Today in the world of the global internet in which we live, it is common for all of us to consume videos on the web on a daily basis or to consult our social networks frequently, regardless of our age or our tastes. These new leisure consumptions have been accompanied by new agents such as youtubers, influencers or instagramers. These new professions (because if they are jobs that require good professional organization), and thanks to the ability they have to reach a large number of consumers, they also make them highly profitable from an economic point of view. and business. For this last reason and like any other type of business, it is essential to draw up a good plan, from a tax point of view, to optimize a profession that is not known whether or not it will enjoy an expiration date. In this post, what we are going to analyze is that it will have to be taken into account if you want to work as a youtuber from Andorra from a tax point of view.
First of all, it will be essential to identify who youtuber is and what the business model is to see the Andorran taxation that accompanies it.
What is a youtuber?
A youtuber is a person who produces content in video format on Youtube. This last definition (which would be the most academic or the one we would easily find anywhere) we could understand that, today, it would not fit the reality of this business, because today a youtuber is more than that; a youtuber can upload videos to other web platforms (such as Twitch) or additionally share photos and videos on social media (such as Instagram).
What is the business model of a youtuber?
A youtuber, as we saw in the previous point, is dedicated to uploading videos to the network, whatever the topic and of any type, whether it’s about video games, travel, product promotion …
This business model, which is based on uploading content to platforms, in most cases, can be done from anywhere without the need to be located in a specific place or country. Likewise, the “customers” of this business model, who are still ourselves, the consumers of videos, can be found all over the world. Given these particularities, it is clear that we are facing a completely relocated business model.
On the other hand, youtubers have the possibility of collaborating with brands / companies that use their channels to reach consumers / followers of these professionals. Therefore, in this second point we can also identify a business where the revenue that can be received does not come from a single customer located in a particular country, but these can be global.
Why is Andorra a good place to be a youtuber from a tax point of view? What should be considered?
Thanks to the particularities analyzed of this type of business, being these the relocation for the exercise of the activity and the globalization of his public, do that Andorra is an ideal country to exercise this type of business.
This last statement is supported by the good location of the principality within the European continent, and enjoying a very prominent data transmission network; not to mention that the taxation offered by this country will be very interesting compared to its neighboring countries. The maximum tax for individuals and companies is 10% (personal income tax in Andorra does not apply to salaries below € 24,000 per year), the general IGI (known in Spain as VAT) is 4.5%, capital gains are generally not taxed, no donation tax is paid and there is no wealth tax.
However, in order to obtain all these tax advantages, you must be considered a tax resident in Andorra.
To be a tax resident in Andorra, you must justify carrying out your activity in this country as a youtuber, influencer or instagramer, in addition to fulfilling a series of conditions to be able to obtain your tax residence in the country of Andorra. You must live at least 183 real days a year in the Principality of Andorra, be over 18 years old, have no criminal record, obtain a tax domicile in the Principality, and your main center of interest must be in Andorra.
If you are a youtuber, influencer or instagramer (we know it is not the same) and if you have any further questions about it, do not hesitate to contact us to analyze, comment and plan for tax everything that is necessary for your possible establishment in Andorra as a tax resident.