Freelancing in Andorra: compte propi registration, CASS social security, and IRPF up to 10%
An Andorra freelancer registers as self-employed (compte propi) and enrols with the CASS social security fund. Personal income tax (IRPF) is capped at 10%, with roughly the first EUR 24,000 of income effectively tax-free, and the general IGI (Andorra's VAT) rate is just 4.5% — the lowest headline indirect-tax rate in Europe.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Andorra is one of Europe's lowest-tax jurisdictions, but "low tax" is not "no tax" — going freelance here still means registering as self-employed, joining the social-security fund, and charging Andorra's own VAT.
Registering as compte propi
To work for yourself in Andorra you register as self-employed — compte propi — and, if you are not Andorran, you generally need an active residence and work authorisation that permits the economic activity first. You register the activity with the government, obtain a tax number, and enrol with the CASS (Caixa Andorrana de Seguretat Social), the fund that covers healthcare and pensions.
CASS social security
Self-employed workers contribute to CASS at a general rate of 22%, applied to a reference base that the government fixes each year by decree (rather than to your raw profit). Reduced contribution bases are available — for example for new or lower-turnover activities and for younger entrepreneurs — so the effective cost can be lower than the headline rate suggests in your first years.
IRPF and IGI
IRPF (Impost sobre la Renda de les Persones Físiques) taxes freelance profit on a low scale topping out at 10%. A general allowance means roughly the first EUR 24,000 is effectively taxed at 0%, a middle band applies around 5%, and 10% hits income above roughly EUR 40,000 — so most modest freelancers pay very little income tax. Separately, IGI (Impost General Indirecte) is Andorra's VAT: a general rate of 4.5%, the lowest standard indirect-tax rate in Europe, with reduced rates of 0%, 1% and 2.5% and a higher 9.5% band for banking and financial services. Carrying on an economic activity means registering for IGI and charging it on invoices.
General information about freelancing in Andorra, current as of the review date above, and not tax advice. Andorra is a small jurisdiction and figures change — confirm current rates and bases with the tax authority (impostos.ad), CASS (cass.ad) or a qualified Andorran adviser.
Frequently asked questions
What is the IGI (VAT) rate in Andorra, and do freelancers register?
IGI (Impost General Indirecte) is Andorra's value-added tax, with a general rate of 4.5% — the lowest standard indirect-tax rate in Europe. Reduced rates of 0%, 1%, 2.5% and a higher 9.5% (banking and financial services) also apply. Anyone carrying on an economic activity in Andorra registers for IGI and charges it on invoices; unlike EU VAT there is no high exemption threshold, so registration follows from the activity itself.
How much income tax does an Andorra freelancer pay?
IRPF (personal income tax) is capped at a top rate of 10%. In practice a general allowance means roughly the first EUR 24,000 of income is effectively taxed at 0%, then a middle band around 5%, and 10% on income above roughly EUR 40,000. On top of tax, self-employed people pay CASS social-security contributions at a general rate of 22% of a reference base set annually by decree.