Becoming Self-Employed in Andorra: Requirements, Taxes, Social Security and Setup

Reading time: 10–12 minutes

Many people come to Andorra assuming that becoming self-employed follows a process similar to that of Spain, France or other European countries. However, the Andorran system has one fundamental difference: carrying out an economic activity does not depend solely on the individual, but also on the commercial licence that legally authorises the activity.

As a result, before considering taxation or social security contributions, it is essential to understand the legal framework that allows an individual to carry out a business activity in the Principality of Andorra.

What does it mean to be self-employed in Andorra?

Being self-employed in Andorra means being able to carry out an economic activity on your own account and issue invoices in your own name, without necessarily operating through a company.

However, unlike many other countries, registering with the Caixa Andorrana de Seguretat Social (CASS) is not enough. In order to carry out an economic activity legally, you must first meet a fundamental requirement: obtaining the legal authorisation that allows you to carry out that activity. In Andorra, this authorisation is the commercial licence.

The commercial licence: the key requirement

As explained below, anyone wishing to carry out an economic activity and issue invoices in Andorra must hold a commercial licence. This may be held directly (a personal commercial licence) or indirectly through a company that already holds the appropriate commercial licence.

Without this licence, it is not legally possible to conduct a business activity in Andorra.

If you would like to learn more about the procedure for obtaining a commercial licence, we recommend reading our dedicated article on this topic.

The two ways to operate as a self-employed professional

In Andorra, there are essentially two ways to carry out an economic activity on your own account.

1. Through a company

The first option is to conduct your business through a commercial company.

In this case, the company itself holds the commercial licence and is therefore the entity authorised to issue invoices to clients. The company director manages and represents the business but does not issue invoices in their own personal name.

Regarding CASS obligations, the director's situation depends on the specific circumstances of each case. In certain situations, particularly where the individual is already contributing as an employee and receives no remuneration for acting as director, there may be no obligation to contribute simultaneously as a self-employed person.

If you are considering this option, we also recommend reading our articles on setting up a company in Andorra, the role of company directors, and, where applicable, the foreign investment authorisation process.

2. Through a personal commercial licence

It is also possible to carry out an economic activity without incorporating a company by obtaining a personal commercial licence.

Under this model, the individual personally holds the commercial licence and issues invoices directly to clients.

However, it should be noted that individuals choosing this option are generally required to contribute to CASS as self-employed workers, even if they also contribute as employees. This is because they have the legal capacity to carry out an economic activity and issue invoices in their own name, meaning that both contribution regimes may coexist.

Regulated professions and licensed activities

It is also important to note that certain professional activities require membership of the relevant professional association in the Principality of Andorra.

This applies to a number of regulated professions, which are subject to additional legal requirements governing access to and practice of the profession, alongside the general administrative obligations.

Who can obtain a personal commercial licence?

One of the most common questions is whether anyone can obtain a personal commercial licence in Andorra. The answer is no.

Only individuals holding an active residence permit, together with Andorran nationals, may obtain a commercial licence in their own name. Consequently, this option is not available to non-residents or holders of passive residence permits.

Therefore, a non-resident cannot simply register as a self-employed professional in Andorra.

If you would like to learn which residence permits allow you to carry out a self-employed activity and the conditions that apply, we recommend reading our articles on self-employed residence permits and the different types of residence permits in Andorra.

CASS contributions

Once the activity has commenced, carrying out a self-employed activity generally entails the obligation to register with the Caixa Andorrana de Seguretat Social (CASS) and pay the corresponding social security contributions.

However, the amount payable is not always the same. It depends on several factors, including whether remuneration is received, how the activity is carried out, the individual's age, whether they are also employed by another company, and whether they have previously carried out a self-employed activity.

It is important to remember that these contributions do more than simply fulfil a legal obligation. They also determine access to healthcare benefits and the Andorran social security system.

For more detailed information, we recommend reading our articles on CASS contributions for self-employed workers and the general operation of the CASS system in Andorra.

What taxes does a self-employed person pay in Andorra?

An individual who carries out an economic activity on their own account always retains their status as a natural person and is therefore subject to Personal Income Tax (IRPF).

The particularity of the Andorran tax system is that the income generated from the business activity is generally calculated using the rules applicable to Corporate Income Tax. However, the final result is ultimately included in the individual's Personal Income Tax (IRPF) return.

In addition, issuing invoices generally entails the obligation to charge General Indirect Tax (IGI), file the corresponding tax returns, and periodically pay the difference between the tax collected from customers and the deductible tax incurred.

Finally, self-employed individuals must also comply with a range of accounting, record-keeping and documentary obligations throughout the course of their business activity.

To learn more about this subject, we recommend reading our guide to taxation in Andorra, as well as our dedicated articles on Personal Income Tax (IRPF), General Indirect Tax (IGI) and accounting obligations.

Is it better to be self-employed or to set up a company?

The choice between operating as a self-employed individual or through a company depends entirely on the characteristics of each project.

Operating through a company mainly offers limited liability, allowing personal assets to be separated from business assets. It also facilitates the admission of new shareholders and provides a more suitable structure for businesses with growth ambitions or projects of a larger scale.

On the other hand, obtaining a personal commercial licence generally involves lower start-up costs and a simpler administrative structure. However, this option may limit certain future transactions or make it more difficult to expand the business.

For this reason, there is no single correct solution. Each case should be assessed individually, taking into account the entrepreneur's personal, financial, tax and business circumstances.

Common mistakes

The decision to start an economic activity should not overshadow the numerous legal, tax and administrative obligations that accompany it.

Many individuals are unaware of essential matters such as the need to obtain a commercial licence before commencing the activity, the obligation to contribute to CASS, the applicable accounting and tax obligations, or even whether it is more appropriate to operate personally or through a company.

Making these decisions without proper planning can lead to unnecessary costs, unexpected legal obligations, and future complications. For this reason, obtaining specialised professional advice before starting a business activity is strongly recommended.

📞 How can ELYSIUM help you?

If you are considering starting a business in Andorra or launching a new project in the Principality, we can help you determine the most appropriate legal structure for your circumstances.

At ELYSIUM, we advise clients on every stage of the process, from obtaining a commercial licence and incorporating a company, to tax planning, CASS obligations, and all the legal and administrative procedures required to start operating with maximum legal certainty.

You can contact us through our contact form or book a meeting directly at the bottom of this page.

Last updated: July 2026