As a result of social networks and websites where audiovisual content can be shared, new sources of income have emerged. More and more people are professionally dedicated to uploading content of any kind on social networks, on classic platforms such as YouTube or some newer ones such as twitch. These people are also known colloquially and under the Anglicism of streamers. In this post we are going to analyze the sources of income from streaming and the taxation that accompanies it in Andorra.
First of all, it will be essential to define what a streamer is. Well, we would say in a very simple way that a streamer is that person who transmits live or pre-recorded content online and through any web channel.
The sources of income from streaming can be very varied, since they can come from donations from the followers themselves located anywhere in the world, from agreements signed with different national or international brands or from specific collaborations to carry out advertising actions of global impact, everything and always, through the streamers’ own broadcast channels.
From the Andorran tax point of view, these people will be considered professionals and must pay taxes on all world income (whether or not they come from the streaming itself) regardless of their origin, type or origin.
Thanks to the particularities of this type of business (because yes, it is still a business), being this same offshoring for the exercise of the activity and the globalization of the streaming public, they make Andorra an ideal country to exercise this type of business.
This last statement is supported by the principality’s good location within the European continent, a very prominent data transmission network, and very attractive taxation compared to its neighboring European countries.
The business profits derived from streaming in Andorra would be taxed at 10% and the general IGI (what is known in Spain as VAT) for all those operations that are understood to be carried out in Andorran territory would be 4.5%.
However, in order to obtain all these tax advantages, it will be necessary to be considered a tax resident in Andorra.
To have the status of tax resident in Andorra, it will be necessary to justify the performance of your activity in this country as a streamer, apart from fulfilling a set of conditions to be able to obtain your tax residence in the Andorran country. It will be necessary to live at least 183 real days a year in the Principality of Andorra, be over 18 years of age, have no criminal record, obtain a tax address in the Principality, and that your main center of interests becomes in Andorra.
If you are a streamer and if you have any further questions in this regard, do not hesitate to contact us to analyze, comment, and fiscally plan everything that is necessary for your possible establishment in Andorra as a tax resident.