The figure of the digital nomad is that of a professional who works remotely without being confined to a specific geographic location, and it’s constantly growing. Seeing an increasing number of digital nomad profiles, Andorra has decided to attract them to its country by implementing a specific residency permit for this community. At the end of 2022, a law was passed to define the requirements and conditions to apply for this new Digital Nomad Residency Permit (Law 42/2022, dated December 1, on digital economy, entrepreneurship, and innovation).
When can one apply for a Digital Nomad Residency Permit in Andorra?
Although the law was published in December 2022, the permit for digital nomads in Andorra wasn’t available until mid-2023 because it lacked regulations to govern its implementation.
What is a digital nomad?
Legally, a digital nomad is defined as an individual whose work isn’t tied to a specific location and utilizes technology and telecommunications for their professional activities. Based on our experience, profiles meeting these criteria include content creators, entrepreneurs, consultants, and professionals hired by foreign companies.
What is the Digital Nomad Residency Permit in Andorra?
This permit is a new form of residency intended for individuals who carry out their work through technological means and telecommunications, without the need for a fixed geographical location, and provide services to clients established outside the Principality of Andorra.
What are the requirements to obtain the Digital Nomad Residency Permit in Andorra?
Obtaining this permit requires approval from the Andorran government. Although the exact criteria details aren’t completely defined yet, they aim for individuals promoting digital economy, entrepreneurship, or innovation in Andorra. Additionally, the following requirements must be met:
- Obtain a favorable resolution from the ministry responsible for the economy, acknowledging remote work through the use of telecommunications and technology.
- Criminal record certificate from the country of origin, nationality, and residence countries.
- Demonstrate sufficient financial means in accordance with regulatory requirements.
- Have a rental agreement or be a property owner in the Principality of Andorra.
- Commit to residing in Andorra for at least 90 days per year.
- Possess private medical insurance in Andorra.
Application with the Ministry in charge of Economy
One of the most critical steps, if not the most important, is obtaining a favorable resolution from the Ministry of Economy, to be considered a person not tied to any specific geographical location for work, utilizing telecommunications and new technologies.
To obtain a favorable resolution, the guidelines of the Digital Economy Regulation, according to Decree 212/2023 of May 10, 2023, must be followed. This will require:
- Personal documents such as a passport or ID.
- A sworn statement justifying remote work and its nature.
- Other documents supporting the application, such as employment contracts.
- Curriculum Vitae.
Without this favorable authorization, obtaining the digital nomad residency permit wouldn’t be possible. Hence, it’s crucial to gather all the necessary documentation and have the case well-assessed by professionals skilled in this field before submitting the application.
What are the benefits of the Digital Nomad Residency Permit in Andorra?
This new residency permit aims to simplify entry to Andorra for entrepreneurs and digital nomads. The main benefits include:
- No need to deposit €50,000, a requirement by the Andorran financial authority for new residents.
- No need for any corporate structure, although in some cases, creating a company might be more suitable.
- No mandatory contribution to the Andorran social security (CASS), although private medical insurance is required.
- Requirement to stay a minimum of 90 days in the Principality of Andorra.
- Possibility of becoming a tax resident if tax requirements in Andorra are met.
How can I obtain the digital nomad permit in Andorra?
Andorra stands out as an attractive destination for digital nomads, and as we’ve seen, the Andorran government is facilitating their establishment. With this permit, the country offers a unique opportunity for those seeking to balance work with a high quality of life. If you meet the requirements and seek a change, consider the Principality of Andorra as your next destination.
At Summit Advisors, we have a team of qualified professionals with experience in this field. So, if you’re interested, don’t hesitate to contact us. We guarantee maximum efficiency for your residency transfer.