Tax benefits: YouTubers in the Principality of Andorra

Why do YouTubers want to live in the Principality of Andorra?

One of the main reasons for coming is undoubtedly the considerable tax reduction that Andorra offers, that is, a lower tax burden that allows them to keep more of their income than in their country of origin. But, in addition to the country's tax advantages, Andorra also offers a very attractive quality of life for YouTubers. Andorran public health is one of the best valued in the world. Without forgetting the landscape: the country only has 10 % of urbanized land, the rest is natural environment.

What does a youtuber have to do to come and live in the Principality?

The first thing you have to do is process the residence permit. There are two types: active and passive residence, also called fiscal residence. Youtubers in Andorra fall into the second case as they are considered professionals with international projection. They must establish their main residence in the Principality and live there for at least 90 calendar days per year.

They will also have to carry out their professional activity from the country. Or, in the case of applying for active residence, they have to spend 183 days in the country.

Are youtubers obliged to buy a home in Andorra?

There's no need. If they wish, they can rent a house. When obtaining residence, to justify that they are going to live in Andorra, they can present the rental contract of a house or apartment or the purchase document.

Is the tax savings that coming to Andorra represents really important? Is Andorra really a paradise for youtubers, entrepreneurs and elite athletes?

The country's tax burden is much lower than that of our neighbors. For example, the IRPF taxes a 10 % from €40,000 and it is only paid from €24,000. In addition, the section that goes from €24,000 to €40,000 is only subject to a 5 %. The VAT, which in Andorra is the IGI, is 4.5 %. The savings is significant.

Five key points in the demand for tax residence in Andorra

A economic scale:

• The law determines that you must have sufficient means to live in the country for the duration of your residence permit, which amounts to 300 % of the annual minimum wage.
• Make an unpaid deposit in the AFA of €50,000.
• YouTubers in Andorra must have a health insurance, with coverage in the country of residence, who is responsible for medical expenses.
• As I mentioned before, you will have to present a crental contract or purchase document of a residence and reside for a minimum of 90 calendar days.

Refering to business activity:

• Andorra has to be the venue for the activity.
• 85 % of the services must be provided outside Andorra.
• You will also have to present the criminal record certificate from the country of origin.

To request the type of active residence on your own, it is necessary:

• exercise a self-employment activity.
• Own at least 20 % of a company established in Andorra and form part of the administrative body.
• In this case, you will have to prove that you live in Andorra for a minimum of 183 calendar days per year.
• make a deposit of €15,000 at the AFA (Andorran Financial Authority). This charge is returned in full when the person ceases to reside in the country, as long as they have no debts.
• As in the first case, you will also have to present the criminal record certificate from your country.