Is it possible to open a bank account in Andorra? In the following article we tell you everything about the Andorran banking system and what are the advantages of opening an account in one of their financial institutions. It is important to follow a complex process, but as long as the requirements demanded by the bank are met, you will be able to have an account in the Principality in a short time.
If you are thinking about opening a bank account in Andorra, the first thing we have to tell you is that, for a long time, the financial system of the Principality was characterized by banking secrecy, as well as by private banking and the lack of transparency. However, over the years, the entire system has been modified thanks to the disappearance of banking secrecy, the implementation of FATCA-CRS and the Principality’s commitment to combat money laundering.
Nowadays,opening an account in Andorra is a very safe option, since large agencies such as Fitch and Moody’s, in charge of granting certain ratings to banks, affirm that The financial system of the Principality is stable. The positive ratings for Andorran banks are synonymous with resilience, but also place them as an excellent alternative within the European Union.
On the other hand, if you are going to open an account in Andorra, you should know that the Principality belongs to the SEPA (Single Euro Payments Area). This system allows companies and organizations to make payments in euros and from different cities in the European Union. The best? With national transaction conditions.
But in addition, opening an account in Andorra is worth it because the Principality aspires to become a financial center through the attraction of international capital.
For people interested inopening a bank account in Andorra, it is important to highlight that the system is solid, but today it lacks variety. There are only three banks in the country out of the five, since two of them were absorbed by other financial institutions. The Andorran banks are:
In the Principality there was Banco Sabadell d’Andorra, but it was absorbed by Morabanc in 2021. Additionally, in 2022, Vallbanc, the country’s first bank, merged with Crédit Andorrà. And how can you choose the best institution to open a bank account in Andorra? It all depends on the needs you have as an individual or company.
The first thing is to know that any person or company can open a bank account in Andorra, but it is necessary to comply with the requirements established by each financial institution. The procedure is quite simple:
We have already talked to you about the requirements to be met to be able to open an account in Andorra, but you need to know what documentation is necessary if you want to join an institution financial of the Principality:
Contrary to popular belief, opening a bank account in Andorra is a somewhat complicated process, especially due to compliance. The regulatory compliance department or compliance of Andorran financial institutions has the obligation to verify that whoever opens an account complies with international regulations to prevent and fight against money laundering and the financing of terrorism.
Opening an account in Andorra involves much greater scrutiny than that followed in other countries such as Spain. But, although the procedure seems difficult, the resolution will be successful as long as all the requirements are met and the necessary documentation is presented.
It is possible to open an account in Andorra from Spain, but you must comply with everything required by the bank. But why do it? What are the advantages of having an account in the Principality? If you live in Andorra or want to move to the Principality, you need the account to be able to obtain administrative and tax residency, but also to contract services such as Internet, telephony, etc.
If you are not a resident, an Andorran bank is best for you because: