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Telecommuting, working from home in Andorra

As we also explained in our article on digital nomads and e-residency, although teleworking already existed before 2020 it was usually the exception. In general, it was about distance work for freelancers and usually for certain professional activities in the field of technology that could carry out their work through the internet.

However, the pandemic caused by the covid-19 coronavirus and the confinements imposed worldwide in all countries has caused the temporary or permanent closure of practically all non-essential sectors of the economy. These businesses, and also the essential ones, to a greater or lesser extent have had to adapt and adjust their business models to new circumstances, thus promoting teleworking.

Delivery of food at home, orders and appointments online through web pages or WhatsApp, videoconferencing applications such as Skype or Zoom and buying through Amazon or other similar services have been the norm in these lavish months. The activities that were redundant in the workplace have been eliminated or reduced and it has also been seen that this increases economic performance, is not reduced: savings in money and time costs for offices, travel, etc.

And what does this have to do with Andorra? Well, it's very simple: as Andorra is a perfect destination for digital entrepreneurs, many people who previously found it difficult to settle in the country due to their labor ties, after the rise of telecommuting and the transformation of your job telecommuting you can easily do it. The result is an increase in requests for residence in the country, even more after trend caused by Rubius.

In addition, the decrease in income caused by the crisis has made businessmen seek optimize in the best possible way your business and its legal and administrative structure, and certainly Andorra does it among others for its attractive tax system. In this article we will explain the advantages of teleworking in Andorra, as well as the types of remote work that can be exercised.

Why work remotely in Andorra

  • The first advantage is obviously its low taxes compared to Spain or France. With an income tax of a maximum of 10%, a flat tax of 10% and a VAT ranging from 0% to 4.5%, the benefits in this regard are unquestionable.
  • Good connection to internet. To be able to work from home obviously requires a fairly stable internet, since the working day is carried out using this technology. With fiber optics in all homes and a mobile network covering the 98% of the territory, this requirement is met in Andorra.
  • Natural and mountainous place, quiet and perfect for practicing sport. With more than 95% of the territory being forest and a UNESCO World Heritage natural park, enjoying the mountains and nature in its maximum splendor while optimizing economic performance is possible.
  • Close location. If you are Spanish or French, just a few hours away by car you will be in your area or country of origin, and you will be able to travel from one place to another without much discomfort.
  • Globalist culture and close to Spain, France and Portugal. Andorra has always been a land of emigrants, especially from these three neighboring countries. Therefore this has resulted in a very friendly culture and institutions for people from these countries. From spoken languages to one's own education system.
  • Community of entrepreneurs and digital workers. Andorra has been becoming for a decade a destination for those who can work remotely anywhere. Thus, since youtubers and other content creators even programmers and designers, traders and other types of businesses make a very good ecosystem of networking with people with the same type of teleworking.

Who can telework in Andorra?

  • All those professionals and businesses related to the information technology sector: programmers of all kinds, computer and software engineers, specialists in cybersecurity or Cloud Computing, experts in new technologies such as big data, artificial intelligence (AI), blockchain and other systems. of distributed consensus, data scientists, computer systems analysts and a great etcetera.
  • All those professionals and businesses of design and digital marketing: graphic designers (digital), digital marketing experts, advertising agencies and corporate identity, SEO specialists and entrepreneurs, marketing and advertising managers, illustration agencies or freelancer illustrators, specialists in smart advertising platforms like Google Ads, etc.
  • All those professionals in finance, economy and digital investment: traders, brokers, financial advisors and consultants, capital managers (own or third parties), economists and accountants, professional investors of any investment philosophy, real estate agents and investors, cryptotraders or investors long-term in cryptocurrencies, etc.
  • Youtubers, streamers and other influencers.
  • Some communication professionals and businesses: journalists and communication professionals who work digitally, social media managers, community managers, copywriters or creators of written content either for web pages or others, translators and experts in local culture, assistants in writing, writing, proofreading and editing of books, etc.
  • Similarly, some administration and customer service professionals and businesses, as long as they can work totally or mostly virtually, such as salespeople, virtual assistants, project managers, administrators and Customer Service representatives, IT and technology consultants, intermediaries and commission agents of certain sales, etc.
  • Other different professionals whose activity is carried out virtually or can work remotely: professors from remote universities or online platform courses, architects who can telecommute, lawyers who can contact their clients virtually, etc.

Dual residency conflict and precautions

As we said in our article on withholdings and the Double Taxation Agreement between Spain and Andorra, despite the aforementioned we must be cautious and strict with national and international legislation regarding tax residence. More specifically to criteria established by the OECD to consider a person, natural or legal, tax resident in a country and therefore obliged to pay taxes in the relevant state.

In summary, we recall that main criteria were:

  1. Stay in the Principality of Andorra for a minimum of 183 days a year.
  2. Have a home or permanent establishment at your disposal in the country.
  3. Consideration of the center of economic interests and the center of vital interests of the person.

