Andorra (AD)
Andorra is a tiny parliamentary co-principality nestled in the Pyrenees mountains between France and Spain, governed jointly by the French President and the Bishop of Urgell.
Retirement & Pension in Andorra
State pension, contribution refunds, private pension vehicles, and international agreements.
Andorra's state pension is administered by CASS (Caixa Andorrana de Seguretat Social) — a Bismarck-model contributory social insurance system. The CASS pension (jubilació) provides retirement income proportional to your lifetime CASS contributions. Andorra does not have a universal state pension — entitlement is entirely based on your contribution record. The 2026 contribution rate for employed workers is 6.5% employee + 15.5% employer (22% total) of gross salary. Andorra has bilateral social security agreements with Spain, France, and Portugal that allow contribution periods to be aggregated. The standard retirement age is 65; early retirement is possible at 61 with at least 40 years of CASS contributions. Given Andorra's high cost of living and the CASS pension's contribution-based nature, private pension planning is essential for most expats. Key questions for expats: (1) How many CASS years will I accumulate before retirement? (2) Does my home country have a bilateral agreement with Andorra? (3) Will my CASS pension be sufficient given Andorra's cost of living? (4) Can I continue contributing to my home-country pension while in Andorra?
State Pension
The CASS pension (prestació de jubilació) is a pay-as-you-go contributory scheme. Your entitlement is calculated on the basis of: (1) Number of qualifying contribution years in Andorra; (2) The salari regulador (average of your best years' CASS contribution salary); (3) The accrual rate per year of contribution. The pension is approximately 60–70% of final salary for a full career, calculated using a points-based model. Contributions are split as 6.5% employee (3% general branch + 3.5% retirement branch) and 15.5% employer (7% general branch + 8.5% retirement branch). CASS does not have a maximum pension cap — higher earners who contributed on higher salaries receive proportionally higher pensions, subject to CASS's contribution ceiling. Self-employed workers (compte propi) pay the full 22% themselves — the 2026 fixed monthly contribution for self-employed is approximately €588/month based on a reference average salary of €2,672.52.
Standard retirement age: 65 years (for both men and women), with minimum 15 years (180 months) of CASS contributions required. Early retirement (jubilació anticipada): available from age 61 if you have at least 40 years (480 months) of CASS contributions — pension is reduced by 7% for each year before standard retirement age (i.e., retiring at 61 results in approximately 28% lower pension). Deferred retirement: working beyond 65 while continuing CASS contributions increases your final pension entitlement. Disability retirement (incapacitat permanent): available at any age following the CASS disability assessment process.
Minimum 15 years (180 months) of CASS contributions to qualify for any CASS retirement pension. With fewer than 15 years: no CASS pension entitlement — a refund of employee contributions may be available instead. Full career benchmark: 40+ years for the unreduced maximum pension. For those who have worked in Spain, France, or Portugal under bilateral agreements, those contribution periods can be aggregated toward the minimum qualifying years. CASS minimum pension guarantee (pensió mínima garantida): approximately €950–1,050/month (2026 estimate) — payable to long-term Andorran residents who meet residency conditions but have insufficient contribution history.
Request your CASS pension projection (projecció de jubilació) through the CASS portal at cass.ad. Log in with your CASS credentials, navigate to Jubilació → Extracte de Cotitzacions. The system shows your full contribution history and projects your estimated pension at standard and early retirement ages based on your current salary. CASS customer service (Andorra la Vella office) can provide personalised projections. Plan early: expats arriving in their 40s or 50s may not accumulate enough CASS years (minimum 15) for a pension entitlement, making private pensions or foreign pension entitlements critical.
The CASS pension can be received abroad after leaving Andorra. Contact CASS to update your bank account to a foreign IBAN. CASS pays pensions internationally — SEPA transfers are available to EU/EEA countries; international wire transfers for other countries. The pension is paid in euros. IRPF: CASS pensions are subject to Andorran IRPF (rates 0–10%) while you are tax resident in Andorra. When you leave Andorra, the pension is taxed only in your new country of residence under the applicable double taxation agreement. Notify CASS immediately of any change of address or banking details to avoid payment interruptions.
Pension Contribution Refund on Leaving Andorra
Employees who leave Andorra permanently before reaching retirement age and have fewer than the minimum 15 years of CASS contributions required for a pension entitlement. Also: nationals of countries without a bilateral social security agreement with Andorra (i.e., not Spain, France, or Portugal) who do not have enough years to aggregate for a bilateral pension.
Those who have already reached the minimum 15-year contribution threshold and therefore have a CASS pension entitlement — even a partial one. Workers from Spain, France, or Portugal (bilateral agreement countries) — their Andorran contribution years are aggregated with their home country system; no refund is issued because the entitlement is transferred into the bilateral framework.
Minimum 2 years after the last CASS contribution before a pension refund can be requested. This waiting period is designed to prevent premature claims by workers who may return to Andorra.
Employee contributions only (6.5% of salary) — not the employer contributions (15.5%). The refund represents only the employee's own contributions, with no interest. The total may be substantially less than expected if your salary was modest or your tenure short.
Submit a pension refund application (sol·licitud de devolució de quotes) to CASS after the 2-year waiting period. Provide: evidence of permanent departure from Andorra (deregistration from Servei d'Immigració), full employment history in Andorra, bank account details for refund transfer, and your foreign address and tax identification number. Processing time: approximately 6–12 weeks.
