Tax benefits of Andorra, an attraction for elite athletes and now also for youtubers
Andorra is increasingly welcoming famous personalities from all over the world, like first class athletes and youtubers with millions of followers, that move to this country to benefit from the favorable fiscal environment. The Double Tax Avoidance Agreements (DTA), a reduced 10% Personal Income Tax and the lowest IGI in Europe (equivalent to VAT), are the main reasons that are taken into account to settle in the Principality of Andorra.
The international double taxation conventions prevent those people who reside alternatively in two different countries from paying taxes on the same income twice, that is, in each of the countries in which they reside. These treaties, that affect taxes on income and assets, have been signed with France, Spain, Luxemburg, Liechtenstein, Portugal, the United Arab Emirates, Malta and Cyprus. Additionally, Andorra has a reduced 10% Personal Income Tax, a figure far below that of other countries. This Income Tax allows a lower tax on income and an increase in net profits.
The tax environment of Andorra has favoured the relocation of professional athletes to this country, such as Spanish cyclists Xavier Florencio, Joaquim Purito Rodríguez, Luis León Sánchez and Jonathan Castroviejo. In recent years, racers from other continents have also moved to Andorra, such as Simon Gerrans or Rohan Dennis. Another discipline that has also seen great experts move to Andorra has been the Motor sector with personalities such as the Espargaró brothers, Àlex Rins, Toni Bou, Cyril Despres or Joan Barreda.
Not only front line sportspeople have decided to benefit from the Andorran tax advantages, the country has also recently become a new home for important youtubers such as Willyrex, Veggetta777, sTaXx and Wismichu among many others. An increasingly widespread tendency among young people who seek media recognition through videos on social networks. Between them all, they reach more than sixty-three million followers with who they share their day to day content.
The relocation of these famous figures to Andorra, has positioned the country and it’s tax advantages on the map.