Digital Nomad Residence in Andorra: Requirements, Costs and Tax Benefits

The landscape for obtaining residence in Andorra changed significantly in 2026. With the introduction of Law 2/2026, widely known as Òmnibus 2, the €50,000 deposit previously required from self-employed residents and passive residents ceased to be a refundable security deposit and became a permanent, non-refundable contribution. In the case of passive residence permits, a further non-refundable contribution of €12,000 is required for each dependent family member.

Against this backdrop, the Digital Nomad Residence Permit (D.3), created under Law 42/2022 on the Digital Economy, Entrepreneurship and Innovation, has retained its most attractive feature: applicants remain exempt from the €50,000 contribution.

For internationally mobile professionals, remote executives, consultants and entrepreneurs whose income is generated abroad, this route has become one of the most cost-effective ways to establish residence in the Principality. This article examines who qualifies, what the authorities require in 2026, the costs involved and the potential pitfalls that applicants should anticipate.

What Changed Under Law 2/2026?
Approved by the Consell General on 22 January 2026 and in force since 13 February, Law 2/2026 reflects a strategic shift in Andorra’s immigration policy. The government’s objective is to move away from population growth driven by volume and towards a more selective model focused on attracting talent and protecting housing availability and public services.

The reform introduced three major changes:

The €50,000 contribution payable to the Andorran Financial Authority (AFA) became non-refundable, except where an initial application is refused.

The minimum investment required for passive residence increased to €1,000,000 in Andorran assets, together with a further €12,000 non-refundable contribution for each dependent.

Applicants establishing a company must demonstrate a meaningful ownership stake, genuine management responsibilities and real economic activity.

Importantly, the law specifically excludes projects relating to the digital economy, innovation and entrepreneurship that have received a favourable assessment from the Ministry of Economy. The Digital Nomad Residence Permit therefore represents a deliberate policy choice rather than a loophole in the legislation.

Who Can Apply for the Digital Nomad Residence Permit (D.3)?
Law 42/2022 defines a digital nomad as an individual whose professional activity does not depend on a specific geographical location and is carried out through information and communication technologies.

In practice, the Ministry of Economy generally accepts three categories of applicants:

Remote Employees: Professionals employed by a foreign company who are contractually authorised to work entirely remotely.

Independent Professionals: Consultants, software developers, designers, digital marketers, content creators and other freelancers whose clients are located outside Andorra.

Owners and Directors of Foreign Companies: Shareholders, directors or managers who oversee international businesses remotely from Andorra.

However, two issues frequently determine whether an application succeeds.

Firstly, the business activity must be genuinely international. Providing services to active Andorran clients may trigger a different residence regime and the associated €50,000 contribution.

Secondly, the permit is intended for economically active professionals. Individuals whose income derives primarily from dividends, investments, property rentals or the management of personal wealth are generally directed towards passive residence instead.

Application Process and Requirements in 2026
The application process consists of two stages involving two different government departments.

At stage one, applicants must submit:

• A sworn declaration.

• A technical report explaining their professional activity.

• Evidence of international clients or foreign employment.

• Details of the technological tools used to perform the work remotely.

Generic descriptions are routinely rejected. The Ministry expects a detailed explanation of the applicant’s business model, revenue sources and operational structure.

Only after obtaining a favourable decision may the applicant proceed to the second stage.

For stage two, the Immigration Department requires:

• A valid passport.

• Criminal record certificates from both the country of nationality and country of residence.

• Apostilles and sworn translations where applicable.

• Evidence of sufficient financial resources.

• Private health and disability insurance valid in Andorra.

• Proof of accommodation in the Principality, whether owned or rented.

• A commitment to reside in Andorra for at least 90 days per calendar year.

• A medical examination.

• Payment of the official government fee of €224.61.

The authorities have up to two months to issue a decision.

The initial authorisation is granted for two years. The first renewal extends the permit by a further two years, the second by three years and subsequent renewals are issued for ten-year periods.

In practice, the most common causes of delay are inadequate technical documentation, invalid apostilles and insurance policies that fail to meet Andorran requirements. Given the limited number of permits available, administrative errors can ultimately cost applicants an entire year.

Minimum Income Requirements, Quotas and Costs
Although digital nomads are exempt from the €50,000 contribution, they must still demonstrate sufficient financial means.

The authorities generally apply the same solvency criteria used for non-lucrative residence permits: 300% of the Andorran minimum wage for the main applicant and an additional 100% for each dependent.

Following the increase in the minimum wage to €1,568.67 per month in July 2026, the practical benchmarks are:

Single applicant: approximately €4,706 per month (€56,500 annually).

Applicant with one dependent: approximately €6,275 per month (€75,300 annually).

