How to Register as a Self-employed individual (Autónomo) in Andorra

Becoming a freelancer in Andorra (locally known as an autónomo) is an attractive option for many entrepreneurs, professionals, and digital nomads. The Andorran tax system is known for being favorable, with low income taxes, no wealth taxes, and a business-friendly environment. However, freelancers must still comply with certain registration and tax obligations.

Steps to Register as Self-employed (Autónomo) in Andorra

1. Obtain Residency Status:

• • Residency: To be considered a freelancer in Andorra, you need to be a tax resident. This typically means spending at least 183 days per year in the country.
  • Visa or Residency Permit: Depending on your nationality, you may need to apply for a residency visa, either active (for working) or passive (for retirees or those with sufficient income).

2. Register with the Andorran Social Security System (CASS):

• As a freelancer, you must register with the Caixa Andorrana de la Seguretat Social (CASS) to pay for healthcare and pension contributions.
• The rate for freelancers is typically 22.5% of your net income. This includes healthcare and pension contributions.

3. Register with the Andorran Tax Authorities:

• You will need to register your business activity with Andorran Tax Agency to obtain a Tax Identification Number (NRT).
• VAT Registration: If your annual turnover exceeds €40,000, you must register for VAT (IVA in Andorra) at a rate of 4.5%.

4. Open a Business Bank Account:

• You will need to open a corporate bank account in Andorra, separate from your personal bank account, to manage your business finances and payments.

5. Choose Your Taxation Regime:

• Simplified Regime: For individuals with an annual income of up to €40,000.
• General Regime: For individuals whose income exceeds €40,000.

Taxes Self-employed individuals Must Pay in Andorra

As a freelancer in Andorra, you will need to comply with several tax obligations, including:

• Income Tax (IRPF): personal income tax on your earnings. Progressive rates ranging from 0% to 10%.
• Social Security (CASS): contributions to the social security system, covering healthcare and pensions. 22.5% of net income.
• Value-Added Tax (VAT): VAT is charged on goods and services. If your turnover exceeds €40,000, you must register. The standard rate is 4.5%.
• Corporate Tax (If applicable): if you opt to incorporate your freelance business as a company, you will pay corporate tax at a flat rate of 10%.

Taxes Self-employed Individuals Must Pay in Andorra

Tax Type	Rate	Details
Personal Income Tax (IRPF)	0% – 10%	Progressive tax rate with a maximum of 10%.
Social Security (CASS)	22%	Covers healthcare and pension contributions.
Value-Added Tax (VAT/IGI)	4.5%	Applies if annual revenue exceeds €40,000.
Corporate Tax (If applicable)	10%	Applies if you incorporate your freelance business as a company.

How Axior Global Can Help with Freelancer Registration and Tax Advisement

Navigating the registration process and tax obligations in Andorra can be complex, especially for those unfamiliar with the country’s legal system. Here’s how Axior Global can help:

• Freelancer Registration: Axior Global can assist you with setting up as an autónomo in Andorra, ensuring you complete all the necessary registrations with CASS, AGIA, and local banks.
• Tax Planning and Optimization: Axior Global can help you determine the best tax regime for your freelance business, ensuring that you are registered correctly for income tax, social security contributions, and VAT.
• Social Security Contributions: Understanding how CASS contributions work and ensuring you are paying the correct amount is crucial. Axior Global can guide you through the social security system, helping you optimize contributions to maximize pension and healthcare benefits.
• VAT Compliance: If you expect your income to exceed the €40,000 VAT threshold, Axior Global can assist you in registering for VAT, submitting your periodic returns, and ensuring you remain compliant with Andorran VAT regulations.
• Ongoing Tax Filing: Axior Global can handle your annual tax filings, ensuring that your income tax and social security filings are accurate and submitted on time.

Conclusion

Becoming a freelancer or self-employed in Andorra is a straightforward process with low tax rates and favorable business conditions. By following the necessary steps for residency, social security registration, and tax registration, freelancers can take advantage of Andorra’s tax-friendly environment. With the support of Axior Global, you can ensure that your freelance business is properly set up and optimized for tax savings. Our experts provide comprehensive tax advisement and registration services, so you can focus on growing your business with peace of mind, knowing that your compliance is in expert hands.