Learning how to start working as a self-employed professional in Andorra involves more than simply issuing invoices. You must choose the right legal structure, obtain any required immigration authorisation, register your activity, arrange social security with CASS and understand your tax obligations. The process can vary depending on whether you are already resident, an Andorran national or moving to the country from abroad.
Choose between self-employment and a company
Many professionals begin as an individual working on their own account, commonly referred to as working per compte propi. This can suit consultants, designers, translators, online professionals, tradespeople and other service providers with limited operating costs. You are personally responsible for the activity and normally manage your own invoicing, accounting and tax declarations.
Other professionals create an Andorran company, often an SL, particularly when they need partners, employees, investment, commercial premises or clearer separation between business and personal finances. A company involves additional administration, accounting and corporate obligations, so compare both options with an Andorran gestor or accountant before registering.
Check your residency and work authorisation
If you are not already entitled to work in Andorra, clarify immigration requirements before committing to a lease or business expenses. An active residency permit is designed for people who live in Andorra and carry out professional or commercial activity there. It is different from passive residency, which is intended for people who reside in the country without working locally.
The application and supporting documents are handled through the relevant departments of the Govern d’Andorra. Requirements can include proof of accommodation, identity documents, a criminal-record certificate, health and financial documentation, and evidence of your proposed professional activity. Rules and minimum requirements may change, so confirm the current checklist with the immigration service or an authorised professional.
Register the professional activity
Once your route is clear, define exactly what you will do, where you will work and which activity classification applies. You may need to register with the appropriate department of the Govern d’Andorra and complete commercial or professional formalities with the comú of the parish where the activity is based. If you use an office, studio, shop or workshop, check whether the premises require an opening authorisation, technical certificate or other municipal approval.
The parish matters in practical terms. A business in Andorra la Vella may deal with different local procedures from one in Escaldes-Engordany, Encamp, La Massana, Ordino, Canillo or Sant Julià de Lòria. Ask the relevant comú whether your activity is compatible with the premises and whether local fees or documents apply.
Register with CASS
Self-employed workers generally need to register with CASS, Andorra’s social security system, and pay the applicable contribution. CASS covers areas such as healthcare and pensions, subject to the rules of the system. Contributions are a significant recurring cost, so include them in your initial budget rather than treating them as an occasional expense.
Before starting, ask CASS how your contribution is calculated, when payments are due and which documents are required. If you later employ staff, you will also need to understand employer registration, payroll and employee contributions.
Understand IGI and income tax
Andorra’s indirect tax is IGI, the Impost General Indirecte. Whether you must charge IGI depends on your activity, turnover and the applicable registration and filing rules. Some services may receive different treatment, and cross-border work can create additional VAT or tax questions in the client’s country. Do not assume that an online business is automatically outside Andorran obligations.
As an individual professional, you may also have personal income tax obligations. Keep organised records of invoices, expenses, bank movements, contracts and proof of payments from the first day. A local accountant can help you establish the correct invoicing format, deductible expenses, filing calendar and treatment of international clients.
Set up the practical essentials
- Open a business-appropriate bank account and separate personal and professional spending.
- Use written contracts covering prices, deadlines, ownership of work, confidentiality and late payment.
- Arrange suitable professional liability insurance when your sector or clients require it.
- Choose reliable accounting and invoicing software, preferably with IGI information and sequential invoice records.
- Set up internet and mobile services with Andorra Telecom and compare electricity arrangements with FEDA if you rent a workspace.
- Check whether your profession requires a qualification, licence, regulated-body registration or special authorisation.
Budget before you begin
Prepare a realistic monthly forecast including CASS, accounting, banking, rent, utilities, insurance, software, transport and taxes. If you are moving to Andorra, also budget for housing, deposits and the time required to obtain documents. Keep an emergency reserve because professional income can fluctuate, especially during the first months.
Before submitting applications, confirm each step with CASS, the Govern d’Andorra, your parish comú and a qualified local adviser. Once your activity is ready, browse local businesses in the directory to find accountants, legal advisers, banks, coworking spaces and other services that can help you start working in Andorra.