Applicant with two dependants: approximately €7,843 per month (€94,100 annually).

Compared with other residence routes, the cost differential is substantial.

A digital nomad can obtain residence by covering government fees, document legalisation costs and private insurance premiums.

By contrast:

Self-employed residents face a non-refundable €50,000 contribution.

Passive residents must maintain a qualifying investment of at least €1,000,000 and pay additional non-refundable contributions.

A further consideration is availability. Government quotas remain limited and have typically been capped at 100 permits annually, divided equally between digital nomads and entrepreneurial projects.

Tax Residence: Why 90 Days Is Not the Same as 183 Days

One of the most common misunderstandings among international applicants concerns the difference between immigration residence and tax residence.

Andorra’s tax system remains highly attractive. Personal income tax is capped at 10%, there is no wealth tax, no inheritance tax, corporate income tax is generally limited to 10%, and dividends paid by Andorran companies to resident shareholders are exempt.

However, holding a residence permit does not automatically make someone an Andorran tax resident.

The requirement to spend 90 days per year in Andorra is sufficient to maintain the immigration permit, but not necessarily to establish tax residence.

In most cases, individuals must:

Spend more than 183 days per calendar year in Andorra; or demonstrate that their centre of economic and personal interests is located in the Principality.

For British, Spanish and other international applicants, this distinction is critical.

Someone who spends only 90 days in Andorra while maintaining family, business operations and substantial economic ties elsewhere may remain tax resident in another jurisdiction.

In the case of Spain, the Double Taxation Agreement and domestic tax rules will often override immigration status, potentially resulting in worldwide income remaining subject to Spanish taxation.

Catalan Language, Family Reunification and Housing Considerations
Three additional aspects deserve attention.

Catalan language requirements: Under Law 6/2024 on the official language, residents will need to demonstrate: A1 Catalan proficiency at the first renewal, and A2 Catalan proficiency at the second renewal. Applicants arriving in 2026 should therefore expect to provide evidence of A1 level Catalan by 2028. The Government of Andorra offers free language courses to facilitate compliance.

Family reunification: Spouses and dependent children may apply for family reunification after three months of legal residence. Applicants must demonstrate additional income and provide accommodation that meets habitability standards.

Property ownership: The Law 2/2026 and Decree 58/2026 significantly increased the Foreign Real Estate Investment Tax.

The applicable rate is currently:

• 6% on a first residential property.

• 10% on additional properties.

The tax also applies to residents who have not yet completed three years of effective residence in Andorra.

For many newcomers, renting remains the most financially sensible solution during the initial years.

Advantages and Potential Drawbacks for Digital Professionals
Among the principal advantages of Andorra’s Digital Nomad Residence permit are:

• Exemption from the €50,000 non-refundable contribution and the absence of any minimum investment requirement.

• No obligation to contribute to the Andorran Social Security System (CASS), provided that adequate private health insurance is maintained.

• A minimum stay requirement of just 90 days per calendar year, making it the most flexible residence route available in Andorra.

• Family reunification after three months.

• Access, where a genuine tax relocation is achieved, to a highly competitive tax regime with a maximum income tax rate of 10%.

Potential drawbacks include:

• A demanding assessment process and limited annual quotas.

• A relatively high income threshold of approximately €56,500 per year for a single applicant.

• Restrictions on servicing Andorran clients under this specific regime.

• The frequent confusion between immigration and tax residence requirements.

• Catalan language obligations and potential property investment taxes during the early years of residence.

Why Professional Advice Matters
The introduction of Òmnibus 2 has permanently increased the cost of relocating to Andorra for entrepreneurs and passive investors while preserving a clear route for internationally mobile professionals and digital talent.

For consultants, software developers, remote executives and digital creators with stable international income streams, the D.3 Digital Nomad Residence Permit remains the most efficient route to establishing residence in the Principality, provided that the application is properly prepared, income can be clearly evidenced and the relocation is genuine.

That said, applicants should not underestimate the complexity of the process. The procedure involves two ministries, limited annual quotas and a regulatory framework that has undergone substantial changes in recent years. Attempting the process without specialist advice may result in the loss of both valuable time and a place within the available quota.

At Andorra Gestoria, we prepare the technical report and sworn declaration, legalise all supporting documentation, structure the client’s tax residency strategy in relation to their country of origin, and provide ongoing assistance throughout renewals and, where required, the incorporation of an Andorran company.

At Andorra Gestoria, we firmly believe that any decision involving residence and international taxation should be managed by experienced professionals specialising in immigration and cross-border tax planning, ensuring that our clients are protected at every stage of the process.

Contact us today and a member of our team will assess your circumstances and advise on the most suitable solution for your objectives, always under the strictest standards of professional confidentiality.