How to develop an influencer and YouTuber activity in Andorra: self-employed or company?

One of the most frequently asked questions we receive from influencers and YouTubers, like many other entrepreneurs, is whether they should start their business as self-employed individuals or if it would be more beneficial to set up a company. This is a crucial question since the implications in terms of commercial and tax matters differ between the two options.

Before answering this question, we will make two clarifications:

1. Whether you are an influencer, YouTuber, Instagrammer or blogger, if you regularly carry out an economic activity in exchange for compensation (monetary or in kind), you are required to report your activity to the Andorran Tax Administration through census registration and registration as self-employed with the Caixa Andorrana de la Seguretat Social (CASS).
2. Influencers/YouTubers who wish to move their residence and activity to Andorra must apply for a residence permit called J1 “self-employed residence”, which involves setting up a company and registering as self-employed.

For national influencers/YouTubers or those who already have a residence and work permit, they may choose between setting up a company or registering as self-employed or as a business.

To resolve this matter, we outline the procedures, fees, and responsibilities for both options:

COMPANY

• Procedures
  • Company name reservation, foreign investment permit, drafting of articles of association, public deed of incorporation, registration in the companies register, and request for a digital certificate from the tax agency
• Requirements
  • Register books of shareholders, beneficial owners, meeting minutes, and accounting records
• Fees
  • Annual company fee of approximately €850
• Taxation
  • Corporate Income Tax (IS) applied to company profits at 10%
  • General indirect tax (IGI) of 4.5%
  • Liability: limited to the capital contributed

SELF-EMPLOYED

• Procedures
  • Trade name reservation, business opening request, social security registration, personal digital signature, CASS digital certificate
• Fees
  • CASS fee in the first year: €238.33; following years: variable depending on net income and turnover, between €117.12 and €644.16
  • Annual business license fee of approximately €250
  • Activity fee: variable depending on location and premises, approximately between €500–€3,000
• Taxation
  • Maximum Personal Income Tax (IRPF) rate: 10%
  • General indirect tax (IGI) of 4.5%
  • Requirements: accounting books
  • Liability: personal and unlimited

When deciding which structure is best to manage and tax your activity, we see that in terms of time and formalities, setting up a company can take more than 2 months and involves more formal requirements, whereas registering as a business can be completed within 1 month.

Regarding liability, self-employed individuals are personally liable for any debts, which may include their personal assets such as their home, while forming a company limits liability to the capital contributed.

As for income level, if you have set up a company, the corporate tax rate is 10%. In case of opening a business as a self-employed person, you will be taxed under IRPF: incomes below €24,000 are taxed at 0%, with a maximum rate of 10%.

With this information, you can get a clearer idea of whether setting up a company or registering as self-employed is more suitable for you. If you have a high income or significant business potential, it may be more beneficial to incorporate and assume all formalities. However, there are other tax-related variables that must be assessed on a case-by-case basis.

Sometimes you may think that the income you receive as a YouTuber, Instagrammer or via any other social network has no commercial or tax impact, but we recommend reviewing your personal situation to determine your obligations. Our team in Andorra or Barcelona can help you with any aspect related to the tax planning and advisory services you need. If you have any questions or need clarification on this topic, don’t hesitate to contact us.

• PREV
• NEXT