Establishing and maintaining an Andorra payroll
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’re interested in building your business in Andorra, then one of the first steps is likely to be hiring an Andorran workforce, which usually means establishing a payroll in Andorra. This can turn into a lengthy and time-consuming process for many organizations, with a complex and unique set of regulations to navigate.
At Horizons, our experts offer Andorra payroll setup and management outsourcing, enabling your organization to start hiring and expand more quickly and efficiently, whether or not you already have an established entity in the country.
If you have an entity in Andorra
If you don’t have a registered entity in Andorra, you can use our full payroll outsourcing service. Our Andorran subsidiary will act as employer of record for your employees, and our team will handle the HR, administration, and complex legal compliance work.
Choose this service for a low-risk, flexible, and scalable solution for your Andorran payroll setup and management, with all the benefits of hiring locally and none of the usual complications.
If you don’t have an entity in Andorra
If your business has not registered an official entity in the country, then you have the option of hiring through our Andorran subsidiary. We can act as employer of record in the country, set up and manage your payroll, and handle associated HR, administration, and compliance.
This solution provides a low-risk, scalable, and flexible route into the Andorra payroll marketplace so you can access all of the benefits of employing locally without any of the hassle.
Build your business in Andorra with help from Horizons
Andorra payroll guide
What withholdings and taxes are required 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%.
Entitlements and terminations
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.
How to establish an Andorra payroll
The most important thing when setting up an Andorran payroll is preparation. You will need to ensure you are fully compliant with the complex regulations and have strong written contracts in place for each employee, or you may be risking expensive legal trouble.
Horizons offers comprehensive payroll setup and management services, helping you get up and running in the country as quickly as possible. We can also offer our Andorra subsidiary to act as employer of record, so you can benefit from our services even if you don’t have an entity in the country.