When someone sees all youtubers Y other entrepreneurs go to live in Andorra, a question that may arise is if they are self-employed in Andorra or, in general, if there is such a figure in the country. Also, if so, how can this be done or what are the requirements to be able to do it, as well as what is the quota of freelancers who contribute. Is there a regime for freelance workers in Andorra or is it necessary to set up a company? Well, in this short article we have set out to answer it.
Being self-employed: liberal or titled professional
To be autonomous in Andorra is to be licensed professional. Some people also consider as self-employed in Andorra those who have the active residence and Andorran self-employment, but this category includes entrepreneurs of a company or people who carry out activities through a trade. In general, the question is: What moving to Andorra As a freelance or freelance? And the only answer is to be a qualified professional, since it is the only way to obtain a residence permit and settle in the country.
Previously, it was originally called liberal professional. This figure was quite different and with more restrictions, but in 2013 the Government approved a modification of the Law on the exercise of liberal professions and professional schools and associations (yes, it's called like that, and it was from 2008) in which as they say «replace the concept of liberal profession by that of a titled profession«.
In any case, this law modified many things but the main thing is the change of concept from liberal profession to profession titled, as we said. Under this new concept, Being self-employed in Andorra means being a qualified professional, and it is required:
- The application of knowledge and techniques of a branch or science of knowledge that are applicable and can be practiced as a professional in that branch.
- Possession of a official academic title Andorran higher education studies or recognized in Andorra equivalent to a university degree (professional training is not useful, at least for now).
Therefore, as we see, being autonomous in Andorra means, as the concept itself indicates, practice a regulated profession with at least university education for which there is capacity according to the competent institution, somewhat in the style of medieval craft guilds (modernized to the present). This greatly restricts the possibilities of practicing as a freelance.
A special category dependent on the Government
Thus, as we have said, to practice as a qualified professional you must have the skills to do something specific with a training certificate validated by a technical and collegiate committee. In addition, you can only exercise what the training title allows you as an economic activity. For example, a lawyer could homologate their qualifications and register in Andorra, thus being able to obtain a residence permit and self-employment. But he could only exercise as such, not being able to carry out the economic activity that he pleases.
As if that were not enough, an authorization from the Government is required for which there are certain quotas for each profession depending on the current year, the country's situation, the demand and the number of professionals already established in the country, which limits their issuance. The government reserves the right to change the number of seats available depending on the context.
Also the Government of Andorra reserves the right to accept or deny an authorization based on many factors which include the aforementioned quotas, the university or center that expels the degree, the country or the type, whether the degree corresponds to a complete profession or the pertinent master of specialization is required to practice, that all documentation can be provided Apostille of the Haia or other relevant certification, etc.
Procedure and requirements to be autonomous in Andorra
The aforementioned implies that the exercise of any type of profession cannot be guaranteed through any type of degree, and that the requirements depend on each specific case and are highly interpretable. Among others are, in addition to the necessary ones to obtain the active residence permit and self-employment:
- Have the homologated title.
- Curriculum vitae.
- European supplement to the diploma of the degree to be recognized, for degrees adapted to the European Higher Education Area or the certificate of grades apostilled by La Haia.
- Certificate of liability insurance.
- Specific documentation for each profession.
Basically and in a general way, To be a qualified professional you must do the following:
- Process the application for academic recognition of Higher Education Degrees
- Get the authorization to exercise the liberal profession by the Government, for which it is necessary among others to have the official academic title of higher education apostilled by Haia or via diplomacy.
- Join the respective professional association of Andorra, when applicable, and in the case of health professions, register in the Registry of Health Professionals.
- Depending on the specific profession, it may be required Specific conditionssuch as achieving prior practical training or obtaining a training accreditation.
- Get permission of active residence and self-employment, being a qualified professional.
This type of legal category usually works with architects, economists, lawyers, and certain engineers. In any case, in our office we can process everything for € 3,000-4,000 correctly including the advice obtained from experience, and helping them in whatever is necessary. However, we cannot guarantee success fully and with commitment, as it depends on the Government of Andorra itself.
