Andorra Banks: Everything You Need to Know in 2025

Tucked away in the eastern Pyrenees between France and Spain, Andorra is a charming and thriving principality celebrated for its stunning scenery, strong economy, and attractive tax environment. With a population of over 82,000, Andorra boasts one of the highest GDPs per capita globally, primarily driven by the tourism and finance sectors. As of 2024, Andorra's GDP is approximately USD 3.897 billion (nominal), with a GDP per capita of USD 44,900. 

The official language is Catalan, and the euro serves as the official currency. Although not a member of the European Union, Andorra maintains close economic ties with EU countries, offering a unique blend of European charm, financial advantages, and an excellent banking system. 

5 Benefits of Having an Andorra Bank Account

Holding a bank account in Andorra presents numerous advantages, including a favorable tax environment, access to diverse financial services, facilitation of company registration and business operations, opportunities for residency by investment, and enhanced financial privacy and security. These benefits make Andorra an attractive destination for individuals and businesses seeking a strategic and advantageous banking relationship.

Favorable Tax Environment

Andorra is characterized by low tax rates, including a corporate tax rate capped at 10% and a value-added tax (VAT) of 4.5%, the lowest in Europe. This favorable tax regime makes Andorran bank accounts particularly attractive for foreigners and businesses seeking to optimize their tax liabilities. 

Access to Diverse Financial Services

Andorran banks offer a comprehensive range of services, including private banking, wealth management, and investment products tailored to both residents and non-residents. Clients can benefit from personalized financial solutions, multicurrency accounts, and access to international markets, facilitating efficient global financial management. 

Pathway to Company Registration and Business Operations

Opening a bank account in Andorra is a crucial step in establishing a company within the principality. The process involves several steps, including company name reservation, foreign investment approval, and bank compliance procedures. Once these are completed, businesses can take advantage of Andorra's favorable corporate tax rates (up to 10%) and strategic location within Europe. 

Residency by Investment Opportunities

Andorra offers residency programs for investors, requiring a minimum investment of €600,000 in real estate, national securities, or other approved assets. Maintaining a bank account in Andorra is essential for managing these investments and fulfilling residency requirements, such as demonstrating sufficient income and financial stability. 

Enhanced Financial Privacy and Security

Andorran banks are known for their stability and adherence to international standards, providing clients with a secure banking environment. While the country has increased transparency in line with global regulations, it still offers a degree of financial privacy and discretion valued by many clients. 

Andorra Banking System Explained

Andorra's banking system has evolved significantly, aligning closely with European financial standards and modernizing its services to meet contemporary client expectations. Historically known for banking secrecy, Andorra has transitioned towards greater transparency and global cooperation. This shift was marked by adherence to OECD guidelines, leading to the country's removal from the OECD's tax haven blacklist in 2009. 

The Andorran Financial Authority (AFA) oversees the sector, ensuring compliance with international standards and fostering a stable financial environment. There is no Central Bank in Andorra. The AFA ensures that all banking operations adhere to stringent regulations, including anti-money laundering laws and international information exchange agreements. This regulatory environment enhances the security and reliability of Andorra's banking system. Key legislative frameworks include:

• Law 35/2010: Governs the authorization process for establishing new financial entities in Andorra.
• Law 8/2013: Details organizational requirements and operational conditions for financial institutions, focusing on investor protection and market integrity.
• Law 14/2017: Addresses the prevention of money laundering and terrorist financing, reflecting Andorra's commitment to global financial security standards.

The official currency is the euro, and Andorra participates in the Single Euro Payments Area (SEPA), enabling seamless euro-denominated transactions across Europe. While Andorra boasts an extensive network of bank branches and ATMs, coverage in remote areas may be limited to one or two banking groups. 

What are the Best Banks in Andorra?

Andorra's banking sector is renowned for its stability and robust financial services, catering to both residents and international clients. Below is an overview of the leading banks in Andorra:

Andbank

Established in 1930, Andbank is the oldest private banking institution in Andorra. It offers a comprehensive range of services, including private banking, asset management, and corporate banking. With a presence in multiple countries, Andbank serves a diverse clientele, emphasizing personalized financial solutions. The following are the service fees of the bank: 

• Account Maintenance Fee: €18.00 bimonthly.
• Account Administration Fee: €600.00 quarterly.
• Account Opening Study Fee: €300.00.
• Inactive Account Fee: €50.00 annually.

