To work as a freelancer in Andorra, it is essential to meet several requirements and follow an established procedure. Before starting work, self-employed workers must obtain residence and a work authorization in the country.
The requirements to obtain tax residence and work authorization include, but are not limited to, the following:
Once you have obtained residency and work authorization, the next step is to register as self-employed with the Andorra Social Security (CASS). This registration is mandatory for all self-employed workers and allows access to Social Security benefits.
There are various ways to work as a freelancer in Andorra, and the choice depends largely on the personal circumstances and needs of each individual.
One option is to establish a sole proprietorship . This option may be attractive to those looking to maintain greater control over their business activities, and who want greater flexibility in managing their income and expenses.
Another option is to work as a freelancer or independent contractor . This option may be ideal for professionals who offer specific services, and who do not need a business structure to operate.
It is also possible to work as a freelancer through a public limited company . Although this type of structure may imply greater administrative complexity, it may offer advantages in terms of limited liability and tax optimization.
Finally, through a commercial activity with a titled profession . This option is reserved only for specific professions that must be duly accredited. Being one of the most attractive modalities for its advantages.
Moving to Andorra as a qualified professional is one of the options with the best conditions to do so as a freelancer. This option allows the applicant to avoid the deposit of €50,000 in the AFA , as long as the requested requirements are met.
In relation to the contribution to social security in Andorra, known as CASS, the fee is uniform for all self-employed workers, regardless of their type of activity. When carrying out a commercial activity in the country, self-employed people are required to make a monthly contribution that covers both health care and retirement.
Tax rates are significantly low compared to other countries, it is important to note that self-employed people in Andorra are subject to various taxes. For example, Personal Income Tax (IRPF) has a maximum rate of 10%, with a minimum exempt rate of 24,000 euros and a 50% bonus for income between 24,000 and 40,000 euros.
The self-employed fee, which is paid monthly. This is calculated annually, based on the average salary in Andorra of the previous year. For this year the cost of this fee is €533.87.
Corporate Tax is applicable to self-employed people who operate through a company and has a general rate of 10%. However, reductions are applied for new businesses, special tax regimes and exemptions in order to avoid double taxation.
Finally, the General Indirect Tax (IGI), equivalent to VAT in other countries, has a general rate of 4.5%, although it also has rates of 0%, 1%, 2.5% and 9.5% depending on the product or service taxed.
The time may vary depending on several factors, but in general, you can expect the process to take between 3 and 6 months.
Consulting for the self-employed in Andorra usually costs between €100 and €200 per month.
Yes, but if you spend more than 183 days in Spain, you will have to inform the Spanish tax office of your income.
One of the most prominent benefits of working as a freelancer in Andorra is the favorable tax regime, which offers low tax rates compared to other countries. Furthermore, Andorra offers a high quality of life, with an impressive natural environment and excellent services and infrastructure.
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