Digital nomads in Andorra
by Josep Garcia
Andorra recently enacted a law on the digital economy, Entrepreneurship and innovation are paving the way for new types of immigration permits exclusively for “digital nomads”.
To that end, the government of the principality has amended its immigration law to create new work permits for people who currently have no residence in the country. The aim is to be able to employ foreigners who contribute to the development of the digital economy, as well as to entrepreneurship and innovation.
This new type of residence permit is intended for foreigners who do not require a specific geographical location as a place of work, and who use telecommunications and technology to perform their activities.
The law covers the following cases:
- Employees recruited by a company legally established in Andorra. Under the new regulations, the obligation to employ the worker at a salary higher than three times the minimum wage in force at the time of recruitment is abolished.
- The self-employed. The new regulation also makes the financial criteria more flexible; as long as the company is set up in Andorra to promote entrepreneurship, innovation, or the digital economy, it will not be necessary to deposit EUR 50,000 with the Andorran Financial Authority along with an application for immigration authorisation.
- Entrepreneur’s visa. There is now an entrepeneur’s visa available for foreign participants in the Foreign Entrepreneurs’ Programme promoted by the Ministry of the Economy of Andorra.
Important: Before a digital nomad is employed by a company located outside Andorra, it is essential for that company to consult a tax advisor in their own country to ensure that the classification of digital nomad is recognised in the country where the company is based.
Andorra’s Digital Economy Law was enacted on 01 December 2022 for the purpose of providing the necessary resources to stimulate and promote new business opportunities in the digital sphere. It also aims to create the right conditions for both local and foreign investors to boost their activities by establishing a solid, secure, and reliable legal framework.