YouTubers’ mountain retreat: Andorra becomes tax dodge for online influencers

El Rubius is the latest YouTuber to move to the tiny, mountainous state between France and Spain, at a time when Madrid is struggling with its economy. Graham Keeley reports

Skiers at the Grandvalira mountain and ski resort, Andorra (Getty)

Andorra is increasingly becoming home to a new breed of wealthy Spanish YouTubers who have moved to the tiny mountain principality to pay lower taxes, sparking controversy in the middle of an economic crisis. 

El Rubius, who has 39.5 million followers and earns a reported €4.3m per year, is the latest high-profile figure to announce he will move to enjoy the Pyrenees state’s low tax regime.  

The 30-year-old, whose real name is Ruben Doblas Gundersen, has worked with Hollywood star Chris Hemsworth among a number of film projects and is one of the most popular social media stars in the world.  

However, at a time when Spain is struggling through a severe economic crisis caused by the Covid-19 pandemic, the spectacle of young social media stars trying to cut their large tax bills has angered some.  

Income tax in the micro-state is 10 per cent compared with 47 per cent in Spain for those who earn more than €300,000, a figure which most top YouTubers far exceed.  

The VAT rate is also much lower, varying from 0 to 4.5 per cent in Andorra compared to Spain where it is between 4 and 21 per cent.  

Alexelcapo, a YouTuber who has 1.7 million subscribers and produces video games, said higher earners should pay a larger share of taxes to support the health system during the coronavirus pandemic.

“We are in the middle of one of the worst health crises in living memory and yes our taxes are going up. I may have to use those medical services in the future, or perhaps not, but someone does. We all do,” he told The Independent.

Ibai Llanos, a streamer who was reported to have annual earnings of €1.3m, said he was staying in Spain despite the “abysmal” difference in taxes with Andorra.  

“It seems normal to me that people who earn lots of money have to pay more. There are many YouTubers who think the same. It is true that when you see the [tax] difference between Andorra and Spain, it is abysmal and shocking but it seems better to pay taxes here [in Spain],” he said.

Apart from El Rubius, other well-known Spanish YouTubers who have moved to Andorra include Vegetta777 and Willyrex, who have 32 million and 16.5m subscribers respectively.  

El Rubius defended his new choice of home, saying he had decided to swap Spain for Andorra to be with his friends.  

“I have spent, literally, 10 years of my life paying [taxes] here. I know that there will be people who criticise me. Many times people criticise without knowing anything, but I am not worried,” he said on the Twitch platform.  

“Obviously, [paying less taxes] is a plus, but if it were just for that I would have done that years ago.” 

In 2018, Andorra criminalised tax evasion in the fight against money laundering and terrorism financing. The move was also designed to promote full banking transparency.  

The year before, the Organisation for Economic Cooperation and Development removed Andorra from its “grey” list of tax havens.