We can also offer you a procedure consisting of first verifying whether or not the government accepts the application for the exercise of profession entitled for your case and in case of refusal, proceed to process the incorporation of a company. You can contact us to consult it and do it here.
The self-employed quota
What is the contribution to which these qualified professionals are subjected? Well then, as they are equally active residents and self-employed workers, they must contribute to the CASS (Andorran social security) exactly the same as managerial entrepreneurs of his own company: the 22% of the average monthly salary of the previous year to the current one, which is currently around around 450-500 € monthly. In either case, there are bonuses based on income and other factors. You can see the current quote here.
as we see during 2021, €457.88 was quoted by self-employed workers, entrepreneurs and freelancers (self-employed workers) because the average salary in 2020 was €2,081.26. Given that the average salary in 2021 was €2,158.40, the monthly contribution for 2022 is €474.85. Of course, being self-employed does not exempt you from taxes in Andorra. You must declare the IGI quarterly, the income tax annually and pay the municipal taxes and fees. Of course, they are not very extractive.
Advantages and disadvantages of being a qualified professional
Thus, we proceed to enumerate the advantages of being a qualified professional versus creating a company in Andorra:
|There is no deposit of €50,000 to the AFA (it is not a foreign investment)
|Restricted to regulated professions, and therefore to certain economic activities
|You do not have to create a company
|Higher education degree type university degree required
|Easier and cheaper maintenance
|The responsibility lies entirely with the natural person
|No need for registered office
|It is highly interpretable and dependent on the Government
This last disadvantage, that it is an interpretable category dependent on the Government and for which we cannot guarantee its success (except in certain cases), is obviously the most relevant.
Why establish yourself as a freelancer in Andorra in 2023
As we have indicated on numerous other pages in Andorra Insiders, by 2023 the titled profession is definitely the best way to get live in Andorra permanently. The reason is that the bonds required for the Andorran Financial Authority (AFA) for moving as a businessman (from €15,000 to €50,000) and passive residence (from €400,000 to €600,000), thus making both forms of residence more expensive.
However, from June 22, 2023 It will be required to be a professional with a B2 degree in Catalan due to its approval Law 42/2022 of December 1 of the digital economy, entrepreneurship and innovation that has increased the bonds required to the AFA. The reason that it begins to be applied in June is because there is a transitory provision according to which this requirement enters into force 6 months after the approval of the law, and it was approved on December 22, 2022.
In addition, many professional associations already request this degree in advance regardless of the current regulation, since they change their statutes and regulations to adjust it in advance to the application of the Law. Thus, the titled profession an exceptional way to establish yourself in Andorra, which allows you to do so with minimal costs and without the need to maintain any company.
But its exceptionality also applies to your requirements, and only people with a specific university academic profile and who have a minimum intermediate level of Catalan can apply this way.
Are youtubers autonomous?
As you may have guessed, no. Youtubers are not autonomous because they cannot, since there is no profession titled Youtuber. Not because they don't have a university or academic degree, that's irrelevant. Even if they did, they couldn't do their job as a youtuber being liberal professionals. Also, in fact, a lot of them wouldn't be interested either, since the legal structure that a company allows them is much better at all levels because they have a lot of income.
So what they do is start a company constituting a company in which they are shareholders and administrators of the same. Thus, they invoice through it and collect both salary returns and dividends and others from it, optimizing their taxation and taxes. Something that we also do in Andorra Insiders and for which we can help you contacting here.
In summary: the regime for qualified professionals, which is the equivalent of self-employed in Andorra, is restricted to specific qualified professions: lawyers, architects, nurses and doctors, economists, certain engineers, etc. In addition, they only allow the exercise of the economic activity for which the title gives capacity, unlike the flexibility of different social objects that a company allows.
It is, therefore, a regime advantageous but not for everyone, but only and as its name suggests, for qualified professionals who are the ones who have the privilege of operating as a freelancer in Andorra. It is also limited to certain quotas and its exercise depends on the interpretable approval of the government. Most people will need to choose another option to moving to Andorra. We hope that the article has been to your liking.