Andorra is a small landlocked country in the Pyrenees surrounded by France and Spain with a population of about 80,000 inhabitants. Relative to its size, it has a large banking sector in terms of assets under management. The international banking industry originated and grew substantially in the 20th century due to the political regimes in the Iberian peninsula - Spain and Portugal.
Andorra became a financial hub in the first decades of the second half of the 20th century due to the authoritarian regimes, autarchy, and capital controls in both Spain and Portugal, whose wealthy people and enterprises found a safe haven in Andorra’s banks. Even when Spain and Portugal transitioned to democracy, Andorra’s banking sector continued to grow, benefiting from its established reputation and economic ties to its larger neighbour.
The Andorran banking sector is unique in its composition, being predominantly made up of local, family-owned banks with no relevant presence of foreign/multinational banking groups. This situation partly arose from its isolated geographical location and the political will to maintain local control of Andorra’s key economic sectors and barriers of entry. Nowadays, despite some foreign institutional investors having participated in local banks, Andorra’s banking sector’s control remains local, as a key part of its economic identity.
The primary government body responsible for overseeing and regulating the financial sector in Andorra, including banks, insurance companies, and other financial institutions, is the Andorran Financial Authority, known in Catalan as the Autoritat Financera Andorrana (AFA), previously known as the INAF.
Andorra’s banking sector, once primarily focused on serving wealthy clients from Spain, Portugal, and France, has successfully broadened its appeal in the 21st century. Through regulatory reforms, diversification of services, as well as internationalization efforts through the establishment of branches in the USA, Luxembourg, Panama, and other financial centers -Andorran banks have attracted a more diverse clientele, primarily from both Western and Eastern Europe, North America and Latin America, either as individuals or operating through domestic or offshore companies.
The banking sector consolidated substantially in Andorra in recent years through mergers and acquisitions. Currently, there are only 3 active banks in Andorra: Andbank (Andorra Banc Agrícol Reig), Creand (Crèdit Andorrà), and MoraBanc (Mora Banc Grup, SA). Other banks such as Vallbanc (the successor of BPA) were acquired by Creand, and the Andorran subsidiaries of Spanish banks such as CaixaBank and BancSabadell were also acquired by Creand and Morabanc respectively.
Andorran banks serve both residents and nonresidents. Their international banking business is characterised by their strong focus on private banking, wealth and asset management, as well as insurance services.
When it comes to nonresident clientele, it mainly consists of affluent individuals (or their vehicles) requiring investment and wealth management services, maintaining portfolios generally starting from EUR 500,000. Andorran banks have a great understanding of personal investment vehicles, and family wealth structures, including family offices, offshore foundations, trusts, and other fiduciary arrangements.
They also serve nonresident institutional investors requiring treasury and asset management services.
Transactional banking services for nonresident companies conducting commercial activities are also available, especially in Creand and MoraBanc. However, such transactional banking services are generally provided as part of a broader relationship with the same nonresident company or the controlling persons of the company which includes wealth management and investment services.
At Flag Theory, we assist nonresident companies and individuals to open corporate and personal bank accounts in Andorra, primarily for investment purposes.
We work with 2 different banks in Andorra, each bank has different eligibility requirements, types of accounts available and onboarding processes.
We invite you to carefully review each banks requirements and services to better understand if their banking services meet your needs.
Andorra, officially Principality of Andorra, is a European microstate that holds a unique place on the continent. It is a sovereign landlocked country located in the eastern Pyrenees Mountains, covering an area of approximately 468 square kilometres, sharing its borders with France to the north and Spain to the south and west. Andorra's capital city is Andorra la Vella, which is also the country's largest city. The official language is Catalan, but Spanish, Occitan, and French are also commonly spoken. Its official currency is the Euro (EUR).
The country is the sixth-smallest state in Europe, the 16th-smallest country in the world by land and the 11th-smallest by population.
Believed to have been created by Charlemagne, Andorra was ruled by the count of Urgell until 988, when it was transferred to the Roman Catholic Diocese of Urgell. The present principality was formed by a charter in 1278.
The present principality has a unique political system characterised by a co-principality. It is jointly ruled by two co-princes—the President of France and the Bishop of Urgell in Spain. This arrangement has historical roots dating back to medieval times when Andorra was granted sovereignty by its co-princes. The country's political structure is a parliamentary democracy, with a government led by a Prime Minister.
Andorra has a tradition of political stability, with a strong commitment to democracy and the rule of law. The population actively participates in the country's political process through regular elections and a multi-party system.
Andorra has a diplomatic presence on the international stage. It maintains a special relationship with the European Union (EU) through a customs agreement, although it is not an EU member. The country is also a member of the United Nations (UN), the Organization for Security and Co-operation in Europe (OSCE), and various international organisations, contributing to global initiatives and development programs, such as the World Trade Organization (WTO) and International Monetary Fund (IMF).
The economy of Andorra has evolved significantly over the years and it has a thriving economy. Traditionally, it relied heavily on agriculture, particularly the cultivation of tobacco, rye, and wheat. However, in recent decades, the country has diversified its economic base. Today, tourism plays a significant role in the nation's economy, drawing visitors with its ski resorts, hiking trails, and duty-free shopping. Andorra has become a popular destination for winter sports enthusiasts and shoppers looking for affordable luxury goods.
Andorra is also known for its banking and financial services sector, which offers financial stability to individuals and companies alike. The country's advantageous tax framework attracted foreign investments and businesses, contributing to its economic prosperity.
Our banking support service is not just a mere introduction to the bank. We assist you in filling out the business questionnaires appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application. Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal 'back and forth' and a smooth account opening process.
Bank Account opening requirements are subject to change at the discretion of the bank. There might be additional fees charged by the bank itself. Bank account opening is not guaranteed and is subject to the bank policies and compliance department. There might be restrictions on UBO nationalities, business activities and/or jurisdictions. A refund is available if the account is not successfully opened subject to our terms of service (30% to partly cover service and payment processing and administrative costs apply).