Category B (Digital Entrenepreur)
Digital Nomad / Entrepreneur Category – TWO new categories, Active company (recommended), and passive freelance (not recommended)
Another first for J W Serveis as the first ever application for residency at Immigration with bond exemption in the "digital economy" process is approved. It is to be stressed that this is a company exemption where the applicant director (s) remain as active Category D compte propi. To date and to my knowledge there has not yet been application lodged for freelance digital and that has been classed as a passive category, and for this reason I do not recommend the freelance route nor am I putting forward any applications for freelance simply because it is too complicated to be classed as passive.
There are agents/companies/lawyers out there that may well offer guidance for applications, but in my extensive Immigration experiences with passive applications and renewals, it is a non starter for me.
SO, I will only consider and advise on the company route with bond exemption which will mean being an active resident and which is far easier.
The new law designed to attract digital "nomads" whom I will refer to as entrepreneurs in the digital sector is now open for applications as far as immigration is concerned. In order to apply for the relevant residency permit as outlined below, approval must first be sought by the Ministry of the economy by formal application before any residency application to immigration. Approval by the Ministry of the Economy means that you or your company are exempt from paying the 50,000 EUR bond/deposit to Immigration, but it isn´t going to be easy in the freelance (passive) route.
In summary the new law provides for the following: –
For the digital entrepreneur the two routes are either via forming a company and then applying for exemption from the EUR 50,000 bond/deposit, or by applying as an individual either to work as an individual or to work for an existing company based outside Andorra with the same exemption from the bond/deposit.
- Company formation. (Quota of 50 places allocated). (Correction there is NO specific quota required nor allocated). This is the recommended route of active category D as mentioned above. It allows an Andorran company to apply to the Ministry of the economy to apply for exemption from the existing EUR 50,000 bond for active residency. Formal approval is required in advance of an application to immigration that the activities of the company satisfy the requirements of the Ministry of the exterior and importantly that the activities will benefit the development of the digital sector in Andorra. What this means is that at the time that the company formation is complete, the application can then be made to the Ministry of the economy and if approved they can issue a certificate which will then be presented to the immigration Department to exempt them from paying the bond. BUT, all of the company formation and local trading license must be applied for and approved before the step of going to the Ministry of the economy and before any application is made to immigration for residency in the active residency Category D route (Compte Propi).
- Liberal (Digital) professional. (Quota of 50 places allocated) . This is the passive route which I am not advising on due to the complications as mentioned below. It allows an individual to apply to the Ministry of the economy for approval to reside and work in Andorra as a self-employed entrepreneur., or as an employee of an existing company who can work from anywhere digitally. In effect what this is doing is extending the existing type of category of "liberal professional"which has been in existence since 2012 and has related to areas such as the medical sector where reciprocal arrangements required to be proven to allow that person to operate in his profession in Andorra. This simply extends the liberal professional category to the digital sector. For an individual to apply, he or she will first need to complete the application forms together with (very) persuasive supporting documents as to how or she is qualified in the digital sector and importantly how his or her approval would benefit the digital sector in Andorra. This approval will then be part of the application papers to immigration for an application under the passive residency that I refer to as category B – digital nomad, please note that this is a passive resident category and there have been inherent problems with the existing category B (company formation) and for which I can only advise caution especially when it comes to times of renewal. The actual word "Nomad" seems to have been misunderstood and as a freelancer you will require for the duration of your residency a fixed and unique address, annual proof of income, private (3 types) of medical insurance for the duration amongst other requirements. No-one in Government has yet considered renewals, the meaning of passive is that you are not allowed to work or receive income in Andorra !! This category will obviously be an exception to that rule but what will need to be proven at renewals is very sadly unknown.
Under current immigration procedures the category of company formation (Compte Propi) is classified as an active category. It is now resolved that with company exemption you will be processed as usual but exempt from paying the 50,000 bond if you have the correct approval from the Ministry of the Economy. This active classification has many advantages especially when it comes to renewals. Please now refer to the requirements for Category D.
For those "freelance" entrepreneur applicants who succeed in applying to the Ministry of the Economy for approval in the digital category of liberal professional (freelance/digital entrepreneur/nomad), they will then be processed as passive residents as in Category B, and for which I am not offering my services as explained above.