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High-income Spaniards move to Andorra to pay less taxes

2022-02-06 14:55

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2022-02-06 14:55

High-income Spaniards move to Andorra to pay less taxes
/ Twitch

One of Spain’s most popular streamers, Xokas, has warned the government that if it continues to increase taxes, it will start paying taxes in Andorra, where they are much lower. At least 10 other famous Spanish YouTubers have migrated to Andorra due to increasing fiscal pressure in the country.

The problem concerns not only streamers and YouTubers, but also athletes, models and singers who can do their work from anywhere in the world or are often on the go.

“It looks like they are not satisfied with paying more than half of what I earn,” Xokas said in a live webcast. – I love my country, but I will not be beaten. This is a warning to the government: if it continues to raise taxes, I will get out of here too. ” In 2021, Xokas criticized his colleagues who decided to leave Spain due to high taxes.

Według „Business Insider Spain”, the treasury lost at least € 1.3 million in tax revenues on the revenues of 10 streamers generated in just nine months on the Twitc platformh, not including income from other online platforms, sponsorship, various events and advertising campaigns.

Some stopped paying in Spain from 50,000. up to 630 thousand euro, because in Andorra they pay on the same income from 10 thousand. up to 140 thousand euro. Such a large difference in the amount of taxes is the reason why people with high incomes move to a neighboring country.

Carlos Cruzado, head of the tax office workers’ unions (Gestha), said in an interview with Business Insider Spain that “the focus should not be on the emigration of these people, as they have the right to do so, but on the tax systems of countries such as Andorra, which can be called tax havens, although they do not have such a legal classification ”.

Spain’s Finance Minister, Maria Jesus Montero of the socialist PSOE, announced a performance in February tax reform proposal to be carried out in 2023/2024. She assured that the public finance deficit amounting to 11 percent. GDP in 2020 will decrease to 5% this year, and to 3% in 2024, which means an increase in state revenues by EUR 80 billion.

According to the ABC daily, a large part of the deficit reduction will come through massive tax increases rather than cuts in government spending. The daily emphasizes that at the beginning of the year, Pedro Sanchez’s government raised several taxes, including income tax from natural persons, from legal persons, insurance premiums, pension schemes, VAT on sweetened beverages and plastics.

From Saragossa Grażyna Opińska (PAP)

opi/ ap/

Source:PAP

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