Remote work is becoming more common in many companies in the digital economy, especially after the pandemic, thanks to pressure from many legislators who are beginning to recognize the peculiarities and provide support to digital nomads.

In turn, Andorra has joined the countries that want to make it easier to attract this type of resident to their country by introducing a visa for digital nomads through Law 42/2022, of 1 December, on the digital economy, entrepreneurship and innovation.

The digital nomad visa in Andorra is a relatively new one, and although the law has been in place for most of 2023, it has only been available to applicants since mid-2023, as there were no regulations in place setting out the application process.

Who is a digital nomad according to Andorran law?

In general terms, a digital nomad is defined as a person who does not require a specific geographic location to perform their work and uses telecommunications and technology to develop their professional activities.

They are commonly referred to as nomads because they travel extensively throughout the year without having a permanent residence or a specific time zone, and digital because they can do their work without being physically present in a specific location, doing so through telematic means.

In our experience, digital nomads are employees or self-employed workers with profiles such as software developers, data engineers, content creators, technology consultants, etc.

Also, the Law does not require a nomad to be employed by an Andorran company, so he can be an employee of foreign companies or even a freelancer or contractor.

What is the visa for digital nomads in Andorra?

The Andorra Digital Nomad Visa is a new residence permit, in addition to the existing active and passive residence permits, designed for foreign nationals who:

• Conduct all your work using telecommunications and technological means (computer, online communication, social networks, etc.);
• Do not require a specific geographic location to perform their work;
• Provide services to individuals or legal entities not residing in the Principality of Andorra.

What are the requirements to obtain a digital nomad visa in Andorra?

To obtain a digital nomad residence permit, it is important to take into account that approval from the Andorran government is required, which aims to promote the digital economy in Andorra by accepting these new residents.

In particular, it is still unclear whether the work carried out by the applicant is related to the contribution to the development of the digital economy, entrepreneurship or innovation in the Principality of Andorra, but the statutory requirements will be explained below.

To be eligible for this visa, you must meet the following requirements:

• Obtain approval from the Ministry of Economy: You must obtain a positive decision from the ministry responsible for the economy that recognizes you as a person working remotely using telecommunications and technology.
• Submit an application for a residence permit, duly completed and accepted by the government.
• Provide a certificate of no criminal record under oath.
• Have sufficient financial means: you must demonstrate that you have the necessary financial means to live in Andorra for the duration of your visa. Specific information on how much you need will be set out in regulations.
• Provide evidence that you own or rent a home that meets the minimum conditions of habitability required by law.
• Provide a commitment to actually reside in Andorra for at least 90 days per calendar year.
• Substantiate and have in force the applicant’s insurance coverage and health and disability insurance.
• Undergo a medical examination in Andorra.

How to get approval from the Ministry of Economy for a digital nomad visa?

The most important, if not the most important, requirement is to obtain a positive decision from the ministry responsible for the economy in order to be considered a person who does not require a specific geographical location to carry out his work and who uses telecommunications and technology.

To do this, the digital nomad must provide all documents and information in accordance with the Digital Economy Regulation adopted in furtherance of Decree 212/2023 of 10 May 2023. In particular, the following documentation is requested from the applicant:

• Passport or identity card of the applicant.
• A sworn statement that the applicant does not require a specific geographic location to perform his/her job and that he/she uses telecommunications and technology — describing his/her job as best as possible.
• Any other document deemed appropriate to support the application, such as certificates from employers or companies confirming that the employee or freelancer can perform their work using telematics.

Obtaining permission is of fundamental importance and in our experience is not easy to obtain, so it is very important to pay close attention to the content of the documents. We strongly recommend that you get professional help in preparing this documentation.

What are the benefits of a digital nomad visa?

Over the last decade, Andorra has attracted thousands of entrepreneurs, digital nomads and businessmen who were forced to comply with a number of rather strict and not very flexible entry and residence requirements (commitment to invest, deposit in AFA, contributions to CASS, residence for more than 183 days, etc.).

This new type of permit offers a much easier and more flexible way to enter the country for the following reasons:

• The digital nomad does not make a deposit of €50,000 to the Andorran financial authority (which is mandatory for active residence entrepreneurs and passive residence investors).
• There is no need to register a company to be a tax resident.
• There is no obligation to pay CASS (social security), but you will have to pay for life insurance.
• The minimum number of days of stay required by the Andorran authorities is 90 days.
• It is possible to be a tax resident of Andorra if a digital nomad meets the requirements set out in the Personal Income Tax Act.

How to take the first step?

Andorra is positioning itself as the perfect 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 is waiting for you!

If you are interested in changing your tax residency to Andorra through a digital nomad visa, we recommend that you read the Top 3 Tax Destinations report, which provides the most comprehensive information on taxation, residency and residency requirements in Andorra.

With the recent boom of YouTubers moving to the Principality, dozens of fraudulent consultant websites have emerged offering services for living in Andorra, but they do not carry out the appropriate legal and tax analysis.

It is important to emphasize the importance of good advice: we have encountered many clients who chose unqualified consultants to set up their company and ended up facing serious problems with the tax administration of their country of origin.

At Relocate&Save we guarantee maximum strictness when changing tax residency.