Are you thinking of moving to Andorra or setting up a business here? Recent legislative changes in the area of banking fees offer great opportunities. The Andorran government has approved a bill to reduce interchange fees for card payments. Excellent news for residents and businesses in the Principality. At AND Capital, a firm specializing in setting up companies and tax optimization in AndorraWe explain everything you need to know about these changes.
A law to unify bank charges in Andorra
The bill approved by the Andorran government aims to regulate and harmonize interchange fees throughout the country. In concrete terms, a maximum rate is now set for all card payment and withdrawal transactions, regardless of the issuing institution (Visa, Mastercard, Andorran banks, etc.). Whereas rates previously varied between 1 and 2%, they are now capped at :
- 0.2% for debit card transactions
- 0.3% for credit card transactions
According to the AND Capital team: "This measure represents a significant step forward in boosting the Andorran economy. Businesses, especially shops, will make significant savings on transaction costs, enabling them to be more competitive."
Andorra's integration into the SEPA zone
Since March 2019, Andorra has been an integral part of the SEPA (Single Euro Payments Area) zone. This means that euro transactions are processed according to the same standards as in other member countries. For individuals and businesses alike, this means :
- Simplified international payments
- A single account for all euro transactions
- Eliminating the differences between domestic and cross-border payments
In parallel with the unification of interchange fees, the adoption of SEPA standards greatly facilitates the installation and maintenance of SEPA cards. investments in Andorra for European nationals.
What impact will this have on residents and businesses?
Lower interchange fees will automatically reduce bank charges for card users in Andorra. For a country where this means of payment is very widespread, the impact on purchasing power will be significant. For businesses, the savings in transaction costs (estimated at 22% on average) can be passed on in sales prices. A virtuous circle that will boost the competitiveness of the Andorran economy.
The new law is also excellent news for anyone wishing to set up a business in Andorra, whether it's a offshore companya holding company or a patrimonial company. In addition to tax benefits already very attractive, they will benefit from lower day-to-day banking costs.
Thanks to lower interchange fees, we estimate that our corporate customers will save an average of €500 a year on their bank charges. That's no mean feat!
- The AND Capital team
Support from AND Capital
At AND Capital, we've been helping individuals and companies wishing to set up in Andorra for many years. Our expertise in company formation, tax optimization andopening bank accountsWe can advise you at every stage of your installation.
Our team is at your disposal for :
- Studying your expatriation or investment project
- Defining the most appropriate legal and tax structure
- Put together your application for active residence or passive
- Guide you to the best banking solutions
- Ensure the accounting, tax and administrative follow-up of your activities
With bank charges falling, it's the perfect time to take the plunge and enjoy Andorra's attractive lifestyle and tax system. Even for retirethe principality has serious arguments! Don't hesitate to contact us to discuss your requirements.