Before claiming a refund, confirm that no bilateral agreement applies and that you definitely will not return to work in Andorra — once you accept the refund, you extinguish any future CASS pension rights based on those contribution years. For most non-bilateral-agreement nationals with short contribution histories, the refund is the correct choice. Seek gestor or CASS adviser guidance if unsure.
International Totalization Agreements
Andorra has bilateral social security totalization agreements with: Spain, France, and Portugal. These three agreements allow CASS contribution periods to be totalized (aggregated) with contribution periods in those countries for the purpose of calculating pension eligibility. Example: a Spanish national who worked 10 years in Andorra and 20 years in Spain can aggregate all 30 years for Spanish pension eligibility calculations. The benefit accrued during the Andorran period is paid proportionally by CASS; the Spanish period by Spain. Andorra is NOT a member of the EU and is NOT covered by EU Regulation 883/2004. Andorra does not have totalization agreements with the UK, USA, Canada, Germany, Italy, Netherlands, or most other countries — expats from these countries must manage their CASS and home-country pension entitlements independently.
Private Pension Vehicles
Andorran Private Pension Plan (PPP)
Pla de Pensions Privat d'AndorraCASS-registered employed and self-employed residents who want to supplement their CASS state pension with additional tax-advantaged savings.
No direct state subsidy. Tax deduction available on IRPF — contributions deductible up to the annual IRPF framework limits.
Contributions are deductible against Andorran IRPF income at your marginal rate (up to 10%). Given Andorra's low IRPF rates, the tax benefit is modest compared to higher-tax countries but not negligible.
No statutory annual cap analogous to EU pension contribution limits — governed by the AFA (Autoritat Financera Andorrana) regulations and individual plan terms.
Andorran private pension plans are managed by Andorran banks (Crèdit Andorrà, MoraBanc, Andbank). Portability to other countries on departure is complex — typically the plan is maintained in Andorra until retirement age or transferred to a foreign plan if an agreement exists.
The Andorran private pension market is less developed than in major EU countries. Products offered by local banks are the main option. For substantial pension savings, expats often maintain pension plans in their home country (if permitted by home country rules) in parallel with CASS.
Home Country Pension Continuation
Pla de Pensions Estranger (País d'Origen)Expats who retain pension rights in their home country or want to make voluntary contributions to home-country pension schemes while living and working in Andorra.
Depends entirely on the home country's pension rules for non-residents.
Andorra's IRPF may allow deductions for foreign pension contributions under its framework — confirm with your Andorran gestor. Contributions to foreign plans may also qualify for tax relief in the home country if the rules allow foreign-based workers to contribute.
Governed by home country pension rules.
Full portability — the pension remains in your home country system.
UK nationals: HMRC allows voluntary National Insurance Class 2/3 contributions from abroad (approximately £180–800/year adds State Pension entitlement — very cost-effective). US nationals: no self-employment tax treaty with Andorra — US Social Security contributions are not required in Andorra (CASS applies instead), but voluntary IRA/Roth IRA contributions may continue subject to US rules. EU nationals: rules vary by country for voluntary contributions from abroad — check with your home country's pension authority.
International QROPS / Offshore Pension Plan
Pla de Pensions Internacional (QROPS/QNUPS)UK expats in Andorra wanting to transfer UK pension pots and potentially benefit from Andorra's low IRPF rates on drawdowns. High-net-worth individuals seeking international pension structures.
None.
QROPS in a jurisdiction with a double taxation agreement with Andorra (Malta QROPS, Gibraltar) may allow pension drawdown at Andorra's IRPF rates (0–10%) rather than UK income tax rates — potentially significant for high pension values.
Governed by QROPS regulations and AFA authorisation requirements.
Designed to be portable — key purpose of QROPS is flexibility across jurisdictions.
QROPS are complex and regulated by HMRC — incorrect setup creates a 25% Overseas Transfer Charge. Always use a qualified regulated adviser. Andorra itself does not have a QROPS regulatory framework — the QROPS sits in a third jurisdiction (Malta is most common for Andorra-based residents). Seek specialist UK pension and international tax advice before initiating any QROPS transfer.
Early Retirement Options
CASS early retirement (jubilació anticipada) is available from age 61 with at least 40 years (480 months) of CASS contributions. The pension is reduced by 7% for each year before age 65 (i.e., retiring at 61 results in approximately 28% lower pension). There is no CASS partial retirement option comparable to some EU systems. Andorra has no special early retirement schemes for specific sectors. FIRE (Financial Independence, Retire Early) strategy: given CASS's modest benefits for short-tenure contributors, many expats in Andorra pursuing early retirement rely primarily on investment income — aided by Andorra's 0% capital gains tax and low income tax on investment income. Those with fewer than 40 CASS contribution years cannot take early retirement under CASS rules and must wait until age 65.
Pension Gap Warning
Most expats who relocate to Andorra mid-career face a significant pension gap: (1) CASS pension will be lower than a full working life would generate, due to fewer contribution years. (2) Home country state pension may be reduced if you stopped contributing to it. (3) Andorra's CASS minimum guarantee of approximately €950–1,050/month is insufficient for Andorra's high cost of living (1-bedroom apartment alone: €800–1,200/month). The CASS pension replaces approximately 60–70% of final salary for a full 40-year career — those with shorter contribution histories will receive proportionally less. Action required: before moving to Andorra, calculate your projected CASS pension (years × accrual rate), your home country pension entitlement, and the private savings gap needed to fund your desired retirement. Building a private investment portfolio (Andorra has 0% capital gains tax) is the most common strategy for Andorra-based expats to bridge the gap.
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Retirement & Pension
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