As is well known, many youtubers (now also streamers) and influencers, also called content creators, have moved their residence to the Principality of Andorra, mainly motivated by the fiscal attractiveness. As with all digital businesses, the possibility of performing the youtuber activity regardless of physical location or physical means to manage and process through customs, allows many professionals in the sector to come to live in Andorra, given the ease of the transfer.
In this way they carry out their work as content creators from home, their home in the Principality, moving only for events, extremely important meetings and events of that style. So they enjoy one of the most advanced and prosperous countries in the world, close to home and with very attractive taxes.
Taxes in Andorra for youtubers and streamers
The income obtained by youtubers (also streamers and influencers) in other countries such as Spain or France, as a general rule, are classified as income from economic activities, and are taxed at a personal income tax rate of 50%. In Andorra, the maximum tax on these incomes is 10%, the first € 24,000 being exempt and the following 5% taxed. In the end, adding up all the taxes, the effective rate is less than 10% of the total income obtained, with which the saving is important and significant and, undoubtedly, for certain volumes of income they motivate a change of residence.
Notwithstanding the foregoing, it is very important to highlight the convenience of analyzing in detail each specific case, since on some occasions, some content creators receive returns from foreign countries, image rights, copyrights, royalties ... Correctly determining all returns and analyzing the impact of a change of residence is essential. This fact is especially relevant when receiving income from the US or Germany, countries where tax deductions of around 30% are practiced. For this reason, it is essential not only to change residence to Andorra, but an appropriate one international tax planning.
Legal process and procedures
Practically all youtubers, streamers or influencers residing in Andorra invoice all their income through a sole proprietorship. Society is taxed by profit at a rate of 10%, aunque el porcentaje aplicado termina siendo menor por la posibilidad de retribuir al administrador con una asignación económica, que reduce el resultado. Además, the dividends that the company subsequently pays to the youtuber are completely exempt from the Andorran personal income tax, thus also guaranteeing for the part of the Corporation Tax the maximum rate of 10% on profits or income.
On the other hand, a part of the household costs, the salary of the cameras if any, and other costs can be computed as company expenses, thus further reducing the effective rate.
Guaranteed internet connection
For all digital businesses and especially in the case of content creators for working with a large volume of data due to the size of the video and direct files, a good and fast internet connection is vital. As we have mentioned for other types of Insiders, Andorra has full fiber optic coverage in 100% of homes, with which you can live in a completely isolated corner in the mountains and still have access to the network with the latest technology.
To give us an idea, the Principality already in 2013 became the first country in the world to have full fiber optic coverage at a speed of 100 Mbps, thus disconnecting ADSL throughout the country in 2014 and the copper network of telephony in 2016. Currently it has 700 symmetrical Internet Mbps for home for € 35 and up to 1 Gbps for business. You can see rates and more information on the company's own website, Andorra Telecom.
Great community and networking
Being a youtuber or streamer, with repercussion and generating significant income - or with the expectation of generating it -, Andorra also offers a very competitive fiscal environment where you can save during this stage, a very important community of youtubers, streamers and influencers, allowing collaboration in different projects together and being able to "network" with them. What better than being surrounded by professionals from the same sector to progress, advance and feel at home.
Among others, the cases of WillyRex, Vegetta777, Staxx, LoLitoFdez, TheGrefg, 8cho and Tri-line, Dalas and Lizy Po are famous for those of the famous ‘squad’ (byTarifa, byViruZz, Salva, LoganG, TheShooterCoc) as youtubers and streamers in Andorra, or recently ElmilloR, although obviously there are many more.
Become an Insider
En Andorra Insiders disponemos de los mejores profesionales y expertos fiscales, legales y contables, con una dilatada experiencia en perfiles de youtubers, streamers e influencers o creadores de contenido en general para garantizar el mejor asesoramiento en el cambio de residencia y coordinación de la actividad económica. Ofrecemos comprehensive support, from the first moment of contact to advice, information and guide after the establishment in Andorra. May contact us here.