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Labor Laws in Andorra

  • Annual Leave: 30 days
  • Maternity Leave: 16 weeks
  • Public Holidays: 13
  • Workweek: 40 hours per week.
  • Overtime: Must not exceed 15 hours per week.

Income Tax in Andorra

Residents are subject to personal income tax on their worldwide profits and capital gains. Nonresident individuals are taxed only on Andorra-source income.

Residents and non-residents are taxed at progressive income tax rates ranging from 0% to 10%.

Value Added Tax (VAT) in Andorra

The standard VAT rate is 4.5%.

Social Security in Andorra

Andorra has a social insurance and social system. Membership of the Andorran Social Security (CASS) is mandatory for all employees, the assimilated, and persons performing an activity independently. It covers both illness and retirement.

Employee

  • 6.5% of gross wages paid by the employee.
  • 15.5% paid by the employer.

Self-Employed Person

  • 22% average wage for employed persons.
  • Reductions up to 75% (depending on conditions.)

Work Visas Andorra

Here is a selection of criteria required for work visas in Andorra, download our guide for an extensive breakdown.

All foreigners wishing to work in Andorra need work permits. These are obtained by employers – whether Andorran individuals or companies – on behalf of employees. 

Self-employment is not allowed until after 10 years of residence or trade in Andorra.

There are two types of visas in Andorra:

  • Passive Residency
  • Active Residency

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