Modification of the self-employed contribution regime

Last September, Law 9/2019 of February 7, amending Law 17/2008 of October 3 on Social Security and the regulation governing contributions, came into force.

In accordance with the Law 9/2019 on Social Security and the regulation governing contributions to the Andorran Social Security Fund (CASS), starting on September 1, 2019, self-employed workers must contribute under the new contribution bases: 25%, 50%, 62.5%, 75%, 100%, 125%, and 137.5% of the average global salary of the previous year (€2,111.91 /month).

This amendment aims to assign different contribution bases based on the economic capacity of directly insured individuals, modifying the self-employed contribution regime based on:

• The profits obtained from their business or professional activity
• The turnover linked to this activity

Optional and mandatory bases:

Contribution bases below 100%—that is, 25%, 50%, 62.5%, and 75%—are optional and must be requested by the interested party. However, individuals who had a recognized reduced contribution rate before the law came into force will keep it until the expiration date, after which they must declare their new contribution base.

• 25% – Contribution of €116.16
• 50% – Contribution of €232.31
• 62.5% – Contribution of €290.39
• 75% – Contribution of €348.47

On the other hand, contributions equal to or greater than 100%, 125%, and 137.5% are mandatory.

• 100% – Contribution of €464.62
• 125% – Contribution of €580.78
• 137.5% – Contribution of €638.85

Company administrators

Company administrators who perform activities related to the business purpose of the company they manage cannot benefit from any reduced contribution base. They must adhere to a contribution base of 100% of the average global monthly salary of the previous year or, if eligible, 125% or 137.5%.

The burden of proving that the administrator does not perform activities related to the company’s business, in order to qualify for a reduced contribution base, also lies with the interested party. In any case, the administrator will be deemed to perform such activities if the company does not have full-time salaried employees.

How are declarations made?

Declarations for the new self-employed contribution bases must be made online via the CASS website using the national electronic certificate, which must first be requested at the Government building's Formalities Office. Exceptionally, the application for the special regime for people under 35 who start a self-employed activity within the first 24 months must be submitted in person.

Declarations must be made in September, and from January 1, 2020:

• January 1–31: regular update
• February 1–July 31: extraordinary declaration

Surcharges and penalties:

For all of 2019, CASS may adjust the amount of the contribution base according to the economic data provided by the Department of Taxes and Borders (DTF) for the mandatory contribution bases of 100%, 125%, and 137.5%. Starting January 1, 2020, CASS will begin to apply surcharges, interest, legal costs, and any other enforceable expense.

Our team can assist you with any matter related to recent changes in social security. If you have any questions or need clarification, feel free to contact us.