Introduction
Cross-Border Payments in Andorra: Decree 415/2025 introduces key changes to the regulations governing payments between the Principality and European Union member states. This article provides a practical summary of what the amendment entails, how it affects residents and businesses, and what to consider if you are planning to move to Andorra or manage payments and collections from there.
Summary of Decree 415/2025
Decree 415/2025, approved on November 19, 2025, adapts the Andorran Reglamento about payment service providers to the new European provisions. Its main goal is to facilitate the automation of cross-border payments and improve transparency regarding currency conversion fees, especially for transfers and direct debits in euros within the SEPA zone and in operations involving Andorra.
The most relevant points are:
- Updating definitions and scope of application to align with European regulations.
- Incorporating technical requirements for transfers and direct debits denominated in euros.
- Obligations for transparency and information about currency conversion fees at ATMs, point of sale, and online transfers.
- Explicit inclusion of articles (10 and 11) governing prior communication to the user of the margin applied over the ECB exchange rate.
Practical Changes for Users and Businesses
For individuals, freelancers, and companies conducting or receiving payments to/from Andorra, the decree implies greater clarity on how much is paid for currency conversion and the communication channels that banks and payment providers must use.
Transparency at ATMs and Point of Sale
When withdrawing cash or paying with card in a different currency than your account’s, the provider offering the conversion must display the percentage margin over the latest ECB reference rate before starting the operation. Additionally, they must inform you:
- The amount the beneficiary will receive in their currency.
- The amount that will be charged to the sender’s account in their account’s currency.
This aims to prevent surprises in the final amount received or charged and make it easier to compare conversion options.
Online Transfers and Cost Estimates
If you request an online transfer involving currency conversion via the provider’s website or app, they must provide a pre-estimation of the total cost, including the conversion fee, and estimate the amount the recipient will receive in their currency. This improves predictability for companies invoicing internationally and residents sending money to the EU.
Obligations for Payment Service Providers
Providers must publish accessible and understandable information about the margin applied over the ECB exchange rate and offer communication channels agreed upon with users to send periodic updates and notifications about conversion operations. Users who are non-consumers can opt out of certain messages.
- Electronic publication of the conversion margin.
- Pre-operation information.
- Notifications through agreed channels (email, app, etc.).
Transition and Entry into Force
The decree becomes effective the day after its publication in the Butlletí Oficial del Principat d’Andorra. Additionally, provisions related to article 11 (about transfers) have a transitional period: they will be applicable one year after entry into force, allowing banks and platforms time to adapt technologically.
Impact for Those Moving to Andorra or Starting Businesses
If you are considering residency in Andorra or opening a business, it’s important to consider how these changes affect daily financial operations:
- Increased predictability of costs in international collections and payments.
- Potential need to adapt billing and treasury processes for companies working with clients or suppliers in the EU.
- Reviewing contracts with payment providers to ensure compliance and transparency.
For questions about taxation or business structuring in Andorra, you can consult our guides on taxes in Andorra and living in Andorra, which help plan your move and manage your finances.
Practical Tips for Users
To maximize these new transparency obligations in Andorra’s cross-border payments, we recommend:
- Comparing margins and fees among banks and providers before executing foreign currency operations.
- Reviewing pre-operation information from your app or provider’s website to know the net amount the beneficiary will receive.
- Configuring electronic notifications accepted by your provider to receive periodic summaries of transactions.
- If working with foreign clients, including expected conversion costs in invoices and agreements to avoid discrepancies.
What Does This Mean for Quality of Life and Finances in Andorra?
The strengthening of regulation over cross-border payments in Andorra enhances legal security and reduces uncertainty in international operations. For those relocating or managing a business from the country, clarity on fees facilitates financial planning and can reduce indirect costs in the long run. If you are concerned about the cost of living or daily operations, consult helpful resources such as cost of living in Andorra, healthcare system, or education in Andorra.
Practical Summary and Next Steps
In summary, Decree 415/2025 modernizes and harmonizes Andorra’s regulations with European standards on payments, with particular focus on transparency in currency conversion fees and technical requirements for euro transfers and direct debits. To adapt:
- Request pre-operation information when carrying out currency conversions or transfers.
- Compare providers and electronically published margins.
- If you are a business, review your billing and payment gateway integrations.
- If planning to move, utilize specialized resources to plan your residence and finances (moving management, contact).
Need Assistance?
If you seek personalized advice on how this decree impacts your situation (tax residence, business setup, account or payment gateway choice), in Andorraway we offer guidance to plan your move and optimize your financial management in Andorra. Check our pages about residency, taxes, and moving services to take the next steps.
Cross-border payments in Andorra now have more rules and guarantees: take advantage to reduce costs and avoid surprises in your international transfers.