The Principality of Andorra attracts many French entrepreneurs and retirees, seduced by its quality of life and its tax benefits. But did you know that a social security agreement links France and Andorra, making it easier to settle in this small Pyrenean country? At AND Capital, a firm of chartered accountants specializing intax optimization and support for expatriates in Andorra, we explain all you need to know about this essential agreement.
CASS: the Andorran Social Security Fund
The Caixa Andorrana de Seguretat Social (CASS) is the organization in charge of managing social security in Andorra. Created in 1968, it is responsible for health coverage and various social schemes for all residents.
CASS reimburses up to 100% of medical and pharmaceutical expenses for affiliated services, and up to 33% for non-affiliated services. A retirement branch also manages retirement and widowhood pensions.
A bilateral agreement between France and Andorra
The social security agreement between France and Andorra is a bilateral agreement, and therefore concerns only these two countries. It entitles workers who have paid contributions in one of the two countries, and their families, to various benefits:
- Maternity and medical benefits
- Pensions (retirement, disability, widowhood)
- Compensation in the event of illness or industrial accident
"The principle is simple: periods worked and contributed to in one country can be used to obtain rights in the other. This is a considerable advantage for people wishing to settle in Andorra.
- The AND Capital team
Social security contributions in Andorra
Membership of the Andorran Social Security system is compulsory for all employees and self-employed workers. Contributions amount to 22% of gross salary, divided between employer and employee. For self-employed independentThese amount to 22% of the average Andorran wage, with possible adjustments depending on sales.
Services covered by the agreement
Of the 22% in contributions, 10% are used to finance health benefits (care, maternity), and 12% for retirement. For the latter, contributions are used to acquire "points", the value of which is updated each year, and which serve as the basis for calculating the pension.
The social security agreement also covers disability pensions, death benefits and family allowances. This agreement concerns employees, independent and their beneficiaries, as well as inactive pensioners and civil servants.
Support from AND Capital
At AND CapitalWe can help you with all the formalities involved in relocating to Andorra: business start-up, tax optimization, opening a bank accountbut also to obtain your tax residence. Our experts are on hand to advise and guide you, to make your move to Andorra a success.
The social security agreement between France and Andorra is an undeniable asset for entrepreneurs and retirees wishing to take advantage of Andorra's attractive tax environment. Don't hesitate to contact AND Capital to find out more and benefit from our expertise!
