YouTubers’ massive flight from Spain sparked debate over taxes for the wealthy

The wealth tax, also known as ‘A tax on the super-rich’As the pandemic prompts the authorities to search for more resources to mitigate the effects of the crisis, it generates a growing debate around the world, and the increasing inequality gap encourages calls for more progressive taxes.

But as more countries consider its implementation, including Chile, the warnings about the constitutionality of the distinction between taxpayers by wealth and above all about the effectiveness of this tool for increasing collection are multiplying, as increased pressure drives away the owners of capital.

Controversy flared up strongly in Spain after the movie “El Rubius”, one of The YouTube Known throughout the world, announced on Saturday during prof flow, What You will soon leave your tax home in the country to move to Andorra.

I am the only idiot, so to speak, who stayed here paying taxes. I don’t know, this sometimes “touches my testicles”. If they were this way with me, I might be gone. ”He commented to his followers during a live broadcast.

Currently, a content creator who has been working on YouTube for ten years, She has more than 39.5 million subscribers on the platform and receives around 4.3 million euros per yearAt the discretion SocialBlade.

But it is not the first. Like “El Rubius,” there are dozens The YouTubeAthletes and entertainment celebrities who left their home country to establish their residency in the tiny European country have since While in Spain taxes are increasing each year, in Andorra it remains at a maximum of 10%..

In fact, according to the International Organization for Migration (IOM), out of Andorra’s total population of 77,543, 58% of them hold foreign citizenship and of those 26,558 (34%) are Spanish.

Taxes in Andorra

For many, one of the main attractions in Andorra is the value-added tax, which varies between 1% and 4.5%, and is the lowest in Europe. For this reason, citizens of neighboring countries often cross borders to purchase products that reach 21% in their home countries, as is the case in Spain.

However, for The YouTube Like “El Rubius”, “Vegetta” and “TheGrefg,” the main reason for moving to this country is Personal Income Tax (IRPF), which is It only applies to people earning more than 24,000 euros per year, with a maximum of 10%..

Quite different from the case of Spain, where taxpayers of the first income bracket (less than 12,451 euros) must pay a personal income tax of 19% and From the sixth and last bracket (more than 300 thousand euros) the tax is 47%..

A tax loss in Spain

With the departure of many national celebrities, the Spanish government has seen its income drop dramatically. In fact, he said 20 minutes Secretary General of the Union of Technicians of the Ministry of Finance (Gesta), José María Molinido, The country will lose about 70 billion euros a year.

“Most of his followers need public goods but they support those people who don’t. This opens up a social debate about why some athletes are being questioned about their residency in other countries, but not these people. Perhaps because his followers do not know his income. “Added.

You may also like: From Chile to the United Kingdom, wealth taxes are becoming increasingly global

Although the number is higher Influencers Those who decided to go to Andorra, others decided to stay in Spain and continue to pay their taxes. This is the case The YouTube Ibai and Alexelcapo, who oppose the practice and openly invite their colleagues to “Think again”.

“It’s easy to think that if you earn too much you will leave, I say the rest, but you know and you really know it and I mean my co-workers, we earn a lot more than necessary. And olé, good for us. Maybe it is time to take responsibility for the rest. “Commented “Alexelcapo” in Your Twitter account.

Since 2005 Spain has not stopped raising its taxes, and this year was no exception either. In order to mitigate the negative effects of the epidemic, in January the government increased personal income tax, corporate tax and real estate tax.

However, as the tax increases, its effectiveness does not increase as much. According to the IRS, In 2018, only 202 out of 608 large fortunes paid the wealth tax. This is the institution’s last record and the lowest in the past seven years.

in this time Spain is the only country in the 27th European Union that continues to implement this tax. For the same reason, many believe it necessary to make adjustments to the model and to “harmonize” the taxes.