Digital Nomads in Andorra

The New Digital Economy: Before and After the Pandemic

Economic activities are increasingly prominent in the digital space. The pandemic that began in March 2020 marked a shift in the global paradigm of work and business. Companies and professionals changed their work habits, remote work became a widespread way of working and understanding human, business, and professional relationships from a digital perspective that allowed remote work or decentralized business operations. This reality is being embraced by more and more professionals and entrepreneurs who want to optimize their time and resources to create more value for their clients.

More than two years later, the cultural and digital transformation post-pandemic has persisted in a significant number of organizations worldwide, which have chosen to continue remote work, either in a fully remote manner or in a hybrid system combining remote and in-person work. Furthermore, the growing desire among workers for flexible hours or project-based work is giving rise to a new class of workers increasingly detached from the traditional notion that work is tied to an office.

In this context, digital nomads have come to stay. But who are they? Digital nomads are employees who carry out their work or provide their professional services completely remotely, without being tied to a physical office. They often go about their daily lives in different countries or cities, often choosing not to establish a fixed residence.

So, what can Andorra offer to these new entrepreneurs and workers? Let’s explore that below.

Andorra: A Paradise for Digital Nomads

The Principality of Andorra passed the Law on the Digital Economy, Entrepreneurship, and Innovation on December 22, 2022. This law provides for a series of immigration authorizations for digital nomads in Andorra, visas for entrepreneurs, and other immigration measures to promote the new digital economy that the Principality aims to enhance.

This law makes more flexible the criteria for granting non-resident work permits to individuals contributing to the development of the digital economy, innovation, and entrepreneurship in Andorra. It establishes more flexible, less expensive and more agile requirements for obtaining effective residency in the Principality of Andorra or measures to promote financing and investment in digital economy-related business initiatives.

The new law establishes a specific legal framework for startup companies to encourage their creation and ensure investor protection in these types of companies. It also sets up crowdfunding services (crowdfunding platforms) for businesses, with the aim of providing the Andorran business ecosystem, as well as activities related to the digital economy, with new funding opportunities to expand capital for their projects.

Additionally, this law creates controlled testing environments known as “Sandboxes,” where initiatives (products, services, and business models) and projects related to the digital economy or innovation can be tested safely. Furthermore, the law includes “living labs” or open innovation laboratories to promote, explore, and evaluate ideas, concepts, and products seeking synergies between public administration, research centers, businesses, and citizens to promote the new digital economy.

With this legislative advancement, Andorra positions itself as a paradise for digital nomads who will find a unique country with a high quality of life and advantages that few places in the world can offer.

Living in nature without giving up the amenities of a big city is what Andorra offers to these new digital citizens. All of this in a unique location in the heart of Europe, close to major cities like Barcelona or Toulouse, which allow you to connect by air to any part of the world. Andorra is one of the most advanced economies in Europe, with high-quality standards, a unique healthcare system, and an internationally recognized tax system, not only for its competitive taxation but also for having one of the most advanced digital administrations.

Furthermore, Andorra boasts one of the most advanced internet infrastructures in the world, ensuring access to professional fiber-optic internet anywhere in the country.

What does a digital nomad seek, and what can Andorra offer?

Andorra can offer the following unique aspects to digital nomads that they may not find elsewhere in the world:

1. Strategic location: Located less than 200 km from Barcelona or Toulouse, the Principality of Andorra’s position in the heart of Europe, between Spain and France, is unique, with its independent legal, economic and tax regime and high standards of living.
2. A comfortable, quiet workspace in nature: Andorra, with its 80,000 habitants nestled in the Pyrenees mountain range, surrounded by nature and ski resorts, provides the ideal environment for digital work that requires tranquility, space, and infrastructure.
3. High standards in technological infrastructure: Andorra has one of the fastest and most reliable internet connections in the world. The country recognizes the need for good Wi-Fi service, as it is crucial for any digital nomad to carry out their work with confidence and security. With a network of 79,000 kilometers of fiber optic cables across its 468 square kilometers of land, every permanent population center in Andorra has internet access and fiber optic connectivity, despite the dispersed population in small towns and the mountainous terrain with steep slopes.
4. Legal security for locating work or business: with sufficient present and future guarantees. Andorra is one of the oldest neutral states in Europe, in its present and past history has been neutral non-involved in any military conflicts throughout history. As a co-principality with the Bishop of Urgell and the President of the French Republic, it enjoys neutral power and permanent independent defense supported by two major European countries. The legal security based on the Andorran constitution, approved on February 2, 1993, with its institutions and co-principality, promoting values such as freedom, justice, democracy, and social progress based on mutual respect, coexistence, and peace, provides Andorra with the stability and security necessary for any investor.
5. A country with a recognized tax system and approvable for digital nomads: As mentioned throughout this article, with references to our website AndorraLive, Andorra is a privileged place to live. Its favorable and internationally recognized tax regime (with more than 10 double taxation treaties signed with major neighboring countries and over 25 information exchange agreements) characterizes Andorra as having an efficient, internationally recognized, and homologated tax system.
6. A multicultural country where many languages are spoken: Due to its unique characteristics and idiosyncrasy, Andorra is a country where many languages are spoken, and people from different parts of the world coexist. Although Catalan is the official language, Andorra’s residents commonly speak Catalan, Spanish, French, and often English. Additionally, there is a significant Portuguese population, making this language also common among its inhabitants. Therefore, Andorra is a privileged place for conducting business and interacting with the country’s residents in various languages.
7. Internationally recognized for ski resorts, a healthy lifestyle and sports: Sport is a key factor in Andorra, recognizing the country internationally as an ideal destination for sports. The country boasts one of the largest ski resorts in Europe (Grandvalira.com), with over 300 km of ski slopes covering most of the Andorran territory. Hiking, snowshoeing, cross-country skiing, or snow motorcycles complement a wide range of winter sports in Europe. In the warmer months, you can enjoy hiking, mountain biking, motor excursions, or golf, among others, making Andorra one of the most important tourist destinations with a summer offering as diverse as its winter offerings.

For all these reasons, Andorra is undoubtedly one of the most appealing countries of the present and future for digital nomads. Are you a digital nomad? Are you interested in settling in a country that can provide you with everything you need? Andorra is your best choice.