One of the things that can happen is that a person is considered a tax
Posted: Wed Dec 18, 2024 7:21 am
Spaniards who move to the Principality of Andorra usually create a company, which they can do as residents, thus obtaining residency and being able to pay taxes there. It is important to comply with the 183 days required by Andorran law, since failure to do so could result in a crime being committed.
Furthermore, not only must the number of days of residence in Andorra be met, but also the location of the base of the taxpayer's activities or economic interests must be taken into account . The General Directorate of Taxes employment database has indicated that in order to determine where the main centre of economic interests is located, not only the income obtained by the taxpayer can be taken into account, but also the situation of his assets or expenses. Therefore, if you move to Andorra but your assets or businesses are still in Spain, the Treasury understands that you are a Spanish resident.
But in the case of influencers, streamers or YouTubers, it can be difficult to determine where exactly the profit or business is made , since views can be generated anywhere in the world.
resident in Spain and Andorra, and this is where the tie-breaker clause contained in the double taxation agreement signed between the two countries comes into play. This agreement establishes that, when a natural person is considered a resident in both countries, his or her situation will be resolved based on a series of variables:
Depending on the State where you have a permanent residence available to you. If you have a residence in both States, depending on where your centre of vital interests is, that is, the place where you have the closest personal and economic ties.
If the above cannot be determined, you will be considered a resident where you habitually live.
Thirdly, if you habitually live in both countries, your nationality will be taken into account .
Sanctions
In the event that the Treasury determines that a YouTuber or influencer has their actual residence in Spain, they will be required to pay taxes in our country, according to their income and taking into account the income generated in other countries. If this is not done, their tax situation will be regularized, calculating not only the debt but also the interest for the delay. Adding a penalty that is considered a serious infraction that will be between 50% and 100% of the amount not paid. If it is considered very serious , the amount will be between 100% and 150%.
As long as all this is carried out through administrative channels, since if the amount defrauded exceeds 120,000 euros per year and the Treasury understands that there has been fraudulent intent, we would be talking about a tax crime .
Furthermore, not only must the number of days of residence in Andorra be met, but also the location of the base of the taxpayer's activities or economic interests must be taken into account . The General Directorate of Taxes employment database has indicated that in order to determine where the main centre of economic interests is located, not only the income obtained by the taxpayer can be taken into account, but also the situation of his assets or expenses. Therefore, if you move to Andorra but your assets or businesses are still in Spain, the Treasury understands that you are a Spanish resident.
But in the case of influencers, streamers or YouTubers, it can be difficult to determine where exactly the profit or business is made , since views can be generated anywhere in the world.
resident in Spain and Andorra, and this is where the tie-breaker clause contained in the double taxation agreement signed between the two countries comes into play. This agreement establishes that, when a natural person is considered a resident in both countries, his or her situation will be resolved based on a series of variables:
Depending on the State where you have a permanent residence available to you. If you have a residence in both States, depending on where your centre of vital interests is, that is, the place where you have the closest personal and economic ties.
If the above cannot be determined, you will be considered a resident where you habitually live.
Thirdly, if you habitually live in both countries, your nationality will be taken into account .
Sanctions
In the event that the Treasury determines that a YouTuber or influencer has their actual residence in Spain, they will be required to pay taxes in our country, according to their income and taking into account the income generated in other countries. If this is not done, their tax situation will be regularized, calculating not only the debt but also the interest for the delay. Adding a penalty that is considered a serious infraction that will be between 50% and 100% of the amount not paid. If it is considered very serious , the amount will be between 100% and 150%.
As long as all this is carried out through administrative channels, since if the amount defrauded exceeds 120,000 euros per year and the Treasury understands that there has been fraudulent intent, we would be talking about a tax crime .