Creand (formerly Crèdit Andorrà)

Founded in 1950, Creand, previously known as Crèdit Andorrà, is a prominent financial group in the Principality. The bank provides services such as private banking, commercial banking, and asset management. In 2023, the group rebranded to Creand, unifying its international operations under a single name. The bank has received multiple accolades, including recognition as the "Bank of the Year" in Andorra. The bank’s fees are as follows:

• Account Maintenance Fee: €15.00 quarterly.
• Account Administration Fee: €50.00 quarterly.
• Account Opening Fee: €200.00.
• International Transfer Fee: 0.25% of the amount, with a minimum of €20.00.

MoraBanc

MoraBanc, established in 1958, offers a wide array of financial services, including retail banking, private banking, and asset management. The bank has been recognized for its digital banking initiatives, receiving awards for its banking app. MoraBanc emphasizes innovation and customer-centric services, catering to both individual and corporate clients. In relation to the service fees, they are: 

• Account Maintenance Fee: €12.00 quarterly.
• Account Administration Fee: €40.00 quarterly.
• Account Opening Fee: €150.00.
• International Transfer Fee: 0.20% of the amount, with a minimum of €15.00.

When choosing a bank in Andorra, you need to consider factors such as the range of services offered, digital banking capabilities, international presence, and the bank's commitment to transparency and regulatory compliance. 

Private Banking in Andorra

Andorra's banking sector has evolved significantly, aligning with international standards to offer robust private banking services. Andorran private banking is a highly specialized service focused on the comprehensive management of wealth for high-net-worth individuals (HNWIs) and family groups. These services are tailored to address a wide range of needs, including investment management, estate planning, financial strategies, and tax optimization.

To join the ranks of Andorra's private banking clientele, clients typically need to invest a minimum of €500,000, though some banks may accept investments starting at €350,000. This entry point not only provides access to exclusive financial services but also establishes a trusted relationship with a personal account manager, who can offer invaluable guidance on navigating the Andorran financial landscape and beyond. Generally, Andorran private banks offer a broad array of products customized for entrepreneurs, HNWIs, and digital innovators. Some notable options include:

• Access to Global Investment Funds and Equities: Clients can invest in international markets, derivatives, or structured financial products.
• Goldman Sachs Private Banking: Exclusive access through partnerships with leading Andorran banks.
• Unit Linked Insurance: International life insurance policies that provide tax-efficient planning options, ideal for mitigating exit taxes.
• Non-Resident Bank Accounts: Designed to reduce geopolitical or asset seizure risks.
• International Omnibus Accounts: Multi-national banking solutions offering enhanced security and flexibility.
• SICAVs (Open-Ended Investment Companies): Ideal for real estate investments and other diversified portfolios.

Online Banking in Andorra

Andorran banks have embraced digital transformation, offering advanced online banking platforms that provide clients with secure and convenient access to their accounts. Institutions such as Creand Crèdit Andorrà, Andbank, and MoraBanc have developed user-friendly mobile applications and online services. These platforms enable users to perform a range of transactions, including fund transfers, bill payments, and investment management, all from the comfort of their devices. Features such as real-time account monitoring, personalized financial insights, and secure communication channels with banking advisors enhance the user experience. The integration of robust security measures, including biometric authentication and encryption protocols, ensures the protection of clients' financial information. This digital approach reflects Andorra's commitment to modernizing its banking services while maintaining high standards of security and customer satisfaction.

Offshore Banking in Andorra

Offshore banking involves opening a financial account in a jurisdiction other than the account holder's country of residence. These accounts offer access to international financial services, asset protection, favorable tax regimes, and enhanced management of currency exposure. When conducted in compliance with home-country and international regulations, offshore banking is entirely legal and serves as a valuable tool for financial planning.

