How to open an account in Andorra

Families and companies have withdrawn 55, 000 million euros from Spanish entities so far this year, according to confirmed figures from the Bank of Spain. A flight of capital that certain international media raise up to 232, 000 million euros. Fear of the economic situation facing the Spanish State has led many people to take their savings from Spanish banks and put them "safe" in entities of foreign countries . Germany, Switzerland and Great Britain are the destinations chosen by many of these Spaniards, but also Andorra, due to their proximity to our country. Let's see what are the steps to open a bank account in Andorra and what there is to know about your financial system.

What are the banks that operate in Andorra?

The Andorran banking sector is made up of five entities: AndBank, MoraBanc, Crèdit Andorrà, Banca Privada d'Andorra and Banc Sabadell d'Andorra . All of them belonging to the Association of Andorran Banks that, in turn, is a member of the Banking Federation of the European Union. From these entities, banking services are provided - in the field of commercial banking and private banking - as well as asset management, intermediation and insurance services.

How to know which entities are authorized to provide financial services in Andorra?

All entities authorized to provide financial services in the Principality of Andorra must be registered with the INAF (National Andorran Finance Institute).

Is there banking secrecy in Andorra?

Andorra maintains banking secrecy despite having agreed to take steps to stop being considered a tax haven in the OECD. To this end, it has signed Tax Information Exchange Agreements with Spain, Portugal, Austria, Monaco, Liechtenstein, San Marino, France, Belgium, Argentina and the Netherlands.

What type of bank accounts can non-residents open in Andorra and how long does it take to open it?

The only type of bank account that non-residents in Andorra can open are numbered accounts, that is, nobody can know the identity of the owner since, after opening, the owner becomes a number. A bank account in Andorra can be opened in just one hour.

What documentation is necessary to open a bank account for non-residents?

In general, the Andorran banking entities will request you:

• Photocopy of the DNI or passport.
• Accreditation of your habitual residence (a light bill is enough).
• Verification of your professional activity.

If you are an employee, you must present at least one of the following documents: current employment contract, payroll receipt, pension or unemployment benefit, Social Security contribution statement and certificate of the company for which you work. If you are a self-employed worker, you must provide at least some of this documentation: registration of activity in the trade register, industry or liberal professions, tax declaration corresponding to the last fiscal year, bank reference that includes the professional activity and the tax identification number for economic activities.

Should we inform the Bank of Spain of the opening of a bank account in Andorra?

Yes, you must inform the Spanish Administration about the holding of accounts abroad, in this case, in Andorra. To do this, you must make a notification to the Bank of Spain using the following forms: form DD1 (to communicate the opening or cancellation of an account abroad) You have a month to make the declaration) and forms DD2 and DD2 bis (to inform of cross-border transfers of more than 600, 000 euros per year, these forms must be submitted on an annual or monthly basis, depending on the amount transferred).

Is it necessary to go personally to the entity or can documents be managed over the Internet?

The documents can be managed online, but the five Andorran banking entities require the physical presence of the account holder to sign the contractual documentation. Any transfer received will not be applied to the account until the signature has been formalized.

Are deposits in Andorran banks protected?

Law 1/2011 of February 2 establishes a guarantee system for cash deposits covered up to a maximum limit of 100, 000 euros and another maximum limit of 100, 000 euros for securities deposits. The amount of 100, 000 euros is per beneficiary. In joint pools or with more than one owner, each of the holders will be considered a beneficiary, in accordance with the provisions of the deposit agreement or, failing that, in equal parts.

What are the commissions that are applied in the accounts?

The maintenance fees that Andorran entities apply to their accounts for non-residents are very high. Thus, for example, AndBank applies a maintenance commission of 140 euros quarterly, BPA (Private Banking of Andorra) applies an administration fee of 400 euros per year, while BancSabadell d'Andorra applies a commission for the same concept of 250 euros to the semester.

Is there any type of retention?

Although Andorra maintains banking secrecy, in order to maintain it, it has had to sign agreements with Brussels allowing the withholding of taxes on interest paid to the citizens of the European Union.

• The procedures to open a bank account in Andorra are not complicated, although the high commissions charged and the withholding on the interest paid must be valued. Factors that can penalize your savings.