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Spanish Official Debunks Andorra as Superior Tax Haven for Influencers

Finance ministry expert Carlos Cruzado dismisses claims that Andorra beats Spain as a tax haven, highlighting its lack of welfare state model and.

Synthesized from:
ARADiari d'Andorra

Key Points

  • Spain's tax burden 3-4% below EU average, not a 'tax hell'.
  • Influencers like El Rubius relocate to Andorra, not Germany or France.
  • Andorra lacks welfare state model, unsustainable for larger EU countries.
  • Andorran minister admitted its tax system can't apply EU-wide.

A Spanish finance ministry official has dismissed claims that Andorra represents a superior tax haven compared to Spain, describing the Principality as no model welfare state and highlighting contradictions in the choices made by relocating influencers.

Carlos Cruzado, an auditor and technical expert at Spain's Ministry of Finance, made these points during a recent appearance on the *Saldremos Mejores* podcast. He rejected suggestions that Spain operates as a "tax hell," noting that its tax system mirrors those of other European Union nations. Cruzado argued that Spain's overall tax burden remains three to four percentage points below the EU average, undermining justifications for moving to low-tax jurisdictions like Andorra.

He specifically targeted YouTubers and content creators who cite high Spanish taxes as their reason for relocating, using streamer El Rubius's 2021 move to Andorra as a key example. "When these YouTubers say they're leaving for Andorra because Spain is a 'tax hell,' they don't go to Germany, France, or Italy," Cruzado stated. He pointed out that such individuals opt for Andorra—a small country historically sustained by finance and more recently by tourism—rather than comparable EU economies with established welfare systems.

Cruzado stressed that Andorra stands apart from EU members due to its size and economic model. "It is not precisely an example of a welfare state," he said, adding that it cannot serve as a fair benchmark for larger nations. He recalled how El Rubius's relocation drew widespread media coverage, prompting an Andorran finance or economy minister to admit that the Principality's tax system could not be applied across any EU country.

The remarks come amid persistent debates over Spain's fiscal pressures and the exodus of high-profile figures to Andorra.

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