As we know that the process of registering as a freelancer generates doubts and can be quite cumbersome, today, in our blog, we explain everything you need to know to work as a freelancer in Andorra.
In 2020 Andorra had more than 7,300 self-employed workers. A figure that undoubtedly demonstrates the importance of the self-employed or freelance collective within the Andorran labor scene. Obviously, in order to be self-employed in Andorra, a series of requirements must be met and different procedures must be carried out to complete the affiliation and registration with the CASS. What type of worker is eligible? What is the contribution base? How can one obtain self-employed status in Andorra…?
As we know that the process of registering as self-employed generates doubts and can be quite heavy, today, in our blogwe explain everything you need to know to become self-employed in Andorra.
Self-employed and freelancers, similar but not alike
If we analyze the different ways that currently exist in Andorra to obtain self-employed status, we can identify two ways, which are similar but not the same.
- Self-employed: by means of the creation of a company with commercial activitySelf-employed: by acting as the administrator of the company, being part of the board of directors or holding a managerial position within the company.
- Liberal Professional with a Qualified Profession: this option is reserved only for specific professions that are duly accredited.
- Individuals who carry out their activity without setting up a company (SL, SA, SLU…): in these cases, the self-employed will have to reserve a trade name, open a business under the trade name (previously validated) and finally affiliate and register as self-employed with CASS.
What is the main difference between a self-employed person and a freelancer?
By way of example, some professions that could be included in the category of liberal professionals are liberal professionals would be lawyers, architects, doctors, technicians and, in general, people who work independently as consultants and who base the development of their activity on their intellect.
On the contrary, all those professions that require the essential use of one or more manual skills, such as a construction worker or a livestock farmer, cannot be considered liberal professionals.
What are the requirements to apply for a self-employment permit?
Permanently reside in Andorra for a minimum of 183 days per year. ?
Contribute to the CASS within the group of self-employed workers by choosing one of the eight different contribution brackets according to the turnover and net income figures. ?
To create a company or to have participations superior to 20% of an Andorran company and additionally to hold a position in the Board of Directors of the same. ?
To be a freelancer. ?
What is the procedure to become affiliated and register as self-employed?
As detailed on the CASS websiteall persons who want to start a self-employed activity and are not already affiliated with the self-employed are obliged to apply for affiliation.
They must be affiliated within the first 3 days of the beginning of the activity, except in the case of incorporation of new companies in which the contribution obligation of the administrator begins 30 calendar days after the registration in the Register of Companies. At the same time, the following documentation must be submitted to the Administrative Control area.
Tax Registration Number (NRT)
Registry of Commerce and Industry
Register of Liberal Professionals
Register of Agricultural Holdings
Registration of Mercantile Companies
Bylaws (if applicable)
What are the contribution bases for self-employed workers?
The monthly affiliation fee for self-employed workers is calculated on the basis of the economic figures of their business and with the new contribution bases provided for by Law 9/2019 of the CASS, of 25%, 50%, 62.5%, 75%, 100%, 125% and 137.5% of the average monthly salary of the previous year (€2,158, 40/month). The following criteria are also taken into account:
- The net income they obtain to carry out their business or professional activity.
- Turnover linked to economic activity related to professional and business services or commercial activities.
The data for the year 2020 showed that 65% of self-employed workers maintained their base contribution, which this year is 474.85 Euros, adding the 215.84 Euros corresponding to 10% of the general branch and the 259.01 corresponding to 12% of the retirement branch. In any case, the self-employed system has eight different contribution brackets according to the turnover and net income of each self-employed worker (see attached table).
| % of contribution base | Global contribution basis | Quota |
|---|---|---|
| 25% | 539,6 € | 118,71€ |
| 50% | 1079,2 € | 254,73 € |
| 62,5% | 1349 € | 296,78€ |
| 75% | 1.618,8 € | 356,14€ |
| 100 % | 2.158,40 € | 474,85€ |
| 125% | 2.698 € | 593,56€ |
| 137% | 2.957 € | 652,92€ |
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