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Cryptocurrencies in Andorra

2021-07-15

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Investing in cryptocurrencies in Andorra can bring you great advantages, especially if you want to enjoy all the benefits in terms of taxation. Crypto has helped multiply the income of many people and companies. But what is it like to invest in cryptocurrencies in Andorra?

When you invest in cryptocurrencies or any other business method and you see results, the bank account goes up. However, the more money we generate, the more that goes into taxes. The ways that some countries pay taxes can tire many people. For this reason, they look for a way to do it in another place with greater benefits. The easiest and most legal way is to change your residence to another country and pay taxes there. The Principality of Andorra in recent years has become an ideal country for investors or for those who want to create a company in the Principality of Andorra.

Invest in cryptocurrencies in Andorra

Andorra is one of the countries that is most committed to the most innovative business markets. As is the blockchain and cryptocurrencies. Currently, the Andorran jurisdiction is working to regulate this sector. So a bill is in development. This speaks very well of how the principality seeks to promote cryptocurrencies in Andorra.

If you dedicate yourself to trading in cryptocurrencies, you can do it without problems from Andorra. The economic benefits in taxation are a key factor in deciding. In fact, these are what make many decide to obtain a residence in Andorra. The last year has seen a growth of investors in cryptocurrencies due to the tax advantages of the country.

As you can see, it is the ideal time to start investing in cryptocurrencies in Andorra. This is because the government of the country wants to include digital currencies in its regulatory framework. With this bill, it is sought to offer a better tax treatment to investors of this business model.

Andorra may become one of the first countries to have legislation for these currencies. It is a way to bet big on this new way of obtaining and safeguarding our money. Andorra knows that cryptocurrencies and blockchain are the future, with an already present more than promising.

How are virtual currencies taxed in Andorran taxation?

Andorra has a very favorable tax system. This with the aim of bringing in new investors in crypto and other forms of business. Which turns out to be a huge draw for many. Above all, if we compare with other countries close to the Andorran principality. Its benefits make many people make the decision to change residence.

In Andorra, the proceeds from the purchases and sales of cryptocurrencies through trading are taxed at the maximum income tax rate. This means that only 10% of what is generated is paid. In comparison with Spain, for example, where this activity is taxed between 19% and 23%. As you can see, being in Andorra you would be paying half of it. Which results in a significant savings percentage.

This 10% percentage may vary once the new bill takes effect. Taking into account that what they are looking for is to be more flexible with the subject of cryptocurrencies in Andorra. So this will be a more favorable percentage. However, for now, these are considered a normal asset like any other. For this reason, the person who pays by doing this practice will work under that 10%.

The new legislation seeks to change the landscape of how cryptocurrencies are taxed in Andorra. This project bears the name of “Horitzó 23” and will also cover other economic sectors. It also aims to face the consequences of the Covid-19 pandemic.

Cryptocurrency mining in Andorra

Cryptocurrency mining is a vital activity for their development. Another reason to generate cryptocurrencies in Andorra is the infrastructure conditions. Since it not only offers interesting tax benefits. But having the right technologies to do mining is important. Currently, Andorra is a country that offers you the best conditions in the region for this.

First of all, Andorra has one of the lowest electricity rates in Europe. In the principality, you pay € 0.134 per kilowatt hour, in most European countries the rates exceed € 0.20. In addition to this, we must add that the optimization of the service is one of the best. In Andorra, the electrical system is characterized by being stable and efficient. Blackouts or lack of service are almost nil, compared to other countries in the European region.
Similarly, the possibility of renting properties is offered. This with the intention of creating exclusive servers for mining. When it comes to practicing this activity in cryptocurrencies, the conditions to do so will not be a problem. The small principality gives you the best tools for optimal mining work.

Highest Internet connection

We could not leave without highlighting another of the most significant features of Andorra. A very important one for cryptocurrency mining. Another clear objective of the principality has been to be the country with the best telecommunications in Europe. With the intention of attracting those who are responsible for generating money through digital businesses. For this, Andorra offers one of the best Internet coverage in Europe.

All telecommunications that take place in Andorra are transmitted by fiber optics. There is not an Andorran home that does not have this coverage. This guarantees a 700 Mbps internet connection. On the other hand, businesses can obtain 1 Gbps symmetric for all company activities. A quality coverage, ideal to build your cryptocurrency mining teams.

Similarly, you can carry out your trading activities without having to worry about bad hedging. In the case of mobile networks, how could it be otherwise, this is not out of place. The company that offers this service guarantees mobile coverage to 98% of the entire principality. You will receive the fastest and most stable connection in any corner of Andorra.

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22-07-2021

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