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Why did Spanish esports, Youtuber influencers move to Andorra? Low tax? Think again

Contributed by Andorra Solutions
15 February, 2021


Since January 2021, Andorra has received increased Spanish and French media coverage. The reason? From these countries young entrepreneurial YouTuber, influencer and eGaming talent changed their residence to Andorra. The alleged sole reason for their moving has been the principality's low taxation. Lifestyle, safety and discretion are the silent benefits overlooked by the press.

Andorra has been attracting late teenage to twenty-something eGaming and other influencers as early as 2017. Spain's biggest eGaming personalities David "TheGrefg" Martinez and others recently set up residency in Andorra in 2019. Low taxation purposes were alleged to have influenced their move to Andorra. Later it was alleged this created an exodus of Spanish eGamers, YouTubers and influencers.

Is Andorra, a low tax jurisdiction a convenient a reason for the move? We believe so. There are other reasons more likely to have influenced their new residency too. Let us consider with more tax aggressive jurisdictions worldwide. So why was Andorra selected and not another?

To answer this the principality's has less talked about benefits. These include its ease of integration, similar culture and lifestyle with familiar surroundings for French and Spanish nationals. Other factors include its increased safety and discretion vs. their country of birth.

Let us explore the Andorra's economic, lifestyle, safety and discretion benefits in more depth. This will explain why Spanish and French eGamers, YouTubers and influencers consider Andorra because of the sum of its benefits, not a part.

Economic

Andorra's corporate and personal tax rates verses their country of birth for French and Spanish eGamers would be considerably lower.

Andorra has maximum corporate tax rate of 10%. Resident company shareholders do not pay tax on capital income. Personal income tax is 10% maximum on any salary. Spain's corporate income rate of 25%: Spain's personal income tax rate up to 55%.

Unlike France and Spain, Andorra has zero inheritance or real estate taxes.

Lifestyle

For Spanish, French and Catalan speakers there are neither language nor cultural barriers to their own. In the principality, all three languages are spoken.

Setting oneself up in the community does require know-how, but day-to-day activities, interactions and accustomisation is smooth.

The food is an extension of traditional Mediterranean cuisines. Housing quality is exceptionally high with similar distribution and types to those found in Spain.

Safety

Compared to living in eGaming Hubs in Spain's Barcelona and Madrid there is no comparison in personal safety. The principality has a one of the lowest crime rates in the world.

Discretion

The big decision to relocate to Andorra as a celebrity is the capacity to enjoy the simple but priceless things in life not enjoyed elsewhere. These include activities walking pets, going to the shop for snacks and enjoying quality time outside the house. A life without interruption is a major benefit.

Conclusion

The press have concentrated that Andorra is a low tax jurisdiction. While it is true that Andorra does have lower personal and corporate taxes than France or Spain there are more tax aggressive locations than Andorra. We discussed that eGamers, Influencers, YouTube and content creator celebrities moved the principality for the sum of its benefits.

These benefits include a smooth familiar lifestyle transition in a discreet environment. It offers residents peace of mind in a safer and securer environment than eGaming hubs of their nationality. These benefits sound mundane. For a young celebrity generation they are priceless.



Tags: Expats | Andorra | offshore | tax


 


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