What changes with the new payment regulations in Andorra?
In its continuous effort to modernize its legal and financial framework, the Government of Andorra has approved an important amendment to the payment services regulation. Through Decree 415/2025, the Principality aligns its regulations with the latest European directives, specifically Regulation (EU) 2021/1230. This update, which is part of the commitments under the Monetary Agreement with the European Union, has a clear goal: to make cross-border payments in Andorra simpler, safer, and, most importantly, more transparent for users.
The new regulation focuses on several key points that directly benefit those living, working, or managing a business from the Principality. The main objectives are:
- Increase transparency: No more surprises regarding currency conversion fees. The regulation demands complete clarity about costs before any operation is performed.
- Protect consumers: Strengthens the rights of payment service users, ensuring they have all necessary information to make informed financial decisions.
- Facilitate automation: Optimizes processes for euro transfers and direct debits, streamlining operations with EU member countries.
- Consolidate integration into the SEPA zone: Bolsters Andorra’s position within the Single Euro Payments Area (SEPA), equating international euro transfers with domestic ones.
A step further towards European homologation
This measure is not isolated. Andorra has been working for years to align its legislation with that of the European Union, especially in banking and financial matters. This commitment not only allows the Principality to use the euro as its official currency and mint its own coins, but also creates an environment of trust and legal security crucial for attracting investment and talent. For those considering relocating to Andorra, these developments assure them they will operate within a modern and robust financial system.
Key points of the Decree on Cross-Border Payments
The decree introduces substantial modifications that transform how payment service providers must inform their clients. Let’s break down the most relevant aspects that will affect your daily life.
Greater transparency on currency conversion fees
One of the most notable novelties is the obligation to clearly inform about currency conversion fees. According to the new Article 10, when you pay with a card at an ATM or in a retail store (point of sale) involving a currency change, the service provider must:
- Indicate the total cost of the conversion as a percentage margin over the most recent reference exchange rate from the European Central Bank (ECB).
- Communicate this margin to the payer before initiating the operation. This allows you to decide whether to pay in the local currency or in your account’s currency, knowing the actual cost beforehand.
- Clearly display this information on the ATM or point of sale terminal.
This measure is especially useful for managing expenses while traveling or online shopping on foreign websites, providing predictability to your budget and directly impacting the cost of living in Andorra when interacting with other countries.
Proactive notifications for users
To reinforce this transparency, payment service providers (such as banks) will be required to send an email notification to their clients when performing a card operation involving a currency conversion. This message, sent once a month per different currency used, will include information about the applied commission margin.
However, the regulation also offers flexibility, allowing users to opt out of receiving these notifications if they prefer, giving them full control over the communications they receive.
Transparency also in online transfers
The new Article 11 focuses on transfers initiated via online banking or mobile apps. If you are sending money to an account in a different currency from yours, your service provider must provide you, before you confirm the operation, with the following information:
- A clear estimate of currency conversion fees.
- The total estimated transfer amount in your account’s currency, including all fees.
- An estimate of the amount the beneficiary will receive in their local currency.
This greatly facilitates cost comparison and planning of cross-border payments in Andorra, removing the uncertainty often associated with these transactions.
How does this update affect you if you live or have a business in Andorra?
The implementation of this regulation has very positive practical implications for individuals and companies in the Principality.
Advantages for residents
If you have decided to live in Andorra, these changes give you greater control over your personal finances. You can send money to your home country, manage foreign property payments, or simply shop online within the EU with full confidence that you know the costs in advance. It simplifies family financial management and removes frictions in international banking operations, making life in the Principality even more comfortable.
Benefits for businesses
For entrepreneurs and companies based in Andorra, the new regulation is excellent news. It facilitates commercial relationships with EU clients and suppliers, allowing for greater cost predictability in international transactions. Paying invoices, receiving payments, or managing payrolls abroad will become more efficient and transparent. This consolidates the appeal of Andorra’s tax system and business environment, providing a homologated and competitive payments system. You can find more information about taxation in our guide on taxes in Andorra.
Andorra and its integration into the SEPA Zone
The Single Euro Payments Area (SEPA) is an EU initiative enabling individuals and businesses to make euro payments across SEPA countries with the same ease, cost, and security as domestic payments. Andorra has been part of this zone since 2019, a milestone that offered a significant competitive advantage.
This new decree simply strengthens that integration. By adopting the most advanced EU standards in transparency and consumer protection, Andorra consolidates its position as a reliable and modern financial hub. For any individual or company, operating from the Principality means enjoying the benefits of the SEPA zone, making economic borders with Europe virtually invisible daily.
Ultimately, this legislative update reflects Andorra’s commitment to providing a stable, secure environment aligned with international best practices. It is a step forward that benefits everyone, from residents traveling across Europe to multinationals managing their treasury from the Principality.
If you are considering moving to Andorra and have questions about the financial system, company formation, or any other aspect of life in the country, do not hesitate to contact our team of experts. At Andorra Way, we offer comprehensive advice to make your project a success.