Andorra, a paradise for “gamers” and “influencers”: why?

The Principality of Andorra seduces more and more ‘influencer’, ‘youtuber’ or players professionals for advantageous tax conditions of this small country, with an optimal geographical location in the middle of the Pyrenees, between Spain and France.

With her cell phone in one hand and a luxury brand bag dangling from one arm, Laia Falcó walks the streets of Andorra la Vella to feed her Instagram account, where she posts images of restaurants and clothing stores.

This 39-year-old Spaniard with 170,000 followers on that social network settled in Andorra in early 2022, a few years after an initial stay.

Falcó justifies his decision with “quality of life and safety” in the European capital located at the highest altitude, 1,023 meters above sea level.

But he also admits that he did it for economic reasons: “In terms of taxation, it is very beneficial. There is a big difference with the countries around us.”

In Andorra, income tax is barely 10%the same percentage as that of businesses, and the The VAT is only 4.5%.

Its taxation is much lower and less progressive than that of neighboring countries.

An interesting tax policy

“IS an attractive tax policybut comparable at a European level, we are no longer a tax haven”, defends the Andorran secretary of state for the economy, Eric Bartolomé, in statements to AFP.

The European Union and the Organization for Economic Co-operation and Development (OECD) removed Andorra from the list of tax havens in 2018, although some NGOs, such as Oxfam, they think it will continue to be so.

According to Bartolomé, “although taxation plays an important role, the standard of living e proximity to France and Spain influenced more in the arrival” of these professionals of the new activities of the digital universe.

This immigration of high-income youth accelerated during the covid-19 pandemic.

“The Ruby”

Thus, “El Rubius” has decided to settle in Andorra, one of the best known content generators on YouTube or Twitch in Spanish-speaking countries, and which has up to 40 million followers.

“After that, there was how a snowball effect in favor of Andorra. Some have been able to discover it as a country that is right next to Spain and that has living conditions that they consider optimal,” says Bartolomé.

“Merchants”, “influencers” or digital commerce entrepreneurs have followed the example of “El Rubius”, whose decision has generated controversy in Spain.

Sports stars have also gone to live in Andorra, such as the Spanish motorcyclist Joan Mir or the French Fabio Quartararo.

With these new inhabitants, Andorra intends “to diversify an economy heavily dependent on tourism, snow and cross-border trade”, hence the Spaniards or French who travel to the principality to buy much cheaper tobacco, alcohol or perfume.

Several agencies They were created to help its new residents move to Andorra.

“There is an attractive taxation, but I receive many requests for safety or quality of life,” says the French Virginie Hergel, who has lived in the principality for 22 years and created the Set up Andorra agency.

One of his clients is Vincent Huet, 29, a video game designer who arrived in the small country earlier this year.

“Taxation has not had a direct influence on my decision to come to Andorra,” says Huet, although he acknowledges that, without the fiscal conditions of the principality, his company “couldn’t pay me such a high salary.” “more than double” what Paris charged.

After attracting professional Spanish ‘influencers’ and ‘gamers’, the Andorra option increasingly seduces the French who engage in these activities, and who until now did expatriate in Dubai

“There are a lot of French ‘youtubers’ who contact me. Up until now they were in Dubai. Even though it sounded great to them, they are starting to get a little tired and are now thinking about coming to Andorra,” Hergel points out.

AFP extension

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