You also can open a bank account in Andorra

Have you considered opening a bank account outside of your country of residence? We are sure you have heard about all the advantages of moving your savings to a foreigner bank but maybe the lack of concrete information has been stopping you from making the final step.

In this article we will speak about all the benefits you can obtain when opening a bank account in Andorra, one of the most well-known financial jurisdictions of Europe.  

Throughout a history Andorra was a safe place for large fortunes and private banks. Because of its landscape and highly developed financial sector it has been often compared to Switzerland. However, with the process of globalization that our society has been living during last 20 years more and more middle-class workers and startups prefer to keep its earnings outside of the country where they usually reside.

The banking sector of Andorra is concentrated mostly on these financial entities: Andbank, Morabank, Crédit Andorrá, Banco Sabadell of Andorra and Vallbanc. In las years Andorra has taken a giant leap to improve its image of modern financial sector and at the same time to opt for transparency and security. Since 2018 the banking secrecy has been eliminated almost completely in this country. Thanks to these changes more and more investors now feel more secure investing in Andorra and keeping its funds in this country. Slowly but surely this financial center is moving away from being perceived as an opaque tax haven related to money laundering and illegal financial operations.

In spite of this effort to regulate the banking sector and adapt it to European and international standards the interest of the clients for Andorran banks has increased as well as the advantages that the most important financial entities of this country offer to its clients. Now not only the owners of large fortunes can find stability and security for its savings, but also small or medium investors and startups.    

Is it legal and safe to transfer your savings to Andorra?

It is completely legal to open a bank account in Andorra. As we have already mentioned the government of this country has taken the financial sector through many adjustments to guarantee the transparency and abandon the “black list” of tax havens.

Also, since Andorran banks have been fully homologated with the European standards, its solvency is among the highest in Europe. In addition, all the banks of this country are backed by AFA (Andorran Financial Authority) whose responsibility is to supervise and control the Andorran banking system, as well as guarantee the solvency of country’s financial institutions.     

Advantages of opening a bank account in Andorra

As we have already mentioned, Andorra is one of the best options for those who seek security and financial stability. However, two main advantages of opening a bank account in Andorra are the following:

Diversity

The first advice that any financial consultor will give to its client who wants to make an investment or is looking for a place to locate its funds is to distribute the capital in different deposits and currencies. Andorra offers a wide list of financial funds for small or large investments. Also, a client can open a bank account in several currencies. Therefore, the diversity of Andorran financial sector is a best way to protect yourself against possible imbalances of banking sector.

Interest rates

The interest rates of Andorran banks sometimes are much higher than those that many clients have in their national banks. Therefore, the returns on capital that you can obtain are larger.

Tax saving

Tax saving is the most important reason why so many investors from all over the world choose to open bank accounts not only in Andorra but in any country outside of their country of residence. Favorable tax regimes that this jurisdiction can offer attract both, individuals and companies. If the government of your country of residence has not signed a bilateral agreement as a part of automatic exchange of information treaty than the information about your bank account won’t be exchanges with fiscal authorities of your home country. Also, as Andorra doesn’t belong to the European Union, its banking sector is exempt from certain obligations that member countries have to comply with. For example, there are no limits on deposits and all the accounts are insured for 100.000 EUR per account and currency.

How to open a bank account in Andorra?

After we have discussed the characteristics and advantages of banking sector of this country, here comes the most important question: How to open a bank account in Andorra?

First of all, you should analyze your needs and decide whether you want to open a personal account for savings and security deposits or you need a corporate account for your company.

The basic list of documents that you have to prepare for a personal account in Andorra is a notarized copy of passport and Identity card, receipt of any utility bill on your name with your home address (not older than 3 months old) and bank certificate issued by any financial entity that you already work.

The list of documents for a corporate bank account includes: Company formation standard package of documents, copies of contracts signed with clients or suppliers to justify the licit origin of funds generated by the company. Also, each member of a company is required to identify himself and therefore he should present the same list of documents that is required for the opening of a personal account.

However, even though there is a standard list of the documents that any client has to present, each case if different and the best way to open a bank account in Andorra is through official introducer. Our company can help you to go through the process and advise on which option is the best for you.