Andorra Streamlines Processes for Cross-Border and Seasonal Workers
The government of Andorra has made significant changes to the tax regulation for non-resident workers. The amendment aims to simplify the process for accessing the special regime for cross-border and seasonal workers. This adjustment is in response to requests from the business sector and is part of a broader initiative to streamline and digitize tax procedures in the country.
Changes to Tax Regulations for Workers
The updated regulation allows employers to submit applications on behalf of their employees electronically. This telematic feature will help optimize administrative processes and reduce waiting times, especially during the peak winter season when public inquiries often rise.
Details of the Special Regime
The special regime permits non-resident workers employed by Andorran companies to pay taxes according to general income tax rules. This includes:
- The ability to claim deductions, including contributions to the CASS (Andorra’s social security system) and a 3% deduction.
- A personal income tax exemption threshold of €24,000.
- Tax credit benefits that lower the overall tax obligation.
Expected Impact of Regulation Changes
The Andorran government estimates that approximately 5,000 seasonal workers will benefit from these regulatory changes. This initiative highlights the government’s commitment to facilitating a favorable working environment and improving administrative efficiency.
As Andorra continues to modernize its tax processes, such reforms are crucial for enhancing the experience of businesses and their employees in the principality.
