Andorra continues to be one of the most attractive jurisdictions for independent professionals thanks to its competitive tax system, moderate tax burden, and a more flexible social security contribution scheme than many other European countries. However, 2026 brings important updates to the CASS contribution bases that should be considered before starting or maintaining a self-employed activity.
CASS Contribution Base Update for Self-Employed Workers in 2026
The Andorran Social Security Fund (CASS) calculates self-employed contributions based on the country's average monthly salary, which has been set at €2,672.52 per month for 2026. A contribution rate of 22% is applied to this base, distributed between the general branch and the retirement branch.
Since the introduction of the tiered contribution system, self-employed contributions are no longer the same for everyone. Instead, they depend on the annual net income declared by each taxpayer.
Self-Employed CASS Contributions in Force for 2026
Annual Net Income | Contribution Base Percentage | Monthly CASS Contribution |
|---|---|---|
Less than 6.000 € | 25% | 146,99 € |
De 6.000 € a 12.000 € | 50% | 293,98 € |
De 12.000 € a 18.000 € | 62,5% | 367,47 € |
De 18.000 € a 24.000 € | 75% | 440,97 € |
De 24.000 € a 40.000 € | 100% | 587,95 € |
De 40.000 € a 50.000 € | 125% | 734,94 € |
More than 50.000 € | 137,5% | 808,44 € |
Note: These amounts may be subject to administrative adjustments or regulatory updates during the fiscal year.
IGI: When Must a Self-Employed Worker Charge It?
IGI (Impost General Indirecte) is Andorra's equivalent of VAT. The standard rate is 4.5%, making it one of the lowest indirect tax rates in Europe. Reduced rates also apply to certain sectors and activities.
As a general rule, self-employed professionals must charge IGI on invoices when carrying out activities subject to this tax. Depending on turnover and the nature of the activity, returns may need to be filed on a semi-annual, quarterly, or monthly basis.
Accounting Obligations for the Self-Employed in Andorra
Although the administrative burden is lighter than in many countries, self-employed workers in Andorra must comply with several accounting and tax obligations.
1. Issuing and Retaining Invoices
Invoices must be issued with sequential numbering and retained together with supporting documentation for business expenses.
2. Maintaining Records of Income and Expenses
It is advisable to keep up-to-date records of income, deductible expenses, and bank transactions to facilitate tax filings and potential tax audits.
3. Tax Filings
Depending on their situation, self-employed individuals may be required to comply with:
- IGI returns.
- Annual Personal Income Tax (IRPF) return.
- Advance IRPF payments when applicable.
- Notifications related to the CASS contribution base.
4. CASS Contributions
Registration with CASS is mandatory from the start of any economic activity, and contributions must be paid monthly.
Practical Examples Based on Turnover Levels
To better understand the impact of contributions, let's look at three common scenarios.
Case 1: Freelance Professional with Annual Revenue of €15,000
- Annual turnover: €15,000
- Approximate net income: €12,000
- Applicable CASS bracket: 62.5%
- Monthly contribution: €367.47
- Annual CASS cost: €4,409.64
Case 2: Consultant with Annual Revenue of €35,000
- Annual turnover: €35,000
- Approximate net income: €28,000
- Applicable CASS bracket: 100%
- Monthly contribution: €587.95
- Annual CASS cost: €7,055.40
Case 3: Digital Professional with Annual Revenue of €60,000
- Annual turnover: €60,000
- Net income exceeding €50,000
- Applicable CASS bracket: 137.5%
- Monthly contribution: €808.44
- Annual CASS cost: €9,701.28
These examples are indicative and may vary depending on deductible expenses, the nature of the activity, and each taxpayer's specific tax situation.
Conclusions
The self-employed system in Andorra remains highly competitive in 2026, although CASS contributions continue to rise in line with the country's average salary growth. Understanding contribution brackets, accounting obligations, and IGI management is essential for properly planning a professional activity and avoiding tax-related issues.
Before registering as self-employed or modifying a contribution base, it is advisable to carry out personalized tax planning in order to optimize costs and ensure full regulatory compliance.
