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Andorra is known for its extremely low taxes, including no personal income tax and low corporate taxes. This results in significant cost savings for both employees and employers. Andorra is politically stable and has a well-established legal system. Its economy is characterized by low inflation and a strong financial sector, providing a secure environment for businesses.

Catalan and Spanish are the official languages of Andorra, and many residents are bilingual or multilingual, with French being commonly spoken as well. This linguistic diversity can be advantageous for international business operations.

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Minimum Wage

In Andorra, the minimum wage stands at 1,286.13 EUR per month, equivalent to 7.42 EUR per hour.

Working Hours

Standard Working Hours

The standard working hours in Andorra are 40 hours per week and 8 hours per day.


to regulation through employment contracts or collective agreements.

Compensation for overtime is structured as follows:

– The initial 4 hours of overtime per week must be remunerated at a rate not less than 25% of the hourly wage.

– The subsequent 4 hours of overtime warrant compensation at a rate not less than 50% of the hourly wage.

– If the accumulated overtime exceeds eight hours weekly, a minimum 75% of the hourly wage is compensated.


In Andorra, salaries are paid in monthly instalments. This is usually paid on the last working day of the month. A 13th salary instalment is not compulsory; however, bonuses may be granted at the employers discretion.


Paid time off

Once employees have completed a minimum of 12 months of service, they have the right to a minimum of 30 paid vacation days, as specified in the Labor Agreement. In cases where the one-year service requirement has not been met, annual leave is proportionally adjusted.

Sick Pay

Workers have the privilege of accessing sick leave for a period of 12 months, and this duration can be extended in instalments of 6 months, allowing for a total of 3 years. Following the initial medical certificate, healthcare professionals such as doctors or dentists are responsible for recommending the insured individual’s medical absence. It is obligatory for the insured person to submit the initial medical certificate issued by the healthcare provider to the company within a timeframe of 48 hours.

Maternity Leave

The Andorran Government has introduced Maternity Leave, which is financially supported by the social security system. At present, the maternity leave allocation in Andorra is 16 weeks of paid maternity leave. This duration extends to 18 weeks in cases involving medical complications or instances of multiple births.

Paternity Leave

In the initial six months following the birth of a child, fathers are eligible for themselves of up to 14 days of paternity leave, during which they receive their full salary.


Termination of Employment

In Andorra, employment regulations protect employees by limiting the reasons an employer can use to terminate their employment. Comprehensive guidelines regarding dismissals in Andorra are provided within the Labor Law.

The employment agreement outlines the severance payments owed. However, the employer is obligated to provide compensation to employees who have worked for a minimum of 6 months.

Notice Period

The notice duration applicable to every employee varies based on their length of service with the company. After completing six months of service, the notice period extends to one day per month worked, with a maximum of 90 days.

Probation Period

The length of the probationary period in Andorra varies based on the nature of the position and is defined in the employment agreement. Generally, probation periods range between three to six months.


In Andorra, a job offer letter from a company based is mandatory for all visa applications.

The initial authorisation issued by the Andorran authorities is for a period of one year, and it can be extended up to 3 times every two years. After these initial periods, the renewals will be granted for 10-year terms.

Andorra offers opportunities for investors and entrepreneurs. If you plan to invest or start a business in Andorra, there might be specific visa categories or residence programs.

The specific duration of any visa authorisation needs to be determined beforehand. These permits are categorised into two groups: working temporarily while residing within Andorra and working temporarily while residing within the border area (outside the Andorran territory).


The standard rate of VAT in Italy is 22.00%.

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