The recent implementation of the Digital Economy, Entrepreneurship and Innovation Law opens the door to new business models to Andorra, both for residents and foreigners.
For the first time in the Principality of Andorra, special economic zones are regulated, start-ups, stock options and phantom shares, accelerators and incubators, coworking spaces, clusters, as well as other business figures that haven’t been recognized until now, such as teleworking, the digital nomad or participatory financing services in companies (crowdfunding), among others. These regulations have allowed Andorra to adapt to the new innovation and digital transformation models and have made the country more competitive at an international level, therefore, more attractive to entrepreneurs.
The new regulations have favoured the entry of entrepreneurs focusing on the promotion of digital economy, entrepreneurship or innovation. Once they have the authorization of the competent ministry, entrepreneurs do not have to meet the controversial demand of a € 50.000 deposit to the Andorran Financial Authority (AFA), although they must meet certain requirements, such as demonstrate they have sufficient economic means, insurance, proving they are owners or tenants of a property or that they will reside in the country for at least 90 days a year.
The new Law 42/2022, of December 1, introduces key agents within the entrepreneurial environment at a time when the digital era is internationally consolidated. This framework has regulated start-ups, emerging companies that, thanks to their use of technology, have great possibilities to grow, and has created new residence permits for digital nomad foreigners that use technology in order to carry out their work and do not require a specific geographical location. In the same way, but with some differences, there are also new residence permits for "foreign entrepreneurs", who are foreigners with a favourable resolution of the competent ministry to participate in the program for entrepreneurs.
This way, the country not only takes a step forward to promote the entry of entrepreneurs into the territory, but also promotes new opportunities for those promoting digital economy, entrepreneurship or innovation. With this legislative initiative, the Andorran Government seeks to favour competitive advantages and the development of the Andorran economy at a time when the country enjoys a consolidated ecosystem and a stable legal framework.
If you fulfil any of these entrepreneurship and innovation figures and you are interested in residing in Andorrra, at IS21 we can guide you in your future business project.