Working in Andorra as a French National: Authorisation, Minimum Wage, Tax and Contributions

Andorra does not belong to the European Union: French nationality gives no automatic right to work on its territory. A tourist stay requires no visa, but carrying out a professional activity requires a residence and work immigration authorisation, processed by the Departament d’Immigració of the Govern d’Andorra. The authorisation is tied to an employer or to a declared self-employed activity and depends on quotas: the Govern has approved, for example, a reserve of 125 self-employed residence and work authorisations.

For an employee, the procedure starts with the Andorran employer, who submits the employment contract; for a self-employed person, a self-employed residence and work file must be filed (initial authorisation), with a demonstration of the economic viability of the activity. Once the authorisation is obtained, affiliation to CASS is automatic from the start of the activity. The durations are two years for the initial authorisation, two years for the first extension, three for the second, then ten (Govern d’Andorra). The page living in Andorra presents all the types of residence.

The cross-sector minimum wage is set, under article 73 of Law 31/2018 on labour relations, by the Andorran government, which revises it each year: it applies toany employee over 15, and the Govern publishes the monthly, daily and hourly amounts. The reference day is 8 hours, the week 40 hours, and annual leave 30 calendar days or 22 working days. Offences relating to wages and working time are punished by articles 158 to 160 of the same law, and the Servei d’Inspecció de Treball (Andorra la Vella) is the competent service.

Salary levels above the minimum vary by sector and position: the Govern publishes no single scale, and offers are compared on the monthly gross salary, to which the CASS contributions described below apply. The employment contract is concluded under Andorran law; an employee seconded by a French employer remains governed by their original contract during the assignment.

Personal income tax (IRPF) is governed by Law 5/2014: “the tax rate is 10%” (article 43). The tax-free personal minimum is €24,000, and, according to the Govern’s tax guide, income between €24,000 and €40,000 benefits from an equivalent rate of 5% obtained through a tax rebate capped at €800. Savings income is calculated separately. These rules, read in the Govern’s IRPF guide, should be confirmed each year with the Departament de Tributs i de Fronteres before filing.

For France, the Franco-Andorran tax agreement signed in Paris on 2 April 2013 (Decree no. 2015-878 of 17 July 2015) sets tax residence: a resident of Andorra is a person who stays there more than 183 days in the calendar year, or who has the centre of their economic interests there or mainly carries out their professional activity there. The mere fact of holding an Andorran residence permit is not enough to establish tax residence (impots.gouv.fr). A French national who settles must therefore examine their situation with regard to both states before leaving their French tax home.

CASS levies 22% of total gross salary, split between the employer (15.5%) and the employee (6.5%): general branch (sickness, maternity, accidents, disability) 10%, of which 3% employee and 7% employer; retirement branch 12%, of which 3.5% employee and 8.5% employer. If the employee already receives a pension, only the general branch applies, i.e. 10% of gross salary. The employer deducts the employee share from the salary, with no possibility of departing from this by agreement (CASS).

• Locally hired employee: affiliation to CASS, with sickness rights opened after 25 days of contributions and a salary at least equal to the minimum wage (CLEISS).
• Seconded employee: remains in the French scheme with no additional contribution, with the secondment certificate SE 130-01 (CLEISS).
• Before departure: report your departure to the CPAM (French health insurance fund), the CAF (family allowances fund) and France Travail (the employment agency) to avoid the undue payment of French benefits.

The agreement of 12 December 2000 applies whatever the nationality and eases the transition from the French scheme to the Andorran scheme, notably through the aggregation of periods (form SE 130-03). See also the glossary entry on the seconded employee.

A self-employed person applies for a self-employed residence and work authorisation, counted within an annual quota. The Govern has also created two statuses suited to remote activity. The digital nomad residence requires a favourable opinion from the ministry in charge of the economy on the fact that the activity is carried out without a fixed location by telecommunications, an actual presence of 90 days a year and compliance with a quota. The internationally oriented professional residence requires an unremunerated deposit of €47,500 with the Autoritat Financera Andorrana (€9,500 per dependant), an activity established in Andorra with at most one employee and at least 85% of services used outside Andorra.

A remote worker who keeps a French employer without a residence and work authorisation falls outside these statuses: their social and tax situation is settled before departure, in liaison with the Urssaf (the French social contributions collector), CLEISS and the Govern. The secondment of an employee of a company established in France is the framework provided for by the agreement: the employee keeps their French scheme, reimbursed on paid invoices (form S 3125c) or by presenting form SE 130-08 to the Andorran body, and their dependants who accompany them have the same routes (CLEISS). On the social protection of a self-employed person, see the page healthcare reimbursement in Andorra.

There is no unemployment insurance in Andorra: the Ministry of Social Affairs pays a means-tested involuntary unemployment allowance, reserved for employees (CLEISS). It requires 36 months of contributions out of the last 60 (18 months for under-26s), registration with the employment service and resources below a reference threshold; it lasts six months, extendable by three for those over 50 or with family responsibilities. The self-employed are not entitled to it.

Daily sickness allowances are 53% of the average salary for the first thirty days (three-day waiting period), then 66%; maternity leave is 20 weeks at 100% and paternity leave 28 consecutive days, also at 100% (CLEISS, values from the country sheet).

In case of an industrial accident or occupational disease, no minimum period of affiliation is required: the employer reports the accident within two days, medical costs are covered at 100% of the liability tariff and daily allowances reach 66% for the first thirty days, then 70% (CLEISS). After the loss of a job, the right to care is maintained for 60, 90 or 120 days depending on the contribution period, provided the person resides in Andorra. Retirement at 65 is detailed in the page retiring in Andorra.

Macroeconomic figures are displayed in real time in the “Economic indicators” block above. Detailed sector statistics (employment by sector, average wages, companies) are published by the Govern’s Departament d’Estadística. The official amounts cited by the Govern are expressed in euros, which simplifies comparisons with France.

On the health side, current spending represents about 8% of GDP according to the World Bank, with a life expectancy at birth above 84 years: the level of social protection is part of the attractiveness of the labour market. A foreign candidate usefully compares the gross salary offered, the length of the residence authorisation and their family’s health cover before accepting an offer.