Fashion influencer Laia Falco in a street in Andorra la Vella, November 30, 2022 (AFP / Charly TRIBALLEAU)
Influencers, e-sportspeople, youtubers: Andorra seduces and attracts the world of the web, thanks to advantageous tax conditions and a peaceful living environment, with the aim of making this small principality nestled in the heart of the Pyrenees a stronghold of digital professions.
Laptop in hand, luxury bag hanging from her arm, Laia Falco roams the streets of Andorra la Vella to feed her “lifestyle” Instagram account, where she appears in restaurants and clothing shops in the area.
This 39-year-old Spaniard, followed by 170,000 people, returned to settle in Andorra in early 2022, a few years after a first stay.
“Quality of life, safety”, are among the reasons that prompted her to settle at the foot of the snowy peaks of the Pyrenees, in the highest capital in Europe (1,023 m).
And, she does not hide it, the financial aspect also played a role: “On the tax level, it is very advantageous, there are many differences with the countries around us.”
– “Attractive taxation” –
With a 10% income tax, 10% also on company profits, and a 4.5% VAT, Andorra and its nearly 80,000 inhabitants stand out vis-à-vis its large Spanish neighbors and French.
A view of Andorra la Vella, November 30, 2022 (AFP / Charly TRIBALLEAU)
“It is an attractive tax system but which is approved at European level, we are no longer a tax haven”, explains to AFP Eric Bartolomé, secretary of state for the economy of the principality.
“Even if taxation plays an important role, the living environment, the proximity of France and Spain, are more put forward to explain the arrival of newcomers” linked to web professions, according to him.
An increasingly important economic migration, accelerated after the start of the Covid epidemic by the arrival of the biggest Spanish youtubers, such as “El Rubius” and its 40 million subscribers on the video platform.
“Afterwards, it snowballed, by situating Andorra, some were able to discover it as a country which is right next to Spain with living conditions which they consider to be optimal”, estimates Mr. Bartolomé.
Other professions have followed in the footsteps of these “gamers”: traders, people specializing in e-commerce, influencers, but also renowned sportsmen.
By welcoming this new population, Andorra wishes to “diversify an economy very dependent on tourism, snow and border trade”, popular with the French who come to glean alcohol, cigarettes and perfume at low prices.
Virginie Hergel, who heads the expatriate agency Set up Andorra, on November 30, 2022 in Andorra la Vella (AFP / Charly TRIBALLEAU)
Several agencies have even emerged to facilitate expatriations to this small country located 2h30 from Toulouse and Barcelona, such as Set up Andorra, directed by Virginie Hergel, a Frenchwoman who has been living there for 22 years.
“There is an attractive tax system, but I also have a lot of demands for security and quality of life here, when you have minor children, there is no better place than the Principality to raise them”, assures that which accompanies “for a minimum of one year” people wishing to settle.
– “Everything is better” –
Among his clients, Vincent Huet, 29, video game designer arrived for work at the beginning of the year.
“Everything is better, it completely satisfies my lifestyle, really much more than in Paris where I was only for work”, he describes.
The snow-capped Pyrenees in Encamp, Andorra, November 30, 2022 (AFP / Charly TRIBALLEAU)
With greater responsibilities than in his last job in Paris, his salary has “more than doubled”.
“Taxation had no direct impact on my decision to come to Andorra,” he says, conceding however that without it, his employer “may not be able to offer such a salary”.
So, can the small mountainous country wedged between Catalonia and the French department of Ariège compete with Dubai and its cohorts of received influencers with many advantages?
“There are a lot of French YouTubers who contact me, who were in Dubai, who thought it was great, but now it tires them and they are targeting Andorra”, rejoices Virgine Hergel, underlining “the anonymity and the quality of life” enjoyed by some of these stars.
“Maybe I can’t grow my influencer business like I would in Barcelona or Madrid because the partnership possibilities are less important here, but for me there are a lot more positives than negatives,” confirms Laia Falco.
© 2022 AFP
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