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Telecommuting, working from home in Andorra

A VPN is an essential component of IT security, whether you're just starting a business or are already up and running. Most business interactions and transactions happen online and VPN

As we also explained in our article on digital nomads and e-residency, although teleworking already existed before 2020 it was usually the exception. In general, it was about distance work for freelancers and usually for certain professional activities in the field of technology that could carry out their work through the internet.

However, the pandemic caused by the covid-19 coronavirus and the confinements imposed worldwide in all countries has caused the temporary or permanent closure of practically all non-essential sectors of the economy. These businesses, and also the essential ones, to a greater or lesser extent have had to adapt and adjust their business models to new circumstances, thus promoting teleworking.

Delivery of food at home, orders and appointments online through web pages or WhatsApp, videoconferencing applications such as Skype or Zoom and buying through Amazon or other similar services have been the norm in these lavish months. The activities that were redundant in the workplace have been eliminated or reduced and it has also been seen that this increases economic performance, is not reduced: savings in money and time costs for offices, travel, etc.

And what does this have to do with Andorra? Well, it's very simple: as Andorra is a perfect destination for digital entrepreneurs, many people who previously found it difficult to settle in the country due to their labor ties, after the rise of telecommuting and the transformation of your job telecommuting you can easily do it. The result is an increase in requests for residence in the country, even more after trend caused by Rubius.

In addition, the decrease in income caused by the crisis has made businessmen seek optimize in the best possible way your business and its legal and administrative structure, and certainly Andorra does it among others for its attractive tax system. In this article we will explain the advantages of teleworking in Andorra, as well as the types of remote work that can be exercised.

Why work remotely in Andorra

  • The first advantage is obviously its low taxes compared to Spain or France. With an income tax of a maximum of 10%, a flat tax of 10% and a VAT ranging from 0% to 4.5%, the benefits in this regard are unquestionable.
  • Good connection to internet. To be able to work from home obviously requires a fairly stable internet, since the working day is carried out using this technology. With fiber optics in all homes and a mobile network covering the 98% of the territory, this requirement is met in Andorra.
  • Natural and mountainous place, quiet and perfect for practicing sport. With more than 95% of the territory being forest and a UNESCO World Heritage natural park, enjoying the mountains and nature in its maximum splendor while optimizing economic performance is possible.
  • Close location. If you are Spanish or French, just a few hours away by car you will be in your area or country of origin, and you will be able to travel from one place to another without much discomfort.
  • Globalist culture and close to Spain, France and Portugal. Andorra has always been a land of emigrants, especially from these three neighboring countries. Therefore this has resulted in a very friendly culture and institutions for people from these countries. From spoken languages to one's own education system.
  • Community of entrepreneurs and digital workers. Andorra has been becoming for a decade a destination for those who can work remotely anywhere. Thus, since youtubers and other content creators even programmers and designers, traders and other types of businesses make a very good ecosystem of networking with people with the same type of teleworking.

Who can telework in Andorra?

  • All those professionals and businesses related to the information technology sector: programmers of all kinds, computer and software engineers, specialists in cybersecurity or Cloud Computing, experts in new technologies such as big data, artificial intelligence (AI), blockchain and other systems. of distributed consensus, data scientists, computer systems analysts and a great etcetera.
  • All those professionals and businesses of design and digital marketing: graphic designers (digital), digital marketing experts, advertising agencies and corporate identity, SEO specialists and entrepreneurs, marketing and advertising managers, illustration agencies or freelancer illustrators, specialists in smart advertising platforms like Google Ads, etc.
  • All those professionals in finance, economy and digital investment: traders, brokers, financial advisors and consultants, capital managers (own or third parties), economists and accountants, professional investors of any investment philosophy, real estate agents and investors, cryptotraders or investors long-term in cryptocurrencies, etc.
  • Youtubers, streamers and other influencers.
  • Some communication professionals and businesses: journalists and communication professionals who work digitally, social media managers, community managers, copywriters or creators of written content either for web pages or others, translators and experts in local culture, assistants in writing, writing, proofreading and editing of books, etc.
  • Similarly, some administration and customer service professionals and businesses, as long as they can work totally or mostly virtually, such as salespeople, virtual assistants, project managers, administrators and Customer Service representatives, IT and technology consultants, intermediaries and commission agents of certain sales, etc.
  • Other different professionals whose activity is carried out virtually or can work remotely: professors from remote universities or online platform courses, architects who can telecommute, lawyers who can contact their clients virtually, etc.

