Remote work has been consolidating in many digital companies, especially after the pandemic, thanks to the push from many legislators who are beginning to recognize and facilitate the figure of the digital nomad.
In fact, Andorra has joined the countries that want to facilitate the attraction of this type of residents to their country through the implementation of the visa for digital nomads introduced by Law 42/2022, of December 1, on the digital economy, entrepreneurship, and innovation.
The digital nomad visa in Andorra is relatively new, and despite having been in force practically all of 2023, it has only been available since mid-2023 since there was no regulation that developed the application procedure.
What is a digital nomad according to Andorran legislation?
In general terms, a digital nomad is understood as a person who does not require a specific geographical location to carry out their work and uses telecommunications and technology for the development of their professional activity.
They are generally called nomads because they travel a lot during the year without having a fixed residence or a specific time zone, and digital because they can perform their work without physical presence in a specific place, doing it through telematic means.
In our experience, digital nomads are employed or self-employed workers with profiles such as software developers, data engineers, content creators, technology consultants, etc.
Also, the Law does not require that the nomad must be employed by an Andorran company, so they can be employees of foreign companies or even freelancers or contractors.
What is the Visa for Digital Nomads in Andorra?
The visa for digital nomads in Andorra is a new residence permit added to the already existing active and passive permits designed for foreign people who:
- Carry out all their work through telecommunications and technological means (computer, online communication, social networks, etc.);
- Do not require a specific geographical location to carry out their work;
- Provide services to people or entities not residing in the Principality of Andorra.
What Requirements are Needed to Obtain the Digital Nomad Visa in Andorra?
To obtain the digital nomad residence permit, it must be taken into account that approval from the government of Andorra is required, which seeks to promote the digital economy in Andorra through the acceptance of these new residents.
Specifically, it is still unclear whether the work carried out by the applicant is linked to contributing to the development of the digital economy, entrepreneurship, or innovation in the Principality of Andorra, but the legally established requirements will be explained below.
To be eligible for this visa, you must meet the following requirements:
- Approval from the Ministry of Economy: You must obtain a favorable resolution from the ministry in charge of the economy that recognizes you as a person who works remotely using telecommunications and technology.
- Residence authorization application duly filled out and accepted by the government.
- Sworn declaration of criminal record.
- Sufficient financial means: It is essential to demonstrate that you have the necessary financial means to reside in Andorra during the validity period of the visa. The specific details on how much you need will be established by regulation.
- Documentarily prove that you own or lease a dwelling or similar that meets the minimum habitability conditions required by regulation.
- Commitment to establish effective residence in Andorra for a minimum of 90 days per calendar year.
- Justify and have in force for Andorra coverage and insurance for illness and disability for the applicant.
- Pass medical tests in Andorra.
How to obtain approval from the Ministry of Economy for the Digital Nomad Visa?
A primary, if not the most important, requirement is to obtain a favorable resolution from the ministry in charge of the economy to be considered a person who does not require a specific geographical location to carry out their work and uses telecommunications and technology.
To achieve this, the digital nomad must attend to what is specified in the Regulation of the digital economy that develops Decree 212/2023, of May 10, 2023. Specifically, the following documentation is requested from the applicant:
- Passport or ID of the applicant.
- Sworn declaration that to carry out their work, the applicant does not require a specific geographical location and uses telecommunications and technology – describing their work as much as possible.
- Any other document considered appropriate to substantiate the application, such as certificates from employers or companies certifying that the worker or freelancer can carry out their work telematically.
This is a very relevant certificate and, in our experience, difficult to obtain; we strongly recommend the assistance of professionals in the preparation of this documentation.
What are the benefits of the Digital Nomad Visa?
Andorra has attracted thousands of entrepreneurs, digital nomads, and businessmen over the last decade who have been constrained by high entry requirements and little flexibility (obligation to invest in the country, make a deposit in the AFA, pay to the CASS, reside more than 183 days, etc).
This new permit offers much easier and more flexible entry to the country for the following reasons:
- The digital nomad saves the deposit of 50,000 EUR against the Andorran financial authority.
- There is no obligation to establish a company to be a tax resident.
- There is no obligation to pay to the CASS (social security) having to pay life insurance instead.
- The minimum stay required by the Andorran authority is 90 days.
- Allows being a tax resident in Andorra if the digital nomad meets the requirements established in the income tax law.
How to take the first step?
Andorra is positioning itself as an ideal destination for digital nomads. With its new visa, the country offers a unique opportunity for those looking for a balance between work and quality of life. If you meet the requirements and are looking for a change, Andorra awaits you!
If you are interested in changing your tax residence to Andorra through the digital nomad visa, we recommend reading the report “The Best 3 Tax Destinations”, with the most complete information on taxation, residence, and requirements for living in Andorra.
With the recent boom of YouTubers who have changed their residence to the Principality, dozens of websites of fraudulent advisors have emerged offering the service of residences in Andorra, but they do not carry out the pertinent legal and fiscal analysis.
It is important to emphasize the importance of being well-advised: on more than one occasion, we have encountered clients who opted for unqualified advisors to create their company and ended up with serious problems before the tax administration of their country of origin.
From Relocate&Save, we guarantee the utmost rigor for the transfer of tax residence.
Contact our Monaco expert
Jean-Marc Remy
Expert in Monegasque residencies and Monegasque / French tax law. Former Deloitte affiliate.
