Working as a freelancer in Andorra: Requirements and Procedure
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:
- Valid passport: You must have a valid passport in order.
- Criminal record: It is necessary to present a criminal record certificate from the countries in which you have resided in the last five years.
- Medical certificate: A medical certificate confirming the applicant’s good health is required.
- Investment: A minimum investment in the country is required, which can be in real estate or in a business.
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.
Options to work as a freelancer in Andorra
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.
Qualified professional, the best option to work as a freelancer in Andorra
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.
Advantages
- It is not necessary to deposit 50,000 euros in the AFA as a requirement for those who apply for residence on their own.
- Tax procedures are usually simpler than in the case of a company.
- It is not necessary to declare a tax address to carry out the activity.
Requirements
- Passport or identity document.
- Be registered in the professional association, if it is a registered profession.
- The curriculum vitae.
- Andorran higher degree degree or one that is recognized in the territory of Andorra.
- The European Degree Supplement (SET) is a document that is attached to official university degrees issued by European universities. In the case of titles from other countries, it is necessary to present a legalized proof of grades. Both documents must be duly legalized to be recognized in Andorra.
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.
What are the main costs of being self-employed in Andorra?
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.
