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Today, we can see numerous content creators settling in the Principality. This is the case of YouTubers and other entrepreneurs; what regime are they in? Are they self-employed in Andorra? This article tells you everything you need to know about it.
To be self-employed in Andorra means to be a qualified professional, but it can also be considered as persons who have an active residence in the Principality and are self-employed. This includes, for example, entrepreneurs who belong to a company and even traders. However, to be self-employed in Andorra, as such, it is necessary to be a qualified professional. This is the only way to obtain a permit and establish yourself in the country.
What do you need to be self-employed in Andorra? We tell you that it is essential to meet a series of requirements. From MCA Assessors, we invite you to contact us to help you complete this procedure. The conditions that you must fulfill are:
To be self-employed in Andorra, it is essential not only to have the title but also to exercise the activity that the title confers. For example, a lawyer can homologate his studies and register in Andorra, but his economic activity can only be as a lawyer, unable to perform other work. In addition, we tell you that authorization from the Government is necessary.
In this regard, we tell you that the Principality has specific quotas for each profession that are established according to the current year, as well as the situation of the country, the demand, and the number of professionals in the country. On the other hand, the Andorran government reserves the right to accept or deny authorization considering many factors such as quotas, the university issuing the degree, and even if a master’s degree of specialization is required.
We have already mentioned the general conditions to become self-employed in Andorra, but it is essential to mention the specific requirements:
To be self-employed in Andorra, in addition to providing the corresponding documentation, it is essential to follow a specific process. The first step is to apply for the academic recognition of Higher Education Degrees. In addition, the authorization to practice the profession must be obtained. The Government must issue this document.
It is also necessary to be registered where applicable. As far as health qualifications are concerned, it is then necessary to register in the Register of Health Professionals. Remember that, depending on the qualification to be approved, it may be necessary to have previous practical training or to have obtained accreditation.
As in Spain, the self-employed in Andorra must also pay a fee. Remember that the self-employed are qualified professionals in exercising an economic activity and consequently acquire the active residence. To be fully self-employed in the Principality, one must contribute to the CASS or Andorran social security. And what is the contribution? You have to pay the same as the employers who are administrators of a company: 22% of the average monthly salary of the previous year; the amount is currently around 450-500 euros per month. We tell you that there are bonuses that depend on each person’s income.
On the other hand, being self-employed in Andorra means paying taxes. In this case, you will have to pay the IGI, which is the Andorran VAT, on a quarterly basis. You must also pay the annual IRFP and other taxes and municipal fees.
If you are still not sure about being self-employed in Andorra, we will tell you about the advantages. To begin with, the self-employed is not an investor, so depositing 50,000 euros with the AFA or Andorran Financial Authority is unnecessary. In this sense, it is also unnecessary to create a company or society; moreover, being self-employed in Andorra is cheaper and easier than incorporating a company. Finally, it is not necessary to have a registered office.
Why is being self-employed in Andorra a better option than incorporating a company? As we have already mentioned, incorporating a company requires an amount that has recently increased. To obtain the residence as an investor, it is necessary to pay a deposit to the AFA, which varies between 15,000 and 50,000 euros; on the other hand, the passive residence requires a deposit of 400,000 to 600,000 euros.
One of the new regulations to move to Andorra is to have a B2 qualification in Catalan. This measure has been in force since the approval of Law 42/2022 on December 1 on digital economy, entrepreneurship, and innovation. Among other measures, this regulation requires the qualification in Catalan since June 22, 2023, and applies to new residence applications and in case of renewals.
It should be noted that many professional associations already require a degree in Catalan to adjust in advance to the application of the new Law.