Opening a bank account in Andorra is usually one of the first steps if you want to live, start a business or manage part of your savings in the country. However, before beginning the process, it is important to understand what requirements Andorran banks usually ask for and which factors may influence account approval.
Table of contents:
- Why open a bank account in Andorra?
Who can open a bank account in Andorra?
Required documentation requested by Andorran banks
What is the process for opening a bank account in Andorra?
Andorra belongs to the SEPA zone
Banking with Andorran institutions is safe
Main banks in Andorra: How many are there??
Regulatory and supervisory bodies
Common mistakes when starting the process
When it is advisable to seek professional advice before opening an account
Why open a bank account in Andorra?
Having a bank account makes day-to-day financial management easier if you have personal, professional or business interests in the country. It allows you to make payments, receive income and set up direct debits through an Andorran bank. The country uses the euro as its currency.
In addition, Andorra is part of the SEPA zone, which simplifies bank transfers and direct debits with other participating countries. This is complemented by a competitive tax environment and a banking offering adapted to different profiles.
Who can open a bank account in Andorra?
Both individuals and companies can apply to open a bank account in Andorra.
Andorran banks apply the Know Your Customer (KYC) protocol, which requires them to identify and know their clients. The bank will request the necessary information and documentation to verify the account holder’s identity, the accuracy of the information provided and the origin of the funds. It is not possible to open accounts online or anonymously. Numbered accounts are also subject to the same identification process.
In all cases, approval will depend on each bank’s review process and the documentation submitted.
Required documentation requested by Andorran banks
Below is a general overview of the information banks usually require to open a bank account. However, you should bear in mind that each banking institution may request any additional documentation it deems necessary.
Although there are different types of accounts, if you are not a resident you will generally have a remunerated account.
- Identity document: passport or another valid identification document from your country of origin. If you are opening an account in the name of a company, incorporation documents and the tax identification number are required, as well as the notarized powers of attorney of the individuals opening the account and documents proving their professional activity within the company.
- Tax and banking documentation from your country of origin: such as a bank reference letter and your latest tax return.
- Proof of the origin of funds: such as salary slips, invoices or bank statements.
Once the account has been opened in Andorra, you may need to inform the central bank or the relevant authority in your home country.
What is the process for opening a bank account in Andorra?
The process may vary depending on the bank and the applicant’s profile, but it usually follows these steps:
1. Assess the type of account you need
Before starting the application, it is advisable to determine whether you need a personal account, a non-resident account or a corporate account.
2. Contact the banking institution
The next step is to contact the bank to learn about its requirements, conditions and the documentation needed for your specific case.
3. Prepare the documentation
The bank will request documentation to identify the account holder, verify their economic activity and justify the origin of the funds.
4. Review and response by the bank
Once the documentation has been submitted, the bank will review the application and may request additional information if necessary. It will then approve or reject the account opening request.
5. Approval and account activation
If the application is approved, the account opening is formalized and associated services such as online banking, cards and transfers are activated.
6. Monitoring account conditions and services
After opening the account, it is advisable to review fees, maintenance requirements and any conditions associated with the account.
Andorra belongs to the SEPA zone
The Principality is part of the SEPA zone, the Single Euro Payments Area. This allows you to make and receive euro transfers and direct debits with other participating countries more easily.
In practice, this facilitates banking operations with other European countries, especially if you need to receive income, pay for services, send money or set up direct debits within this area.
You can learn more in our article about the Single Euro Payments Area.
Banking with Andorran institutions is safe
Your money is safe here. Banks comply with the regulations of the Andorran Financial Authority (AFA), which supervises and monitors the country’s financial system, as well as its solvency and liquidity.
Main banks in Andorra: How many are there?
The country has three major banking groups:
- Andbank: created in 2001 through the merger of Banc Agrícol i Comercial d’Andorra, SA and Banca Reig, SA.
- MoraBanc: founded in 1958 as Banca Coma. In 1970 it became Banc Internacional d’Andorra, SA and has operated under its current name since 2011.
- Creand (Crèdit Andorrà): established in 1949.
There are a total of 32 branches and more than 60 ATMs across the country, making banking operations easy and convenient.
Regulatory and supervisory bodies
The Andorran banking system is also subject to the supervision of regulatory bodies that ensure compliance with international standards.
- Andorran Financial Authority (AFA): responsible for supervising the Andorran financial system and contributing to its stability and proper functioning.
- UIFAND (Andorran Financial Intelligence Unit): works to prevent money laundering and terrorist financing, providing a multidisciplinary and comprehensive approach that enhances effectiveness and agility in implementing measures.
- AREB (Andorran State Agency for the Resolution of Banking Entities): responsible for managing the resolution procedures of banking institutions.
Common mistakes when starting the process
One of the most common mistakes is starting the account opening process without having all the required documentation prepared or updated. The process can also be delayed by failing to properly justify the origin of funds, submitting incomplete information about economic activity or not adequately proving the applicant’s tax residency.
It is also advisable to assess in advance which banking institution best fits your profile, as requirements and acceptance criteria may vary from one bank to another.
When it is advisable to seek professional advice before opening an account
If you have doubts, or if the account opening is related to a relocation, company incorporation, investment or estate planning, professional advice may be beneficial. In these cases, an Andorran consultancy firm can help review your situation, prepare the required documentation and avoid mistakes that could delay the process.
At Advantia Assessors, we provide information and guidance throughout every step of opening a bank account for non-residents, whether for savings purposes or to establish your own company.