Written and reviewed by the Axior Global Advisory Team — Andorra-based tax, corporate and residency advisors.
TL;DR: Andorra offers a dedicated digital nomad residence permit under Law 42/2022 (Digital Economy, Entrepreneurship and Innovation Law). It requires only 90 days of physical presence per year, no €1,000,000 investment (unlike passive residency), and gives access to Andorra’s 0–10% personal income tax. The catch: an annual quota of just 50 permits (up to 100 including the entrepreneurship programme), and the Ministry of Economy must issue a favourable resolution confirming your work is location-independent and technology-based.
What Is the Andorra Digital Nomad Permit?
It is a specific residence authorization created by Law 42/2022, of 1 December, on the digital economy, entrepreneurship and innovation, aimed at professionals who work remotely using telecommunications and technology, serving clients or companies outside Andorra, without needing a fixed geographic workplace.
Unlike Andorra’s classic residence routes, it was designed to attract location-independent talent: the physical presence requirement is only 90 days per calendar year — far below the 183 days of active residence — and it does not require the €1,000,000 investment of passive residency (raised from €600,000 by Law 2/2026, the Òmnibus 2 law, in force since 13 February 2026).
Key Facts Table
| Item | Digital Nomad Permit (2026) |
|---|---|
| Legal basis | Law 42/2022 (Digital Economy Law) |
| Minimum stay | 90 days per calendar year |
| Investment required | None (no €1,000,000 requirement) |
| Annual quota | 50 permits (+50 entrepreneurship programme; 100 total ceiling) |
| Approval body | Ministry in charge of the economy (favourable resolution required) |
| Initial duration | 2 years |
| Renewals | 2 years, then 3 years, then 10-year periods |
| Clients/employer | Must be non-resident in Andorra |
| Health insurance | Mandatory (full private coverage) |
| Housing | Rental contract or owned property in Andorra |
| Criminal record | Clean certificate required |
Who Qualifies as a Digital Nomad in Andorra?
You qualify if you can demonstrate that your professional activity does not require a specific geographical location and is carried out through telecommunications and technological means, for clients or entities not resident in Andorra. According to the framework of Law 42/2022, the Ministry responsible for the economy examines each application and must issue a favourable decision on precisely these two points.
Typical qualifying profiles include software developers, consultants, designers, traders, marketers and founders running online businesses serving foreign markets.
What Are the Requirements in 2026?
The requirements, as published on the Government of Andorra’s electronic procedures portal (e-tramits, procedure D.3 “Residència per a nòmada digital”), are:
- Favourable resolution from the Ministry of Economy confirming the location-independent, technology-based nature of your work.
- Sufficient financial means for you and your dependants for the duration of the permit, from income generated outside Andorra (assessed in practice by reference to the Andorran minimum wage — €1,568.67/month since 1 July 2026, after the extraordinary 2.8% increase approved by the Government).
- Comprehensive health insurance covering Andorra for you and your dependants.
- Housing in Andorra: a rental contract or property.
- Clean criminal record certificate from your countries of residence.
- Commitment to reside in Andorra at least 90 days per calendar year.
Self-employed applicants whose activity promotes the digital economy, entrepreneurship or innovation may benefit from exemptions from the standard financial deposit requirements under Law 42/2022 — this is assessed case by case, so professional advice before applying is strongly recommended.
How Much Does It Cost?
There is no investment threshold: this is the fundamental difference with passive residency, which since Law 2/2026 requires €1,000,000 (or €400,000 via the Housing Fund) plus a non-refundable €50,000 state contribution. A digital nomad applicant’s real costs are immigration fees, health insurance, housing, and professional/administrative fees — typically a few thousand euros in total, not hundreds of thousands.
How Long Does the Permit Last?
The initial permit is granted for 2 years. The first renewal adds 2 more years, the second renewal 3 years, and subsequent renewals are granted for 10-year periods — a stable long-term horizon once you are established.
What Taxes Will You Pay as a Digital Nomad in Andorra?
If you become an Andorran tax resident (which generally happens if Andorra is your main base — see our guide to the 183-day rule and tax residency criteria), you access one of Europe’s most competitive systems, per the Andorran tax laws consolidated on the Portal Jurídic:
- Personal income tax (IRPF): 0% on the first €24,000, 5% up to €40,000, 10% above (Law 5/2014).
- Corporate tax: 10% flat if you operate through an Andorran company (Law 95/2010) — see our company formation guide.
- IGI (VAT equivalent): 4.5%, Europe’s lowest standard rate.
- 0% wealth tax, 0% inheritance and gift tax, 0% exit tax, and 0% capital gains on most securities after the holding rules.
- 22 double tax treaties in force (Spain, France, Portugal, Luxembourg, UAE, Estonia and more), with Austria and Bulgaria signed in 2026 and pending entry into force.
Important nuance: with only 90 days of mandatory presence, you are permitted to reside in Andorra — but tax residency depends on your overall circumstances (days spent, centre of economic interests, family ties). Spending fewer than 183 days in Andorra while spending more in another country may leave you tax-resident elsewhere. This is where structuring matters most, and where mistakes are expensive.
How Does It Compare With Andorra’s Other Residence Routes?
- Passive residency: €1,000,000 investment + €50,000 non-refundable fee, 90-day stay — designed for retirees and investors, not workers. (Full 2026 breakdown)
- Active residency (self-employed): requires an Andorran company and 183+ days of effective residence — the standard route for entrepreneurs relocating fully.
- Digital nomad permit: no investment, 90-day minimum, but quota-limited and subject to ministerial approval of your remote-work profile.
FAQ
Is there really no investment requirement?
Correct — Law 42/2022 does not impose the €1,000,000 passive-residency investment. You must simply prove sufficient means, housing and insurance.
How many permits are available?
50 per year for digital nomads, plus 50 for the Ministry’s entrepreneurship programme. If the nomad quota is exhausted, applications can still be approved up to the combined ceiling of 100.
Can my family join me?
Yes — dependants can be included, provided you show sufficient financial means and health coverage for them.
Can I work for Andorran clients?
No. The permit is defined by serving clients or entities not resident in Andorra. Serving the local market requires an active residence and work authorization instead.
Do I automatically become an Andorran tax resident?
No. The permit grants the right to reside; tax residency follows the general criteria (days of presence, economic and family centre). Many nomads deliberately structure their year to become Andorran tax residents — done properly, this is entirely legitimate under the 22-treaty network.
What happens after the 2 initial years?
Renewals of 2, then 3, then 10 years, provided you continue meeting the requirements.
Sources
- Llei 42/2022, de l’1 de desembre, de l’economia digital, l’emprenedoria i la innovació — Portal Jurídic del Principat d’Andorra: https://www.portaljuridic.ad
- Butlletí Oficial del Principat d’Andorra (BOPA): https://www.bopa.ad
- Govern d’Andorra — Seu Electrònica, tràmit D.3 “Residència per a nòmada digital”: https://www.e-tramits.ad/tramits/ca/d3-residencia-per-a-nomada-digital/p/GV001311
- Llei 2/2026 (Llei Òmnibus 2) — thresholds for passive residency, BOPA 12 February 2026: https://www.bopa.ad
- Govern d’Andorra — Immigració, normativa: https://www.govern.ad/ca/tematiques/immigracio/normativa-i-legislacio
Considering the digital nomad route? Axior Global handles the full application — ministerial file, immigration, housing and tax structuring. Book a free consultation.