Andorra does have a digital nomad residence permit, created by the 2022 Digital Economy Law and issued since 2023. But the annual quota is small — 50 permits, extendable toward a shared ceiling of 100 with the entrepreneurship programme — and every application needs discretionary approval from the Ministry of Economy first. For most remote workers with a real business, active residency through an Andorran company is faster, more certain and often more tax-efficient.

What the permit is

Law 42/2022 on the Digital Economy, Entrepreneurship and Innovation created a residence category for a “digital nomad” — defined as someone who is not tied to a location and works, using technology, for companies or clients outside Andorra. It lets you live in Andorra while your income comes from abroad, without forming an Andorran company.

Broad requirements

• Proof that your work is genuinely remote and for non-Andorran clients or employers.
• Evidence of stable income from that activity.
• The standard residency documents: clean criminal record, medical certificate, private health insurance, proof of accommodation.
• The non-refundable €50,000 contribution to the AFA (unless your activity qualifies for the digital-economy exemption).
• Prior approval from the Ministry of Economy before the immigration application.

Why it’s barely used

• The quota. Around 50 digital-nomad permits a year, with a combined cap of 100 shared with the entrepreneurship route. That is tiny.
• The discretionary gate. The Ministry of Economy pre-approval is not a formality — well-qualified applicants have been refused, and the process is described as slow and unpredictable.
• Slow implementation. The procedure took time to bed in after 2023 and remains less well-trodden than the two main routes.

The alternative: active residency

Most people who research the digital nomad visa end up on active residency instead: you form an Andorran company (holding >34%, as director) that invoices your international clients. It has no quota, a clear process, and a better tax outcome — company profit taxed at 10%, dividends to you tax-free, a combined 10% ceiling. The trade-off is the company setup cost (~€7,000), CASS (~€500/month) and the 183-day presence requirement versus the nomad permit’s lighter footprint.

Who the nomad permit does suit

It can make sense for a salaried remote employee with no business of their own, a modest structure, and patience for the queue — someone who genuinely cannot or does not want to run an Andorran company. For everyone else, treat it as a niche option, not the headline route.

Frequently asked questions

Does Andorra have a digital nomad visa?

Yes, created by Law 42/2022 and issued since 2023 — but with a small annual quota (around 50) and a discretionary Ministry of Economy approval step.

How many Andorra digital nomad visas are issued each year?

Around 50, with a combined ceiling of 100 shared with the entrepreneurship programme.

Is the digital nomad visa better than active residency for remote workers?

Usually not. Active residency through an Andorran company has no quota, a more certain process and a better tax outcome. The nomad permit suits people who cannot or will not run a company.

Do I still pay the €50,000 AFA contribution on the digital nomad visa?

Generally yes, unless your activity qualifies for the digital-economy exemption.

Last reviewed: 3 September 2026. General information, not legal advice; quotas and procedures for this permit change and this page may become out of date. Speak to our team.