Dual residency conflict and precautions

As we said in our article on withholdings and the Double Taxation Agreement between Spain and Andorra, despite the aforementioned we must be cautious and strict with national and international legislation regarding tax residence. More specifically to criteria established by the OECD to consider a person, natural or legal, tax resident in a country and therefore obliged to pay taxes in the relevant state.

In summary, we recall that main criteria were:

  1. Stay in the Principality of Andorra for a minimum of 183 days a year.
  2. Have a home or permanent establishment at your disposal in the country.
  3. Consideration of the center of economic interests and the center of vital interests of the person.

Thus, we must always keep in mind that, to settle in Andorra, a real and effective transfer must be carried out, not simulated. The person must move completely to the country and disassociate from the previous one as far as possible to avoid conflicts of this type. It is in the case of not being able to comply with the requirements and still want to pay taxes in Andorra while you are straddling this and another country when problems arise.

Thus, although the covid pandemic and teleworking have made it possible to expand the range of profiles that can consider Andorra as a good destination to settle and live, You must first reflect on the possibility of doing so while complying with the requirements and without exposing yourself to legal risks.. In this sense, having flexible hours and being able to work from anywhere in the world is key to deciding it.

6 thoughts on “Teletrabajo, trabajar desde casa en Andorra”

  1. Hello, I am a foreigner living in Spain, teleworking as an employee in a Software and Finance company crunches me as if there was no tomorrow since I immigrated to Spain. I have 3 children educated in Spain and I am seriously considering emigrating to Andorra (real, not simulated). My employer is an American company but he wanted to get me on the payroll and hired a company that is dedicated to hiring residents from all over the world with local companies (remote.com), so I work for Remote SRL in Spain but I think if I move to Andorra they could rehire me there or something like that. Can you give me your expert opinion? Thank you!

    Reply
    • Hi Damian, thank you very much for commenting. I regret your situation, but given the case the only option would be to establish a company in Andorra and change the relationship with your company from labor to commercial. In this way, you would invoice your company for the services performed and enter them into your Andorran society. If not, there is no way to obtain the Andorran residence permit.

      Reply
  2. Hello, I am Spanish and I am currently working as a programmer in Spain, if I wanted to move to Andorra but continue to work remotely in Spain, what options do I have and how much would it cost? Thank you

    Reply
    • Hi Pedro, thanks for commenting.

      Well unfortunately I would not have any option. If you want to telework, you have to telework in Andorra, not in Spain. You cannot reside in Spain and at the same time enjoy the advantages that Andorra offers to tax residents.

      Reply
  3. Good morning dear,

    I am Spanish and I work in the financial sector in Spain. With the arrival of telecommuting, I consider moving to Andorra, ask HR to change my tax residence so that I have 0 personal income tax withheld and pay it in Andorra.
    I understand that I could telework and pay taxes in Andorra (an employee for a Spanish company), paying taxes in Andorra, without major problems. Is that so?

    Thank you very much in advance.

    All the best,

    Reply
    • Hello Mauricio, thanks for commenting.

      Obviously not, it doesn't work like that. You cannot be an employee in Spain and reside in Andorra in any way. Not only could he not obtain a residence permit, but even if he did, he could not be a tax resident because he clearly has the center of economic interests in Spain.

      Reply

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Telecommuting, working from home in Andorra | Andorra Insiders

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Andorra Insiders is a professional legal, tax and accounting services platform, specialized in creating companies and establishing people in the Principality. 

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