Andorra is a standout destination for offshore banking due to its unique combination of safety, stability, and modern financial services. The country's banks are renowned for their exceptional solvency and liquidity ratios, consistently surpassing international benchmarks. This financial strength ensures that funds remain safeguarded even during periods of economic uncertainty. Andorran banks are also recognized for their prudent risk management practices and commitment to transparency, offering clients a high level of trust and confidence.

The banking sector in Andorra operates under strict regulatory oversight, fully aligned with international standards. These regulations include robust measures for anti-money laundering (AML) and counter-terrorism financing (CTF), ensuring a secure and compliant banking environment. Andorran banks are widely respected for their professionalism and client-centric approach. A leading example is Andbank, which is highly regarded for its personalized services catering to foreign clients. It specializes in wealth management, private banking for high-net-worth individuals, and expert investment advisory services tailored to global opportunities.

For foreigners, opening a bank account in Andorra is both legal and safe. Foreign clients can confidently use Andorran banks for savings, investments, and international business transactions, benefiting from the country’s robust financial infrastructure and commitment to excellence in banking services.

Requirements to Open a Bank Account in Andorra for non-residents

Opening a bank account in Andorra is a straightforward process, but it involves meeting specific requirements to comply with the country's stringent financial regulations. These regulations emphasize transparency regarding the origin of funds and proof of solvency. Here are the requirements to open a bank account in Andorra for non-residents:

• Proof of Identification. A valid passport or government-issued national identity card is mandatory for all applicants. This establishes your legal identity and is the first document required.
• Proof of Residential Address. Applicants must submit recent utility bills, bank statements, or other official correspondence that clearly indicates their current address. If your identification document already lists your address, additional proof may not be necessary.
• Demonstration of Financial Solvency. Banks require evidence of your financial stability. Recent payslips, profit and loss statements, or other financial records are typically acceptable.
• Verification of the Source of Funds. To ensure transparency, you must provide documents that substantiate the origin of the funds you intend to deposit. For example:
  • Business registration documents (for self-employed individuals).
  • Employment contracts (for salaried workers).
  • Other records appropriate to your financial activities.
• Bank Reference Letter. Some banks may request a reference letter from your current financial institution to assess your financial history and establish trust.
• Notarized Documents. If submitting copies of required documents, they must be notarized to meet Andorran banking standards.

In addition, banks may request tax records, banking history, or a social security number (if applicable) depending on the applicant’s profile and the type of account being opened.

How to Open a Bank Account in Andorra?

Setting up a bank account in Andorra as a foreigner involves a detailed process to comply with local banking regulations and ensure a seamless experience. Below is a step-by-step guide:

Step 1. Choose the Right Bank

Begin by researching banks in Andorra that cater to non-residents and align with your financial needs. Major banks in Andorra include Andbank, Credit Andorra, and Morabanc. Consider the services they offer, such as personal banking, business accounts, or investment solutions, and ensure they provide online banking, foreign currency accounts, or wealth management services if required.

Step 2. Gather Required Documentation

To open a bank account in Andorra, you will need a valid passport, proof of your address (like a utility bill), and documents showing where your funds come from, such as bank statements or a letter from your employer. Some banks may also ask for a reference letter from your current bank. Make sure everything is translated into Spanish, Catalan, or French if needed and properly certified. 

Step 3. Initiate the Account Opening Process

• Application Form: Complete the bank's official account application form, which may be available online or at the branch.
• In-Person Visit: Most banks in Andorra require an in-person visit to verify your identity and documents. Ensure you schedule an appointment and prepare for an interview to explain the purpose of the account and your financial activities.
• Background Check: Banks in Andorra conduct thorough due diligence, including anti-money laundering (AML) checks, which may take several weeks.

Step 4. Fulfill Initial Deposit Requirements

Andorran banks may require a minimum initial deposit depending on the account type. For personal accounts, this could range from €1,000 to €5,000, while business accounts may have higher thresholds. Check the specific requirements with your chosen bank.

