Located between Spain and France, the Principality of Andorra is a small country with no shortage of assets, especially when it comes to tourism. Andorra owes its appeal to its mild year-round climate and its dynamic local commerce. Moreover, many professionals are attracted by Andorra’s quality of life, particularly its security, lower cost of living than neighboring countries, and low level of unemployment, and decide to move there to work on a wage portage basis.
What makes the Principality of Andorra such a good place to work?
With a total area of 482 km², Andorra shares its borders with Spain and France. Although this small Catalan-speaking country is not a member of the EU, the euro has been its official currency since 2013.
As mentioned above, Andorra’s economy is based mainly on tourism, but agriculture also plays an important role. The service industry is also a major source of employment in the Principality, including trade, real estate, rental and business services.
Professionals who plan to move to Andorra and work there independently can take advantage of tax breaks. The tax rate on employment income and corporate income is 10%, and VAT is 4.5%.
Added to this is a healthcare system recognized as the best in the world by a leading medical journal. The government covers 75% of healthcare costs (consultations, medical expenses, etc.) and 90% of surgical costs. People in financial difficulty also benefit from full coverage of their healthcare expenses.
The quality of life in Andorra is also an undeniable advantage. The country has managed to preserve its natural environment, making it one of the European countries with the lowest levels of air pollution. It is also one of the safest countries in the world in which to live and has a very low crime rate.
Property prices and rents are affordable compared with market rates in France or Spain, especially in the « parishes » furthest from the capital.
The same applies to the cost of living:
- The water supply is free,
- Electricity prices are among the lowest in Europe,
- The average price of the shopping basket is very attractive.
How can I work on a wage portage basis in Andorra?
To work as an independent professional in Andorra, you need to set up a company. The administrative procedures are relatively simple, and you can have your business up and running within four weeks (after obtaining foreign investor authorization).
In addition to corporate income tax (10%), entrepreneurs are also subject to social security charges (22%). However, there are no taxes on dividends.
To obtain Andorran resident status, you must own at least 21% of the company’s shares.
Another attractive option is working on a wage portage basis in Andorra. In this case, professionals can sign a portage agreement and an employment contract with a wage portage company established in France or Andorra.
This form of employment enables professionals to remain independent and to benefit from the social advantages of salaried employment, as well as to get personalized support in dealing with administrative tasks and the host country’s tax regulations.