,000, plus 60,000 COâ‚‚ tax and 6,000 regional tax. Total: 332,500 euros with French registration.

Savings: 95,683 euros from which 6,000 must be taken from society. Rounding off: 90,000. And from the second car, you no longer need to add the 6,000 euros.

The businesses are in charge of all the processing, both of the company and of the vehicle registration. And remember that this form “to save the VAT and the carbon tax”. And they add that the same type of ‘legal loophole’ allows it to be put in the name of the Andorran society, and registered, “all types of vehicles such as cars, motorcycles or boats)”.

When setting up your company in Andorra (without necessarily being resident in the country), you have access to a multitude of advantages. The first concerns the purchase of a vehicle by your company. The concept of company vehicle does not exist in Andorra, your company can buy all types of vehicles (car, motorcycle, boat).

You can buy top-of-the-range vehicles without VAT, without carbon tax and with a yellow card (equivalent to a gray card) and registration for between €150 and €250, regardless of tax authority.

Source link

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe

Latest Articles