Step 5. Maintain Compliance with Tax Obligations

As a foreign account holder, you must ensure compliance with international and local tax regulations, including:

• Reporting your Andorran account to tax authorities in your home country, if required.
• Understanding Andorra’s regulations concerning account activity and maintaining transparency about your financial activities.

Step 6. Seek Professional Advice

Opening a bank account in Andorra can be a complex process due to stringent regulatory requirements. Consulting a financial advisor familiar with Andorra's banking system and international tax laws can simplify the process.

3 Recommendations to Choose the Best Offshore Bank in Andorra

Golden Harbors can assist in the bank account opening process in Andorra by providing expert guidance on selecting the most suitable bank based on your financial objectives. We can help navigate the compliance procedures, ensuring all necessary documentation is prepared and submitted correctly. Furthermore, Golden Harbors offers insights into the Andorran banking system, helping you understand the benefits and requirements of opening an account in the country. When selecting an offshore bank in Andorra, consider our following recommendations:

1. Assess the Bank's Services and Expertise. Evaluate whether the bank offers services that align with your financial goals, such as wealth management, investment advisory, or private banking. For instance, Andbank is renowned for its private banking and asset management services. 
2. Understand the Bank's Fee Structure. Be aware of the bank's fees for account maintenance, transactions, and other services. Some clients have reported high fees for basic banking transactions in Andorra, so it is crucial to understand these costs upfront. 
3. Consider the Bank's International Reach and Stability. Opt for banks with a strong international presence and a history of financial stability. For example, Morabanc, founded in 1958, offers various banking services and has a solid reputation in Andorra.

FAQ

What is the Currency in Andorra?

Andorra does not have its own currency but uses the euro (€) as its official currency. Although it is not a member of the European Union, Andorra has a monetary agreement with the EU, allowing it to issue its own euro coins.

How Easy is it to Do Business in Andorra?

Andorra offers a business-friendly environment with low corporate tax rates (up to 10%) and no capital gains tax. The country has simplified regulations for starting a business, but certain requirements, such as securing residency or obtaining local approvals, may add complexity for foreigners. Strategic sectors like tourism and finance provide lucrative opportunities for investment.

Does Andorra Have a National Bank?

No, Andorra does not have a central bank. However, it has a robust financial system supported by private banks. Financial regulations are overseen by the Andorran Financial Authority (AFA), which ensures compliance with international standards.

Can a Foreigner Open a Bank Account in Andorra?

Yes, foreigners can open bank accounts in Andorra. However, the process involves extensive due diligence, including proof of income, a valid passport, and sometimes a minimum deposit requirement. Financial transparency regulations make it essential to provide documentation verifying the source of funds.

How Safe are Banks in Andorra?

Banks in Andorra are considered safe and reputable, adhering to strict international standards on financial security and transparency. The banking sector is well-regulated by the Andorran Financial Authority (AFA), and banks maintain high liquidity ratios to ensure stability.

Does Andorra Share Banking Information?

Yes, Andorra has adopted international standards for financial transparency, including the Common Reporting Standard (CRS). This means that Andorran banks share financial information with other participating countries to prevent tax evasion and ensure compliance.

Do You Need to Have an Andorra Bank Account to Register a Company in Andorra?

Yes, opening a corporate bank account in Andorra is typically required to register a company. The account is used to deposit the company’s share capital and manage financial transactions. A personal account may also be necessary if the business owner seeks tax residency in Andorra.

Can You Obtain Tax Residence by Having a Bank Account in Andorra?

No, simply having a bank account in Andorra does not qualify you for tax residency. Tax residency in Andorra requires fulfilling specific criteria, such as residing in the country for at least 183 days per year and meeting investment or employment requirements.

What is the Easiest Country to Open a Bank Account as a Foreigner?

While Andorra offers banking options for foreigners, other countries, such as Portugal, UAE, Georgia, Vanuatu, or Caribbean nations like Grenada, St. Kitts and Nevis, St. Lucia, Antigua and Barbuda, and Dominica are often considered easier for non-residents to open accounts due to fewer documentation requirements and more streamlined processes. The choice depends on the individual’s needs, residency status, and banking preferences, including factors such as tax efficiency, ease of transactions, and currency options.