How to Obtain Digital Nomads Visa in Andorra 

Andorra has become a popular destination for digital nomads due to its favorable tax system, stunning landscapes, and high quality of life. If you’re considering relocating to Andorra as a digital nomad, it’s essential to understand how to obtain residency and what taxes you need to pay. Andorra offers various types of residency permits, and understanding the right one for your situation is crucial for smooth relocation.

Visa for Digital Nomads in Andorra

To live in Andorra as a digital nomad, you can apply for active residency, which allows you to live and work in the country. However, you must meet certain criteria to qualify, including having a steady income, proof of work that can be done remotely, and fulfilling the minimum residency requirements.

Steps to Obtain Visa as a Digital Nomad:

1. Meet the Financial Requirements: You need to prove that you have sufficient financial means to support yourself while living in Andorra. This typically includes showing proof of income from your freelance or remote work. The minimum income threshold is usually between €40,000 to €50,000 per year.
2. Health Insurance: All residents of Andorra must have health insurance. As a digital nomad, you will need to register for the Andorran social security system (CASS) or obtain private health insurance that complies with Andorra’s regulations.
3. Apply for Active Residency: Submit your application for active residency with the Andorran Immigration Service. You will need to provide documents such as proof of income, health insurance, a clean criminal record, and evidence that you intend to reside in the country for at least 90 days per year.
4. Establish a Local Address: You will need to have a residence address in Andorra, which can be a rental property or owned property. The authorities will require proof of address before granting residency.
5. Residency Fee: There are application fees associated with residency, which may vary based on your situation (such as whether you apply for active or passive residency).

Once granted, active residency allows you to live in Andorra while working remotely. However, to maintain your residency status, you must meet the minimum stay requirement (spending at least 90 days per year in Andorra).

Taxes for Digital Nomads in Andorra

Andorra’s tax regime is one of the most attractive in Europe, with low tax rates that benefit digital nomads. However, there are a few key taxes that you need to be aware of:

1. Personal Income Tax: The personal income tax rate for individuals in Andorra is low, ranging from 0% to 10%. This makes Andorra an ideal destination for digital nomads seeking to optimize their tax liabilities.As a digital nomad, the taxable income includes your global earnings. However, because Andorra offers one of the lowest personal income tax rates in Europe, this can represent significant tax savings compared to other countries.
2. Social Security Contributions: Digital nomads who are self-employed must contribute to the Andorran social security system (CASS). The contribution rate depends on your income and type of employment (self-employed or employed). Contributions are mandatory for active residents, including digital nomads.As a self-employed individual, you will be required to contribute both as an employee and employer, but overall, these rates remain very competitive compared to other countries.
3. Value Added Tax (VAT): Andorra has one of the lowest VAT rates in Europe at 4.5%, significantly lower than in neighboring countries like France and Spain. This rate applies to most goods and services.
4. Other Taxes:
   • Wealth Tax: Andorra does not have a wealth tax, making it especially attractive for digital nomads who hold significant assets.
   • Capital Gains Tax: There is also no capital gains tax in Andorra for individuals, which can be a significant advantage for those involved in investments or selling assets.

How Axior Global Can Help

Axior Global offers specialized tax advisory and registration services for digital nomads looking to establish residency in Andorra. Whether you are seeking to understand the tax implications of your remote work or need assistance with your residency application, we can guide you through every step.

Our services include:

• Residency Application Support: Helping you navigate the application process for active residency, including gathering the necessary documentation.
• Tax Optimization: Advising on how to optimize your tax situation, ensuring you benefit from Andorra’s low personal income tax rates and avoid unnecessary liabilities.
• Social Security Registration: Assisting you with CASS registration to ensure your contributions are compliant.
• Ongoing Tax Planning: Providing ongoing tax planning and compliance services to help you stay on top of any changes to Andorra’s tax laws.

Our experts will help you with registration and tax planning to make the transition to Andorra as a digital nomad seamless, efficient, and cost-effective.