Andorra has become the hub for digital nomads

But the reality is that moving to Andorra is only the first step.

Many professionals who decide to set up here to open a company, operate from abroad or invoice their services from a more favourable environment discover, once here, that they don’t just need a fiscal address but a real, well-run management structure.

1. Why is Andorra attracting more and more digital nomads?

The reasons are diverse but converge:

• Competitive taxation: maximum personal income tax (IRPF) of 10 %, no wealth or inheritance tax.

• Reasonable cost of living compared to other high-tax countries.

• Public safety and political stability.

• High digital connectivity: fibre optic coverage across 100 % of the territory.

• Proximity to Barcelona and Toulouse.

• Quality of life: clean air, natural surroundings, high-quality services.

• And most importantly for many: peace of mind to work and live freely.

This combination has made Andorra a destination for startup founders, programmers, e-commerce specialists, creative freelancers, international consultants and crypto investors.

2. But… what happens after “making the leap”?

Once they obtain tax residency and set up a company, many face an unanticipated reality:

• They must maintain accounting according to the Andorran General Accounting Plan.

• They must file quarterly and annual tax returns (IGI, IS, IRPF...).

• They must manage payroll and social security contributions (if they hire staff or are self-employed).

• And they must avoid tax risks both in Andorra and in their country of origin.

This is where professional support becomes essential. The “easy life” in Andorra is only real if you have solid management on your side.

3. The most common mistakes we see

• Not carrying out accounting management in accordance with Andorran regulations.

• Delaying tax filings or submitting them with errors.

• Hiring workers without complying with all labor requirements.

• Not having a clear company structure (LLC vs. individual activity).

• Failing to correctly declare income earned outside Andorra.

All these mistakes can lead to penalties, inspections or loss of tax benefits. They also generate stress and uncertainty —exactly what many wanted to avoid by moving to Andorra.

4. What does a well-structured accounting, tax and HR service provide?

• Up-to-date accounting supervised in accordance with Andorran regulations.

• Annual tax planning to legally optimise taxes.

• Timely and accurate submission of all filings.

• Payroll, contracts and social security management (CASS).

• Coordination with local institutions to ensure compliance.

• Knowledge of double taxation treaties and cross-border risks.

Professional management not only ensures legal compliance: it protects your business activity, avoids unnecessary costs and gives solidity to projects with a long-term vision.

With a solid structure, a digital company established in Andorra can grow with stability and confidence. The country offers an excellent framework for living and working, but it’s the efficiency of day-to-day management that ultimately makes the difference.

For more information contact info@psf.ad or fill out the form here