Andorra, the paradise of influencers and gamers

The principality of Andorra attracts more and more ‘influencers’, ‘youtubers’ and professional ‘gamers’ due to the advantageous fiscal conditions of this small country, with an ideal geographical location between Spain and France.

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

The 39-year-old Spaniard, with 170,000 followers on this social network, moved to Andorra in early 2022, a few years after her first stay.

Falcó justifies his decision by “quality of life and security” in the capital located at an altitude of 1,023 meters above sea level.

But he also recognizes the economic reasons: “In fiscal terms it is very advantageous. There is a big difference in relation to the countries that surround us”.

attractive taxation

In Andorra, income tax is only 10%, the same percentage as for companies, and VAT is only 4.5%. Its taxation is much lower and less progressive than that of its neighboring countries.

“It is an attractive tax policy, but we are not a tax haven”, defends the Secretary of State for the Economy, Eric Bartolomé, in statements to AFP.

The European Union and the OECD (Organization for Economic Cooperation and Development) removed Andorra from the list of tax havens in 2018, although some NGOs, such as Oxfam, consider that it remains so.

According to Bartolomé, “although taxation plays an important role, the standard of living and proximity to France and Spain have a greater influence on the arrival” of these professionals linked to the digital universe.

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

It was during this period that “El Rubius”, one of the best-known content generators on YouTube and Twitch in Spanish-speaking countries, with up to 40 million followers, decided to move to the country.

“After that, there was a kind of snowball effect. Some discovered Andorra as a neighboring country of Spain and which has living conditions that they consider excellent”, says Bartolomé.

‘Traders’, ‘influencers’ and digital commerce entrepreneurs followed the example of “El Rubius”, whose decision sparked controversy in Spain.

Sports stars like Spanish motorcyclist Joan Mir and Frenchman Fabio Quartararo also moved to Andorra.

With these new residents, Andorra intends to “diversify its economy highly dependent on tourism, snow and cross-border trade”.

From Dubai to Andorra

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

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

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

“Taxation had no direct influence on my decision to come to Andorra”, guarantees Huet, although he recognizes that, without the principality’s fiscal conditions, his company “would not be able to pay such a high salary”.

After attracting professional Spanish ‘influencers’ and ‘gamers’, the option for Andorra is increasingly attracting French people who dedicate themselves to these activities, and who until now expatriated to Dubai.

“There are many French ‘youtubers’ who look for me. Until now they were in Dubai, but they started to get tired and are thinking of coming to Andorra”, points out Hergel.