YouTuber Shocked by Andorra Builder's Honest Invoice Due to 4.5% Tax
A content creator moving from Spain to Andorra was surprised when a builder insisted on invoicing renovations, thanks to the low 4.5% IGI tax rate.
Key Points
- YouTuber asked Spanish-style 'no invoice' for home renovations in Andorra.
- Builder puzzled, insisted on invoice due to low 4.5% IGI tax.
- Spain's 21% VAT incentivizes undeclared work; Andorra's rate promotes transparency.
- Anecdote highlights cultural-economic tax differences between neighbors.
A YouTuber who recently moved to Andorra shared a surprising experience that highlighted the principality's low-tax environment compared to Spain.
Upon settling in the country, the content creator hired a builder—known locally as a *paleta*—to carry out renovations at his home. Drawing from practices he knew in Spain, he asked the worker not to issue an invoice, implying a desire to avoid formal billing.
The builder was puzzled by the request. The YouTuber quickly realised why: Andorra's IGI sales tax, equivalent to Spain's IVA, stands at just 4.5%. With such a low rate, there is little incentive for informal, undeclared work.
He recounted the anecdote in a video, using it to illustrate a key cultural and economic difference between the two neighbours. In Spain, where VAT rates reach 21%, off-the-books dealings are more common to evade higher taxes, the YouTuber noted. Andorra's favourable regime, by contrast, encourages transparency even among tradespeople.
Original Sources
This article was aggregated from the following Catalan-language sources: