Wealth Management in Andorra: How to Choose Your Private Bank

A private banking centre refocused on compliance

Wealth management in Andorra covers the private banking services of the Principality's banks, namely securities custody, discretionary or advisory mandates and multi-currency accounts, supervised by the AFA. Historically the business served Spanish and French clients; since bank secrecy ended, it relies on declared assets, source-of-funds checks and tax reports supplied to clients, with full tax transparency towards their country of residence.

Historically, most of Andorran banks' business was wealth management for Spanish and French clients. Since bank secrecy ended, the business has relied on declared assets, source-of-funds checks and tax reports supplied to clients.

Managed mandate or advice in Andorra: the suitability test

Under a discretionary mandate, the core of wealth management in Andorra, the manager decides alone within a signed risk profile. Under an advisory arrangement, the client approves each proposed trade. Andorra's MiFID-inspired investor protection rules require a suitability assessment beforehand.

Entry thresholds and the client profile banks seek

Each private bank in Andorra freely sets the minimum assets needed for a managed mandate, and the threshold is not regulated. Smaller portfolios are usually steered towards in-house funds, while bespoke mandates target considerably larger wealth.

Securities custody and SAGI protection up to 100,000 euros

Securities entrusted to the bank remain the client's property and are segregated from its balance sheet. If the bank could not return those instruments, Andorra's investment guarantee system, SAGI, would compensate the client up to 100,000 euros, separately from the deposit guarantee.

Subsidiaries in Spain, Luxembourg or Switzerland

Several Andorran groups have built private banking subsidiaries outside the Principality. A client may therefore be offered custody in another jurisdiction, and should know which supervisor and which guarantee scheme apply to each account opened.

Multi-currency deposits in a euro country

Although the euro is the official currency, Andorran private banks hold accounts in US dollars, Swiss francs or sterling and execute foreign exchange. Conversion spreads on large amounts are a cost item to compare just like the management fee.

A closer look at the wealth offering of Creand Crèdit Andorrà

Before signing a mandate with Creand Crèdit Andorrà or another bank in the Principality, ask for the cost disclosure document, performance history by profile, the retrocession policy and the list of custodians used for foreign securities.

Custody fees, management charges and retrocessions

A private bank's bill usually combines a management or advisory fee, custody charges, brokerage and underlying fund costs. Local rules require ex-ante disclosure and an annual cost statement, which you can compare with a bank in your home country.

Annual tax report for French or Spanish taxpayers

Most Andorran private banks provide a tax report tailored to the client's country of residence, detailing interest, dividends and gains. A French resident reports this income on the tax return and the securities account on form 3916; the data is also exchanged under the CRS.

Passive residence and managing assets locally

Andorran residence without gainful activity requires placing a legally set minimum of assets in the Principality and lodging a guarantee with the AFA. A private bank then structures and holds these eligible investments, which does not replace independent tax advice.

How to choose a private bank in Andorra

Begin by clarifying your need: delegating management, being advised while still deciding, or simply keeping your securities in safe custody. Note your investment horizon, risk profile, the currencies that interest you and your country of tax residence. These points let you compare wealth management in Andorra offers on identical criteria rather than on impressions.

Then contact several institutions in the Principality and put the same questions to each: do they accept non-resident clients, what minimum assets do they expect, in which language is the relationship conducted, and who will be your adviser. Entry thresholds are set freely by each bank; a written comparison quickly shows which institutions suit your situation.

Meet at least two advisers before deciding, preferably in Andorra la Vella. Observe how clearly they explain the workings of the mandate, the investment policy, the risks and the costs. An institution that answers precisely, without promising any return, deserves more attention than another whose message stays vague or overly commercial.

File and profile for wealth management in Andorra

The private bank applies the same identification obligations as for any account: passport, proof of address, tax number and CRS self-certification. For a portfolio it adds precise source-of-funds evidence: a sale deed, an estate, savings statements or tax returns. Anticipate this work, because it governs the pace of opening far more than signing the mandate itself.

Prepare your investor profile as well. The suitability questionnaire records your experience, financial situation, objectives and tolerance for loss. Answer honestly: an overly optimistic reply leads to an unsuitable portfolio, and the bank relies on this document to justify its recommendations or its refusal of certain transactions.

If you are considering moving to the Principality, say so, because the private bank can then tell you about investments eligible for passive residence. This information does not replace independent legal advice: the law sets the amounts and conditions, and only the Andorran authorities confirm a residence application.

Wealth management in Andorra: questions to ask before signing

Ask for the cost information document and the full tariff: management fee, custody charges, brokerage and the costs of underlying funds. Require a worked example in euros for an amount comparable to yours. This transparency is the basis of an honest comparison between a discretionary mandate, advice and simple custody of securities.

Question the bank about its inducement policy, the share of in-house products in portfolios and the performance history by risk profile. Also request the list of custodians used for foreign securities and the protection that applies to each. Precise answers show how the bank handles possible conflicts of interest.

Finish with exit and follow-up questions: frequency and form of reports, changing the risk profile, termination procedure and the time needed to transfer securities to another institution. A client informed of these points before signing avoids unpleasant surprises if needs change or tax residence moves.

Common mistakes with a mandate in Andorra

The first mistake is to focus only on the management fee. The real cost includes custody charges, brokerage and fund fees; only a total in euros allows comparison. The second is to confuse advice with a mandate: under advice you approve each transaction and you bear the decision.

Another frequent trap is to believe that the discretion of the past remains. Andorran banks supply tax statements, exchange data under the CRS and verify the source of assets. Report the securities account and its income in your country of residence, for example on form 3916 for a French resident.

Finally, do not sign under pressure and do not transfer your entire wealth in one go. Begin with a reasonable amount, observe the quality of follow-up and the clarity of reports, then adjust. Always verify the institution's authorisation with the AFA or directly with the bank.

Reviewing wealth management in Andorra: statements, changes and exit

After the account is open, keep a simple routine for checking what the bank sends you. A private bank in Andorra will usually provide valuation statements and a report on the portfolio; compare them with the investment profile you signed and with the costs announced at the start. If the allocation drifts away from the risk level you accepted, ask for a written explanation. Wealth management in Andorra works best when the client reads each report and raises questions early rather than at the end of the year.

Tell the bank promptly about any change in your situation, such as a new address, a new country of tax residence or a change in the origin of your funds. Private banking in Andorra relies on up-to-date client information, and an outdated file can lead to requests for documents at an awkward moment. If you later decide to leave, ask in advance how securities are transferred to another institution, what fees apply and how long the process takes in practice, since timing varies by bank.