Under the exchange of financial information up to which has signed Andorra information as required by the agreement is automatically sent to the countries concerned on 30 June and 31 December each year.
When you open an account in Andorra as a new resident you are invariably a fiscal resident in another country ( If you are not then your application for a bank account is likely to be refused). Imortantly your status as a fiscal resident in that country will remain in place until such time as the bank is informed otherwise. This information can ONLY be in the form of a fiscal residency certificate issued in Andorra ( if that is your intention and to stop the automatic exchange of information).
That certificate can only be issued after 183 days after your residency card was issued. I have successfully requested on one occasion and they accepted the date of actual application to Immigration, this was a special request and should not form part of your calculations. This means that you will continue to be a fiscal resident in your previous country unless or until the bankl has received the Andorran fiscal certificate.
Te issue of the certificate does not necessarily mean you will be required to declare and pay tax, but logically that will become the next step where institutions wherever may require prooof of an actual return. If you require fiscal residency in Andorra then 10% after allowances is arguably a reasonable price to pay.
Accounts here normally operate as multi-currency which means you can transfer any currency such as Sterling or US Dollars to your Andorran bank account and it will be credited in the currency received.
I advise anyone transferring money in Andorra to change the currency here upon receipt and not to change to Euros in the country from which you are sending.
• Capitalisation is high with a “solvency ratio” of about 23% compared with a worldwide legal requirement of 10%,
• Liquidity is good with an “aggregated loan to deposit ratio” below 70% compared with over 100% in most European commercial banks,
• Stress test results in 2010 were as good as any other financial centre,
There are 5 main banks in Andorra, but one will notice the absence of the usual array of UK and foreign institutions. However all banks are efficient, online, and subject to due diligence and anti-money laundering directives.
Listed below are the five banks in Andorra together with links to their websites. Please note this list is for the purposes of a guide only and does not constitute advertising in any way:-
Asset Management Service, Mora Banc offers a personalised solution to customers with a significant volume of assets, requiring active and professional management for their financial assets. Best Commercial Bank Andorra in 2017, granted by The International Banker
Commercial & Private Banking. Crèdit Andorrà retains the best private bank in Andorra award granted by The Banker and PWM 08/11/2018
Providing a personalised service in private banking and asset management for customers all over the world for over 120 years.
The new bank in Andorra, the only foreign owned bank ( J C Flowers Group). The bank is still in the opening process and is reported to be progressing well. Thie replaces BPA which was named by FinCEN in USA in connection with alleged money laundering.
Banc de Sabadell d'Andorra
Private and commercial banking, plus online banking and other services.
On August 10 Fitch Ratings upgraded Andorra’s rating to BBB+ with a stable outlook. The Agency also improved the short-term foreign currency to F2 from F3 as well as the country ceiling which has been revised to A+ from A-.