top of page
  • servicio776

Banks in Andorra and how to open a bank account

Many people who want to move to another country, transfer their family and their business there are primarily interested in how the banking system works in the new place. Let's analyze this issue.

The banking system in the Principality of Andorra can be described with one phrase “Know your client”. Each depositor is treated specially, and the banking sector itself makes up about 20% of the total GDP.

Banks of Andorra

The financial system of Andorra consists of 5 banking groups and several insurance companies. These five banks are Morabanc, Andbank, Vallbanc, Andbank, and Banque Sabadell d'Andorra. Each of them is a large financial institution that guarantees transparency, operates large volumes of assets of individuals and legal entities and has a good trust rating. Information about each of these banks can be found in any database without any problems. Due to this, the influence of the banking system on the country's budget is much higher than that of neighboring countries, which tells about its high level.

Andorran Financial Authority (AFA)

It is worth noting such an important institution as the Andorran Financial Authority (AFA). This organization has a very wide range of influence in the principality, monitors the competitiveness of banks, promotes healthy interaction of the banking system within the country and abroad, cooperating with foreign banks, being a member of the European Banking Federation (EBF). The Andorran Financial Authority (AFA) exercises strict control over the entire financial and insurance system, reducing any risks for consumers and guaranteeing the transparency of the system, a low level of bureaucracy, thus maintaining the country's image on the market.

In addition, the Andorran Financial Authority (AFA) has the authority not only to monitor financial transactions, but also to influence them according to the laws and the judicial system of the country, and thanks to that, not only clients can have peace of mind, but it also opens up opportunities for those who want to relocate, live in this country as an individual, or to engage in non-commercial activities.

Andorra and SEPA

SEPA is a single zone in which the differences between domestic and international payments in the euro coins have been eliminated. This makes cashless payments very easy, and Andorra works with this system. Its peculiarity is that it is controlled at the state level, which means that its users can not worry about the safety of their savings and easily carry out any money transfers in 36 countries that support this system.

You are a company head, or just an individual, with the help of SEPA you can easily operate with credit funds, pay for goods and services, receive or pay salaries, and so on. At the same time, the commission is either absent or is much lower than that offered by other payment systems.

Is it profitable to be a client of Andorran banks and how to open an account here and is there any banking secrecy?

Since Andorran banks are not so well-known and cannot seriously compete with the large world and European banks, they offer interesting lending options, which should be familiarized with on a case-by-case basis. In addition, the financial system of Andorra allows you to open an account in French or Spanish banks and also offers interesting tools for interaction between these countries. So, you can make transfers between several sister banks between Andorra and Spain (for example, Banco Sabadell) without commission using the aforementioned SEPA. The same goes for cash withdrawals from ATMs and cash registers.

Opening an account in banks in Andorra is not difficult - your legal status does not matter, you can become a client. But this does not mean that it does not matter who their client is. The Bank and the Andorran Financial Authority (AFA) will keep a close eye on what transactions you carry out when it comes to significant amounts to prevent money laundering. Otherwise, you will have access to all banking instruments, such as investment funds, the ability to buy and sell various types of assets, or multicurrency accounts. There is no official banking secrecy in Andorra.

Since 2016, after the signing of the relevant agreement with the European Union, banking secrecy has been eliminated - the tax office has all the data on depositors' finances. Any concealment of this information is a criminal offense. All these reforms were carried out to avoid any violations related to money laundering, terrorism, insurance fraud.

So what are the advantages of the Andorran banking system?

These obviously should not include the commission for transfers, which is the case, if you do not observe certain points described above. It's easy for residents of the country, but a non-resident may have problems with this. However, there are several undeniable advantages for all clients of the banks of the Principality of Andorra.

The tax burden.

Competently approach this question, then the taxation of your income in this country will become minimal, or even begin to bring you income.

Ability to have an account in a foreign bank.

In Andorra, you can easily have an account with another bank and make transactions between your accounts, which can provide excellent opportunities if you approach this issue carefully.


Since the banking system is carefully controlled by state authorities, is transparent and clean, you may not worry not only about your own expense but also about the financial, credit, and insurance guarantees that your bank promises to you. Among other things, your deposit is automatically insured, that is, in any case, you will feel more confident.

Ability to manage online

Not all European banks, even in 2021, allow all transactions to be carried out online. Through the Internet, you can both manage your accounts and make payments as well as buy/sell assets and use other banking instruments.

What documents do you need to open a bank account in Andorra?

The documentation required to open an account is minimal. Of course, it depends on whether you are an individual or a legal entity, what assets you have, and so on, but here is a package of documents that will probably be enough for you:

  • Birth certificate, driver's license, or passport

  • Tax and bank declaration from the previous place of residence

  • Documentation of the origin of the money to avoid the turnover of "dirty" money.

That's all. The banking system of Andorra can be called developing. For many years it was considered "gray" and "dubious" money was kept here. Over the past five years, several reforms have taken place that brought out "black cash" and made this system more attractive for honest investors, and every day everything is done here for their convenience and to increase the attractiveness of Andorra as a whole, and, remarkably, it works.

If you have questions related to banking in Andorra or moving to a principality, then we, those who know everything about this country, will be happy to advise and provide information under your case. You can count on us anyway.

66 views23 comments

Recent Posts

See All
bottom of page