Thus, we must always keep in mind that, to settle in Andorra, a real and effective transfer must be carried out, not simulated. The person must move completely to the country and disassociate himself from the previous one as far as possible to avoid conflicts of this type. It is in the case of not being able to meet the requirements and still wanting to pay taxes in Andorra while straddling it and another country that problems arise. You can read more about how to live in Andorra here.

Thus, although the covid pandemic and teleworking have made it possible to expand the range of profiles that can consider Andorra as a good destination to settle and live, You must first reflect on the possibility of doing so while complying with the requirements and without exposing yourself to legal risks.. In this sense, having flexible hours and being able to work from anywhere in the world is key to deciding it.

19 thoughts on “Teletrabajo, trabajar desde casa en Andorra”

  1. Hello, I am a foreigner living in Spain, teleworking as an employee in a Software and Finance company crunches me as if there was no tomorrow since I immigrated to Spain. I have 3 children educated in Spain and I am seriously considering emigrating to Andorra (real, not simulated). My employer is an American company but he wanted to get me on the payroll and hired a company that is dedicated to hiring residents from all over the world with local companies (remote.com), so I work for Remote SRL in Spain but I think if I move to Andorra they could rehire me there or something like that. Can you give me your expert opinion? Thank you!

    Reply
    • Hi Damian, thank you very much for commenting. I regret your situation, but given the case the only option would be to establish a company in Andorra and change the relationship with your company from labor to commercial. In this way, you would invoice your company for the services performed and enter them into your Andorran society. If not, there is no way to obtain the Andorran residence permit.

      Reply
  2. Hello, I am Spanish and I am currently working as a programmer in Spain, if I wanted to move to Andorra but continue to work remotely in Spain, what options do I have and how much would it cost? Thank you

    Reply
    • Hi Pedro, thanks for commenting.

      Well unfortunately I would not have any option. If you want to telework, you have to telework in Andorra, not in Spain. You cannot reside in Spain and at the same time enjoy the advantages that Andorra offers to tax residents.

      Reply
  3. Good morning dear,

    I am Spanish and I work in the financial sector in Spain. With the arrival of telecommuting, I consider moving to Andorra, ask HR to change my tax residence so that I have 0 personal income tax withheld and pay it in Andorra.
    I understand that I could telework and pay taxes in Andorra (an employee for a Spanish company), paying taxes in Andorra, without major problems. Is that so?

    Thank you very much in advance.

    All the best,

    Reply
    • Hello Mauricio, thanks for commenting.

      Obviously not, it doesn't work like that. You cannot be an employee in Spain and reside in Andorra in any way. Not only could he not obtain a residence permit, but even if he did, he could not be a tax resident because he clearly has the center of economic interests in Spain.

      Reply
      • Hello good

        I do not have it very clearly. One thing is that I didn't get a residence permit under those conditions, which I think would be complicated.

        But let's imagine that if you have the Andorran residence permit. Why couldn't I work for a Spanish company and pay taxes in Andorra? As I see it, in that case, Spain and Andorra would dispute the fiscal residence, and having resided more than 183 days in Andorra, the question of the center of economic interests would never arise.

        Reply
        • Hello Rosa, indeed I say that it is not possible because there are different complications. In the first place, as you very well say, you cannot get a residence permit, so you would have to get it in another way. How? Well, basically working on your own or as an employee in Andorra, which already invalidates the fact of being able to work for a Spanish company because the permit would not be renewed if you did. You could also have a residence permit for family reunification, but for that you must be a relative of someone who is an Andorran resident.

          Second, what about Social Security and personal income tax? Suppose you get a residence permit. Your company, which is located in Spain and does not have a subsidiary in Andorra, must pay its social security there and its respective IRPF withholdings on salary there. Instead, you will live in Andorra, and you will have your tax and social security obligations in Andorra. This is already a bigger problem.

          Reply
          • Hello Jose

            Precisely, those are the answers that those of us who work for others seek.
            Does having a company in Andorra, or working in Andorra, invalidate the work permit of a person with Spanish nationality in Spain?
            Social Security and personal income tax would be amounts that could be claimed later?
            The feeling that it gives is that it is not that it cannot be done, but that it is an issue that is not moving or that it is not very clear where it could end

  4. Good Andorra Insiders. I am a bit confused with the answers you are offering to the rest of the users who comment on the post. Excuse me for asking again, but then if I live in Andorra and I am working for a company in another country (for example, a programmer who lives in Andorra and who before moving there lived in Zaragoza for saying something) should I pay taxes in Spain in place of Andorra?

    Reply
    • Hi Victor, thank you very much for commenting.

      Indeed, with the comment answered to Pedro, we thought that he wanted to continue residing in Spain. If the activity is remote and you are willing to actually reside in Andorra, there are possibilities of establishing yourself in the country. The most obvious, safe, standardizable and frequent is opening an Andorran company and practicing through it. Thus, if a person works for someone else, they must change their relationship with the company, going from having an employment relationship to a commercial one in which the contracting company hires their services externally.

      We are sorry to have expressed ourselves wrong. All the best.

      Reply
  5. Hello, thanks for the information. Although I have doubts about what you comment in the article, and then the answers. On the one hand, it seems that in it you indicate that there is a possibility of working (telecommuting) in other countries (for example Spain) and residing (actually moving) in Andorra. But in the comments about it you clarify that this is not the case.

    Can you then explain how this advantage of "teleworking in Andorra" could be applied in a real case for someone who works for someone else?

    Reply
    • Hello Beatriz, thank you very much for your comment. With some exceptions, obviously you cannot work for a company in Spain as an employee and live in Andorra, for many different reasons, unless the hiring company has its headquarters in Andorra. What can be done and the model to apply is that of a subcontracted entrepreneur or freelancer in case of being able to access to practice through a qualified profession. It basically consists of changing the employment relationship with the company for which you are working for a commercial relationship, and billing the services from Andorra as an entrepreneur or qualified professional. When we say telecommuting we mean working remotely from Andorra, but not as an employee in Spain because that is obviously impossible.

      Reply
  6. Hello, good afternoon,
    I am a Spanish software programmer and I have come to live in Andorra with an Andorran company and I am processing my residency. Currently I also work for another company that has hired me as a teleworker in Spain but this company tells me that it can change the hiring to Andorra.
    Would it be possible if I already have a residence and an Andorran contract, that they hire me from a Spanish company in Andorra without harming me in any way?
    Or would you have to open a company yes or yes to continue working with that company?
    Thank you very much in advance.
    All the best.

    Reply
    • Hi Javier, thank you very much for your comment. There are several solutions for your case, but we would have to analyze everything in greater depth to see the best way to proceed. In any case, if you are going to work for several clients, it is best to always practice on your own and not through an employment contract.

      Reply
  7. Hello!
    I am a qualified professional in Andorra and a tax resident here but with Spanish nationality.
    A Spanish company wants me to telecommute as an employee with them, but the income they would make me would be higher than what I earn as a qualified professional here.
    I understand that I pay taxes in Andorra because although my center of economic interests would be in Spain, I live here all year round. This would take us to the CDI and would tie the tie in favor of Andorra for only having a permanent home at my disposal in Andorra. Is that so? Or am I very wrong? Thank you!!

    Reply
    • Hi Rebecca, thank you very much for commenting. No, if you spend the whole year in Andorra directly, there is no problem or conflict of tax residence. I don't see the problem in your case of telecommuting so much there as in the fact of working for someone else, which I don't know in what sense I meant it. If I meant it in a literal sense, you cannot be a self-employed worker in Andorr and at the same time an employee for a Spanish company. On the other hand, being hired by the Spanish company is problematic for various reasons. The best thing, and what I suggest, is to telework on your own in Andorra and have a commercial relationship with your company, in such a way that you invoice them for their services and they pay you or enter the invoiced amount.

      Reply
  8. good!!
    I have read the entire post and absolutely all the comments but there are some doubts that are not clear to me... in advance, sorry for insisting on the same topic.

    Like everyone who reads this I am evaluating a change to Andorra.

    But the issue of work is not clear to me, if I declare myself self-employed in Andorra and work as a freelance from Andorra, that is, I live in Andorra (although I do the 90% of projects for Spanish companies), yes, I could pay taxes in Andorra, right? Since the "headquarters" would be that I am self-employed in Andorra or do I need to create an SL? Or on the contrary, when getting most of the income from invoicing Spanish companies, should I invoice in Spain?

    I think I've been clear to see if you give me a hand with my doubts, thanks!

    Reply
    • Hi William, thank you very much for commenting.

      In the first place, there is no “self-employed” figure in Andorra, but rather that of a self-employed worker. On the other hand, to reside effectively in Andorra, you must obtain an Andorran residence permit, and the ways to obtain it are very restricted, and the easiest way to do so is to create an SL and establish yourself as an entrepreneur. Finally, to have tax residence in Andorra and pay taxes on all your worldwide income as an Andorran tax resident, you must meet a series of descending requirements set by the OECD and, the first of them, is demonstrable permanence for more than 183 days in the country. . You can learn more in this video from our Founder and Managing Partner Marc Urgell: https://www.youtube.com/watch?v=t1hPKf1NV9Q.

      Reply

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Telecommuting, working from home in Andorra

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Andorra Insiders is an information platform about Andorra managed by Abast Global, an Andorran professional consultancy firm for legal, tax and accounting services specializing in the establishment of people and businesses in the Principality of Andorra. More information here.

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