Offshore Banking Andorra

When opening Andorra offshore bank account, one of the most important aspects to take into account is the particularity of the Andorran banking system. Andorra offshore banks went through an important modernization process in recent years.

One of the aspects that may be of most interest to those who are considering the possibility of opening offshore accounts in Andorra is the transparency of the system. There is no banking secrecy for non-resident accounts, which for some may be a disadvantage. However, the benefits offered by Andorran banks for foreign deposits for holders of Andorra residency are extremely attractive.

Which Banks Open an Offshore Account in Andorra?

Andorra has the tightest banking privacy for resident bank accounts. When you apply for passive residency or active residency in Andorra, financial institutions are not required to share information about resident accounts with Andorran authorities, which is why they remain safe from unwanted intrusion into their private financial affairs.

The Andorran banking sector is made up of AndBank, MoraBanc, Crèdit Andorra, VallBanc, and Banc Sabadell d’Andorra, which belong to the Association of Andorran Banks. These five entities provide banking services in the field of commercial and private banking, as well as asset management, brokerage, and insurance services.

The only type of bank account that non-residents can open in Andorra is numbered accounts. These are accounts in which no one can know the identity of the holder, since, after opening, the holder becomes a number.

Andorra Offshore Banks: Advantages

What are the advantages of opening an offshore account in Andorra? The transparency that some people consider as a disadvantage is a huge benefit for security. The country’s financial system offers a modern structure adapted to the new times, with no room for operations outside the law. And this is an aspect that many angel investors appreciate.

Continuing with the security aspect, something essential to keep in mind before opening offshore accounts in Andorra is that the banks enjoy great solvency, one of the highest in Europe. Banks are supervised by the Andorran Financial Authority (AFA). On the other hand, AFA insures the money up to a maximum amount of €100.000 in case of financial bankruptcy.

Another interesting advantage for deciding to open offshore accounts is Andorra tax rates. Although the tax burden has risen in recent years, the truth is that the tax rates in Andorra are much lower than in other European countries. In addition, although bank commissions are somewhat higher, so are the interest rates offered.

Diversification of Capital

The first piece of advice that any financial advisor will give you is to distribute your capital in different deposits. Andorran banking is an excellent and safe option for your funds. That’s why Andorra is already on the radar of many small and medium-sized savers who want to secure their money by placing some of it outside the country.

Diversifying is a smart way to protect yourself against possible imbalances in the banking system. An Andorran bank can offer you better interest rates than your national bank and you will get a better return on your capital with tax advantages. In addition, Andorra does not belong to the European Union, its banking system is exempt from certain obligations that member countries have to comply with and is not subject to the limits imposed by the European Central Bank in the case of bank deposits.

How to Open an Offshore Bank Account in Andorra?

Opening an account, either as a resident individual, as a non-resident individual, or as a company, is the last step. To get there, the first thing you have to do is to analyze what your specific needs are and then look for the formula that best suits your personal circumstances. Do you need a personal account? A company account? These are the basic documents you will need:

• Identity: For personal accounts, a valid passport or ID card, with an updated address, plus a receipt of any utility bill where the details appear.
• For companies, incorporation documents, NIF, and the corresponding powers of attorney.
• Tax and banking: bank statements, bank reference letter, tax declaration in the country where the tax domicile is located.
• Accreditation of the origin of the funds: Andorran banks do not want to know anything about activities related to money laundering and will require proof of the origin of the funds.

How can you justify it? Generally, the justification will be done through work contracts that you have in your country of residence, service contracts with other companies, tax returns, purchase or sales invoices. However, each case is different and the requirements may vary. The best way to do everything correctly is to seek professional advice. Andorra Partner can help you through the whole process and advise you on what is best for you. Contact us and you will soon have your bank account in Andorra.

Andorra Offshore Account: Ease of Transactions

We pointed out that the Andorran banking system has been significantly modernized in recent years. An aspect that is also reflected in the procedure for opening offshore accounts in Andorra. The process is carried out very quickly, although basic documents are required, including identification of the person or company and tax and bank statements.

Within eagerness for transparency, when opening an offshore bank account in Andorra, the entities also request documentation that proves that the origin of the money is legal. Banks avoid at all costs funds coming from illicit activities such as money laundering.

For all these reasons, although banking privacy for non-residents has disappeared from the country’s banking system, opening offshore accounts in Andorra is still very attractive if you want to diversify deposits, enjoy better taxation or have your funds in a modern, healthy, and very safe financial system.

In any case, it is always good to have a piece of advice when opening offshore accounts in Andorra. Whether you are an individual or a company, at Andorra Partner we offer you the best service!