It is a fact that influencers and youtubers have started to move to the Andorran neighboring country. This has become his refuge to solve his fiscal problems, since in Spain the self-employed quota is becoming more and more unsustainable.
This is not the first time this has happened in history, for a while we saw how Spanish entrepreneurs came to the Principality to move their projects forward because the country began to create a very competitive fiscal framework.
Both Europeans and Spaniards have set their sights on the Principality and this latest case concerning content creators is one of the ones that has started to make the most noise. This leads us from Wit to discuss and analyze why content creators prefer Andorra and its taxation. Read on and don’t miss out on this topical post.
What taxes does a content creator pay in Spain?
The first step to understand why content creators are moving to Andorra is to see how Spain treats them in terms of taxation.
The truth is that the same taxes are paid in both countries, but to a lesser extent in the Principality.
A youtuber in Spain pays, in a generic way, a corporate income tax if he/she has a company, with a rate of 25%. In addition, the distribution of dividends from this account is taxed at a rate of between 19% and 21%.
On the other hand, we find the Personal Income Tax (IRPF) which, although it depends on each autonomous community, the data show that it can be approximately 47%.
In addition, there is theself-employment fee , which varies in a wide range from 294 € to 1,266.66 €. These figures continue to rise in 2023 and are far removed from Andorran taxation.
It should also be noted that Andorra’s social security contribution remains stable with respect to the maximum contribution, while the Spanish amount rises by more than €1,200 per month.
How much does a content creator pay in Andorra?
Like other entrepreneurs, youtubers and influencers who pack their bags to Andorra face the following taxes.
- Corporate income tax, which reaches a maximum of 10% independently of the income generated.
- The General Indirect Tax, or as it is more commonly known as VAT, has a maximum rate of 4.5%.
- With respect to personal income tax, the maximum tax rate is 10%. However, the first €24,000 is exempt. The rest of the profits, when they reach 40,000 €, pay 5% and from this figure, 10% is applied on the profits.
On the other hand, the self-employed quota in the Principality is much simpler and more affordable than in Spain. This amounts to a total of €474.85.
In addition, it should be noted that depending on what the company generates, 25%, 50% or a maximum of 137.5% of the quota may be paid.
Requirements to work as a content creator from Andorra
Andorra’s tax advantages are indisputable and this, coupled with its natural environment, we are not surprised that many youtubers and influencers choose the country as their new tax residence.
You are interested: What do I need to have my tax residence in Andorra?
One of the types of residence that the principality offers is the ideal way for them to enjoy all the advantages of Andorra. This is a passive residency for professionals with international projection with the following requirements:
- This type of residence is designed for professionals who do not have Andorran nationality, but have their main residence in the Principality. To do so, you must live there for at least 90 days during an entire year.
- On the other hand, you must carry out your professional activity in the country, either individually or by hiring a maximum of one person.
- The services provided do not have to be directed only to Andorra. 85% of these must be for non-residents, since we are talking about professionals with international projection. This means that only 15% of its business has to be oriented towards the Principality.
- The economic capacity to subsist in the country must be demonstrated for both the holder and his/her dependents.
- The professional must have a rental contract in the country or a document proving the purchase of a property.
- Finally, a 50 thousand euro bond must be deposited with the Andorran Financial Authority (AFA). If you have another dependant, an additional 10,000 euros must be added to this bond.
Many content creators have already seen the country as the perfect place to continue developing their professional activity. The controversy is served, but the tax advantages and all that Andorra can offer us is indisputable.
If you are one of those who want to take advantage of these benefits and want to follow the example of these content creators, Wit can help you make the whole process easy.
Keep building your future, Andorra is waiting for you.
