Expand your organization into Andorra with or without an Andorran entity
Despite its small size and population, the landlocked microstate of Andorra has a developed economy and attracts a significant amount of foreign investment.
If you are contemplating an expansion project into Andorra, you should be prepared to experience unexpected delays. The country has a complex framework of employment and business regulations, and is also influenced by neighboring country’s regulations to some extent. This legal navigation, along with the language barrier, can result in slow progress and potentially lead to lost revenue and increased costs.
At New Horizons, we help businesses from all industries to expand abroad, including into Andorra. Our professional employer organization (PEO), employer of record, and payroll services can provide your organization with everything you need to kickstart your Andorran expansion in a matter of days, not months, even if you don’t have an established entity in the country.
As the only global PEO with an in-house recruitment team, we can also take care of the sourcing, hiring, and onboarding of your Andorran workforce, along with any ongoing HR and compliance admin. Our bespoke services can save you thousands in expansion costs and provide you with a faster route into Andorra.
Our Andorra PEO simplifies your expansion
New Horizons enables your business to expand its operations into Andorra, without you needing an Andorran subsidiary.
Hiring in Andorra: Employment law overview
Employment contracts in Andorra
Employment contracts in Andorra can theoretically be verbal or written, but we strongly recommend using written contracts for all employees. Your employment contracts should include any relevant details of the agreement, such as compensation, should be written in Catalan, and should use the Euro currency.
Working hours in Andorra
The standard working week in Andorra is 40 hours, spread over five days. Beyond this, employers must pay overtime rates of 125% for the first four hours, 150% for the fifth to eighth hours, and 175% for nine hours or more. Overtime is also limited to two hours per day.
Public holidays in Andorra
New Year’s Day
All Saints’ Day
Immaculate Conception Day
St. Stephen’s Day
Vacation leave in Andorra
Employees in Andorra are entitled to six weeks (30 days) of paid vacation leave annually.
Sick leave in Andorra
Employees in Andorra are legally entitled to paid sick leave. This is covered at 53% or normal pay for the first 30 days of absence, then 66% for days 31 to 540, then 60%.
Parental leave in Andorra
Female employees in Andorra are entitled to 16 weeks of maternity leave at full pay. Fathers are entitled to 14 days of paternity leave at full pay, but the mother can choose to transfer some of her leave entitlement after she has used six weeks.
Terminations and severance in Andorra
Employees in Andorra are entitled to notice of termination. For every month with an employer, employees accrue one day of notice, up to a maximum of 90 days. These notice periods do not apply for workers in a probation period, which are from one month to three months in length depending on the seniority of the role.
Taxation in Andorra
Income tax in Andorra is very low compared to most countries, which is one of the drivers of its economy. Rates range from 0% to 10%, depending on income level. Similarly, corporate tax is relatively low, with a standard rate of 10%.
Health coverage in Andorra
Andorra has state-funded universal healthcare, so employers do not need to provide private medical insurance to employees.
Andorra compensations & benefits
Compensation laws in Andorra
The minimum wage for employees in Andorra is €5.63 per hour.
Benefit management in Algeria
Setting up a benefits system for your employees in Andorra can be confusing if you are not familiar with the nation’s complex labor laws, language, and cultural differences, so it is common to experience delays.
New Horizons can simplify your Andorra benefits management, with our Andorra experts setting up and managing everything for you and helping you focus on a successful expansion operation.