Andorra is an independent principality in Europe that sits between France and Spain in the Pyrenees mountains. The small country has a population of over 76,000. It’s the only co-principality in the world where two princes, the President of France and a bishop appointed by the pope, share the tasks of prince and head of state. Today, the country is known for duty-free shopping, ski resorts, boutiques, and jewelers.
If you’re looking to expand to Andorra, you can quickly benefit from all that the country has to offer. However, you need to set up your Andorra payroll and make sure you have an entity to work in the country first. G-P offers Andorra payroll outsourcing to prevent you from setting up your own payroll. Instead, we’ll add your employees to our payroll for a quick and easy expansion.
Taxation Rules in Andorra
Andorra has three different tax brackets that range from 0-10% depending on how much an employee earns. Married couples have a whole different tax bracket that includes 0% and 10% rates. Once a company creates a registered office in Andorra, it must pay a corporate tax of 10% on all income.
Andorra Payroll Options for Companies
Companies expanding can choose from four different Andorra payroll options, including:
- Internal: Do you operate a large company and plan to work in Andorra long-term? If so, you may want to establish an internal payroll with a full HR staff.
- Remote: Smaller companies often do not have the resources for an internal payroll, but they can add their employees to their parent company’s payroll. This action requires careful thought, however. You’ll need to make sure you follow the right regulations per country.
- Local outsourcing company: Choosing to work with an Andorra payroll processing company is one way to keep money in the local economy, but you’ll still need to learn all the local laws and regulations, as you will be held compliant.
- G-P: At G-P, we can use our payroll to pay your employees through Andorra payroll outsourcing. Doing so will eliminate your need to set up a payroll, and you won’t have to learn laws related to compliance.
How to Set Up a Payroll in Andorra
Before you set up your Andorra payroll, you’ll need to make sure you have either a subsidiary in the country or a relationship with a global PEO. A subsidiary will give you legal authority to work in the country, but it will take weeks or months to establish. G-P will help you start working right away with our Andorra PEO. You’ll still have the same authority and access to the country — just without all the hassle.
Entitlement/Termination Terms
Terminating an employment relationship is a frequently tricky task in other countries, especially when you’re not completely familiar with the laws. We recommend adding entitlement and termination terms to all employment contracts before hiring or setting up your Andorra payroll. In Andorra, employers or employees can terminate an employment contract. Employers, on the other hand, must give notice of one day per month up to a maximum of 90 days. You must also make severance payments to employees.
Payroll Processing Company in Andorra
Working with G-P is your key to finding someone to manage the risk while you manage your company. Contact us today to learn more about Andorra payroll outsourcing.
