Remote’s guide to employing in

Andorra
andorra flag

With localized contracts, easy invoice management, and best-in-class compliance, you can grow your team in Andorra with confidence. Currently, you can hire and manage contractors in Andorra through Remote, but our EOR services are not yet live.

  • Capital City

    Andorra la Vella

  • Currency

    Euro (€, EUR)

  • Languages

    Catalan

  • Population size

    77,543

Services available in this country:
Contractor Management
Andorran countryside

Facts & Stats

Andorra Map Illustration
  • Capital City

    Andorra la Vella

  • Currency

    Euro (€, EUR)

  • Languages

    Catalan

  • Population size

    77,543

  • Ease of doing business

    N/A

  • Cost of living index

    N/A

  • Payroll frequency

    N/A

  • VAT - standard rate

    4.5%

  • GDP - real growth rate

    1.8% (2019)

Looking at a map of the Iberian Peninsula, Andorra looks like a small drop of land wedged uncomfortably in between the mighty shadows of France and Spain. But don’t be mistaken. There’s more to this mountain-laden microstate than first meets the eye.

With a landmass amounting to less than 500 km2, and just under 80,000 citizens, Andorra draws over 10 million tourists who come for sightseeing across the tiny state’s forests, hills, and valleys. The Andorran capital is Europe’s highest — a lucky pick for a nation of just under 500 km2.

As a result, Andorra is home to a strong tourism and hospitality industry that attracts a huge amount of expats to work in the nation’s ample hotels, restaurants, bars, and ski resorts.

Andorra is famous as the world’s only co-principality where sovereignty is shared between an ecclesiastical figure (the Bishop of Urgell) and an elected leader (the French President).

Among the millions of tourists and digital nomads that Andorra attracts, you’re likely to find a significant portion of the population open to remote work with years of experience working for international organizations.

Grow your team in Andorra with Remote

You can pay contractors now in Andorra with Remote. Note that we are busy building our own entity in Andorra to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.

To employ in Andorra, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Andorra can get complicated fast, especially without localized expertise.

If you're looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.

In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks of misclassification

Andorra, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Andorra may lead to fines and penalties for the offending company.

Employing in Andorra

Provisions for employee protections and workers’ rights are spelled out in the Andorran Constitution of 1993 and the Labour Law of 2008, both of which guarantee protections against discrimination based on age, religion, gender expression, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Andorra.

Minimum wage

The Andorran minimum wage is fixed at €6.25 hourly, €50 per day, or €1,083 per month.

Effortless HR in Andorra: Take the Tour

Seamlessly Manage Your Workforce, from First Hire to Final Paycheck

Competitive benefits package in Andorra

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

We are still busy building our own entity in Andorra, but our benefits packages for all countries are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Dental Insurance

  • Vision Insurance

  • Mental Health Support

  • Pension or 401(K)

  • Life and Disability Insurance

Taxes in Andorra

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Andorra.

  • 15.5%

    Social security contributions

Types of leave

Employees are entitled to six working weeks (i.e. 30 working days) of paid vacation annually.

Employment termination

Termination process

Employee contracts can generally be terminated at will, as long as employees are notified before they’re laid off.

Notice period

Except they’re under probation, employees earn a day’s prior notice for every month they spend working with an employer.

Severance pay

Employees who’re dismissed unfairly are entitled to severance payments proportional to their tenure working with an employer.

  • Up to 5 years: Two months salary plus one week’s pay per year

  • 5 - 15 years: Two months salary plus two week’s pay per year

  • 15+ years: Six months salary plus three weeks’ pay per year

Probation periods

Probation periods must be defined in the employment contract and can last anywhere from a month for fixed-term contracts to three months for managerial positions.

Fair Pricing in Andorra

Contractor Management

Compliantly onboard and pay contractors

$29

per contractor/month

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Top features

  • Only pay for contractors you actively work with

  • Work with contractors in 200+ countries

  • Create, edit, and sign tailored, localized contracts

  • Approve contractor invoices with one click or auto-pay

  • Transparent payments with complete visibility

Remote Payroll

Consolidate your multi-country payroll

$50

per employee/month

Top features

  • Reduce costs by centralizing payroll management

  • Ensure local compliance for every country

  • Direct support from in-house local payroll experts

  • Accurate, on-time, compliant payroll to level-up your employee experience

  • Tax and labor authority reporting handled for you

HR Management

Manage all of your employees in one place

Free
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Top features

  • Guided onboarding and offboarding

  • Employee profile and document management

  • Time and attendance (time off and tracking)

  • Expense management and reimbursement

  • Employee self-serve on the platform and mobile app