German influencers are quickly relocating to Madeira in the last weeks of 2023, as content creators in Portugal can still secure a long-term tax advantage that saves them a significant amount of money. One of the largest German gaming streamers on Twitch, the LoL streamer NoWay, now explains why he is staying in Germany, even though he could save a lot of money in Madeira.
This is the situation:
- It has been known for some time that German content creators, especially in the gaming sector, are drawn to the Portuguese island of Madeira. YouTuber Simon Unge is particularly associated with Madeira.
- However, in the last weeks of 2023, there was a hectic rush among German-speaking Twitch streamers to get to Portugal quickly. We reported on the streamer LetsHugo and ELoTRiX.
- The appeal of Madeira lies in a regulation that expires on 1.1.2024, which allows streamers to save massively on taxes when they move to Portugal. We elaborated on the entire principle in an article on MeinMMO.
Madeira attracts:
What NoWay says: 31-year-old Frederik “NoWay” Hinteregger is one of the biggest German streamers overall. Considering the watch time over the last 365 days, NoWay ranks 3rd behind Eliasn97 and Papaplatte. He primarily streams the MOBA League of Legends.
When he is asked by his fans, during a game with Teemo, about the appeal of Madeira for German content creators, he initially avoids the tax topic.
NoWay explains:
- Madeira is attractive for streamers – it has good infrastructure, good internet, and is relatively inexpensive
- One can also go outside without being recognized at every corner – especially for female streamers, that’s nice, as they don’t have to fear “weird stalkers”
But then viewers do specifically ask about the tax topic. A viewer says the regulation ends, and NoWay agrees:
“Yes, that’s why everyone who wants to move to Madeira is moving now because starting in 2024 it won’t be possible to do what is being done now.”
Streamer shows much understanding for people who emigrate
How does NoWay see this? NoWay has a lot of understanding for streamers who emigrate to Madeira. He does not view it as “tax evasion” but rather as tax flight or tax optimization.
Those who move to Portugal in time will have enormous tax advantages for 10 years. For influencers with a fleeting career, this is practically “for a lifetime.”
NoWay then explains soberly:
“At the end of the day, it’s like this: It simply makes mathematical sense to do this, and therefore many creators will use it. You are not tied to working from anywhere. You can move freely. Most of them have already paid hundreds of thousands in taxes. They most likely have a very, very short career ahead of them, which can end at any time.”
In response to a comment from the chat that it is completely antisocial, NoWay said that one could see it that way. But one saves 45% to 50% of taxes, and maybe 2% to 5% of the community would reproach them and stop supporting a streamer moving to Madeira:
“It’s a very, very simple mathematical calculation for anyone who does this. People always get upset and complain about it, but then you look at the real big tax evaders, and it doesn’t bother anyone. So I believe if you are in the position, you would be simply stupid not to do it.”
He makes it clear: Given the current situation, it would be “just plain stupid” not to do it.
NoWay says he stays in Germany – Can give something back
So why doesn’t he do it? Even though NoWay elaborates on why it pays off to move to Madeira, it is out of the question for him.
NoWay says:
- He likes living in Germany, and his family, which is tied there, is very important to him. He cannot “re-locate” them
- He is already quite tall and has a good income – although not as much as he could have for his height, some comparably large streamers have laughed at his earnings. But he is satisfied with his income.
- He can give something back this way, so it’s “fine for him”
He doesn’t care much about money anyway. He prefers to play, which doesn’t cost much: “I don’t have an extravagant lifestyle. I just want to sit in my basement and nerd out, and you can do that anywhere, and it’s not expensive.”
Trymacs makes it clear: You can’t win there
What does Trymacs say? Variety streamer Trymacs also commented on the topic of tax evasion in a recent stream. He sees it as an example that you can’t please viewers:
- If he says he enjoys living in Germany and paying taxes, he is accused of being a “system loyalist”
- If he talks about moving to Madeira and escaping, he is called an antisocial tax evader
More on the topic:
Twitch streamer explains why wealthy influencers are now urgently moving to Unge in Madeira
