The Principality of Andorra is a European micro-state located in the Central Pyrenees between Spain and France, members of the European Union.
Andorra’s economic model to date has been mainly based on tourism (skiing and commerce), the financial sector and, to a lesser extent, construction and real estate in recent years.
The Andorran banking sector comprises a total of five banking groups and has more than 80 years’ experience in this activity. The banking entities in Andorra render banking services (retail and private banking), asset management, brokerage and insurance services.
|Nominal GDP (2013)|
|2.4 bln EUR (0.00%)|
According to Department of Statistics (Andorra), nominal GDP of Andorra in 2013 was 2.4 bln EUR.
|CPI, Year Average (2013)|
|0.0 % (2012: 1.1 %)|
According to Department of Statistics (Andorra), inflation rate in Andorra in 2013 expressed as annual percentages of average consumer prices was 0.0% which was below the Euro Area average (1.4%) and below the European Union average (1.5%).
Chart 1. Inflation Rate in Andorra. Source: Department of Statistics (Andorra).
|BBB (good credit quality), outlook stable||-|
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Andorra are shown in Table 1.
|Natural person, resident||0.0 %||0.0 %|
|Natural person, non-resident||10.0 %||10.0 %|
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Andorra signed TIEAs which already came info force with the following jurisdictions (for agreements which came into force after 1 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Andorra and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 1 January 2013 of signing the agreement is given in brackets):
Andorra signed the automatic information exchange agreement on 02 November 2016 and committed to start the automatic information exchange in September 2018.
Andorra has signed bilateral agreements with 29 jurisdictions to automatically receive information:
Andorra has signed bilateral agreements with 29 jurisdictions to automatically send information:
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
|FATCA Status in Andorra|
Although there is no IGA between Andorra and the United States, banking and financial entities operating in Andorra have reached the agreement with the IRS to participate in FATCA on an individual basis.
|Maximum Protected Amount|
|100 000 EUR|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Andorra are summarised in Table 2.
|Scheme Participants||all credit institutions operating in Andorra, branches of Andorran banks abroad|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||cash demand deposits, term deposits, deposit certicifates and other similar debt securities|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 2. Deposit guarantee scheme in Andorra.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
|Local Currency (Euro)||Foreign Currency|
|A3 (upper medium grade)||A3 (upper medium grade)|
Local currency (Euro) deposit ceiling for Andorra is set to A3 (upper medium grade), foreign currency deposit ceiling is A3 (upper medium grade).
|Number of Banks|
|Consolidated Assets (2016)|
|14 492.46 mln EUR (+0.56%)|
|Recent Changes (2016)|
|new banks: 0, closed banks: 0|
Currently there are 6 credit institutions operating in Andorra.
In 2016 consolidated banking assets in Andorra were 14 492.46 mln EUR. The consolidated banking assets' evolution is shown at Chart 2 below.
Chart 2. Consolidated banking assets in Andorra.
Recent structural changes (2013 - 2016) of the banking sector of Andorra are summarised in Table 3.
|Number of Opened Banks||0||0||1||0|
|Number of Closed Banks||0||0||1||0|
Table 3. Recent structural changes in the banking sector of Andorra.
The list of the most recently opened banks in Andorra is provided in Table 4.
|Vall Banc, SAU (new)||June 2015|
Table 4. The most recently opened banks in Andorra.
|Rank||Name||Total Assets||Market Share|
|1||Credit Andorra Group||5721.77 mln EUR||39.48 %|
|2||Andorra Banc Agrícol Reig, SA (Andbank)||4988.68 mln EUR||34.42 %|
|3||Mora Banc Grup, SA||2253.94 mln EUR||15.55 %|
|4||Vall Banc, SAU (new)||830.51 mln EUR||5.73 %|
Incorporated in 1949, Crèdit Andorrà Group is now the largest bank in Andorra employing universal banking model to provide a wide range of services - retail, corporate banking and private banking, asset and wealth management as well as financial advising and insurance.
Crèdit Andorrà, SA is the 1st largest bank in Andorra in terms of total assets. In 2016 its total assets were 5 721,77 mln EUR, providing the bank with the market share of 39.48%. In 2016 the bank's net income was 65,04 mln EUR.
Crèdit Andorrà, SA is rated by Fitch. Long-term credit rating assigned to the bank by Fitch is BBB (good credit quality). Crèdit Andorrà, SA participates in deposit guarantee scheme of Andorra. This scheme covers accounts up to 100 000 EUR per bank per depositor.
Andorra Banc Agrícol Reig (Andbank), SA was created in August 2001 as a resultof the merger between Banc Agrícol i Comercial d’Andorra, SA (foundedin 1930) and Banca Reig, SA (founded in 1956).
Andbank started the internationalization process of Andorran banks in 2001 when it opened in the Bahamas the banking entity under the name Andbanc (Bahamas) Ltd.Andbank continued its international expansion with the acquisition of otherfinancial and banking entities, such as wealth managers, representation offices and banking licences.Andbank is the second-largest bank in Andorra.
Andorra Banc Agrícol Reig, SA is the 2nd largest bank in Andorra in terms of total assets. In 2016 its total assets were 4 988,68 mln EUR, providing the bank with the market share of 34.42%. In 2016 the bank's net income was 47,47 mln EUR.
Andorra Banc Agrícol Reig, SA is rated by Fitch. Long-term credit rating assigned to the bank by Fitch is BBB (good credit quality). Andorra Banc Agrícol Reig, SA participates in deposit guarantee scheme of Andorra. This scheme covers accounts up to 100 000 EUR per bank per depositor.
Incorporated in 1958 under the name of Banca Coma, it changed its nameto Banc Internacional d’Andorra, SA in 1970 and to Mora Banc Group, SA in November 2011.MoraBanc Grup offers services in commercial banking, private banking and asset management, investment banking, wealth management and investment funds, and insurance, in addition to offering its customers differentiated and exclusive products.Mora Banc Grup is the third-largest bank in Andorra. Mora Banc Grup and Mora Banc, SAU operate together under the MoraBanc brand name and they present their financial statements and other data in a consolidated manner. This page contains consolidated data of Mora Banc Group, SA and Mora Bank, SAU.
Mora Banc Grup, SA is the 3rd largest bank in Andorra in terms of total assets. In 2016 its total assets were 2 253,94 mln EUR, providing the bank with the market share of 15.55%. In 2016 the bank's net income was 23,01 mln EUR.
Mora Banc Grup, SA is rated by Fitch. Long-term credit rating assigned to the bank by Fitch is BBB- (good credit quality). Mora Banc Grup, SA participates in deposit guarantee scheme of Andorra. This scheme covers accounts up to 100 000 EUR per bank per depositor.
Vall Banc SAU was formed in June 2015 as a bridge bank for Banca Privada d'Andorra (BPA) to segregate BPA’s assets and liabilities that areconsidered to be legitimate.
Vall Banc, SAU is the 4th largest bank in Andorra in terms of total assets. In 2016 its total assets were 830,51 mln EUR, providing the bank with the market share of 5.73%. In 2016 the bank's net income was 11,90 mln EUR.
Vall Banc, SAU participates in deposit guarantee scheme of Andorra. This scheme covers accounts up to 100 000 EUR per bank per depositor.