Banking in Andorra

When choosing a place to relocate to, banking might not be the very first thing on your list of priorities. Without it, however, life in your new home country is going to be inconvenient. It therefore goes without saying that understanding the Andorra banking system before moving here is vital.

Local banks

Three Local Banks

As of today, you’ll find three banking institutions within the borders of Andorra. At one point Andorra had five banks, but Vall Banc (previously known as Banca Privada d’Andorra, which closed shop following accusations of money laundering) has since been absorbed by Crèdit Andorrà. Each of them are available to the general public and are accepting new individual accounts along with business banking clients. You can choose from the following Andorra banks:

Andbank
Crèdit Andorrà
Morabanc

Every bank listed above is national and domestically owned. They mainly serve private and consumer banking needs for the Andorran population and local businesses. While offshore banking was once important to the Andorran economy, the exchange of information treaties has resulted in a drop in this area. Some banks are more “digitised” than others, but all feature internet banking. All offer debit and credit card facilities, typically with Visa and Mastercard. Payment processing is available through RedSys, although you’ll probably need help setting it up as it’s not a straightforward process. Mortgages for real estate in Andorra are available as well.

Automatic Exchange of Information and Common Reporting (AEOI)

Back in 2014, Andorra made the decision to sign the declaration of the Automatic Exchange of Information in Tax Matters. The goal was to combat tax evasion and facilitate compliance via a Common Reporting Standard.

This reporting standard requires all jurisdictions to collect proper financial information from all banks and financial institutions. They can then exchange this information automatically with other jurisdictions.

How AEOI Impacts Residents

Local financial institutions do not have to share information about your account with the Andorran authorities. However, the Andorran authorities will be made aware of any accounts that you have abroad.

With regard to privacy, this is a definite positive. It means that residents of Andorra can declare income appropriately to the government. All financial information within the country will be kept private. Andorra’s banks truly do respect the privacy of their clientele.

Non-Resident Banking Privacy in Andorra

If you’re a non-resident of Andorra, the following information may be shared with other jurisdictions and authorities:

Taxpayer ID number
Name
Address
Account number
Birth date
Account balances and transaction information
Ultimate beneficiary owners (company accounts)

Andorran institutions first began collecting this information back in 2017 and currently use a “narrow approach” to reporting.

We’ll Make It Easier

Whether you’re a resident or non-resident, the process of setting up a bank account in Andorra isn’t the easiest out there. However, with the right assistance, it can be quite straightforward.

There are only three financial institutions here in Andorra and each has their own strengths and weaknesses. If you’re not sure which is right for you, or you need help with setting up a bank account, contact us today!

Our team of experts is well equipped to make your transition to this lovely country as smooth and easy as possible.

Need a turnkey company in Andorra?

Get a call to answer all your questions and set up your company in Andorra in 2 months with our team of professionals with over 10 years of experience.