Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the AFA authorisation, including banking and payment rails.
Get a payment license in Andorra.
Andorra is a euro country outside the EU with a payment law copied from PSD2: Law 8/2018 on payment services and electronic money, recast in June 2026, with the capital rules in Law 7/2013. The Andorran Financial Authority authorises payment institutions on EUR 20,000 to 125,000 and e-money institutions on EUR 350,000, decides within three months of a complete file, and charges EUR 7,367 to create either. The country joined SEPA in 2019 and taxes profit at 10%.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Andorra in brief
PSD2 in Catalan, a euro without the EU, and a 10% rate.
Law 8/2018 of 17 May 2018 gave Andorra a payment-services and e-money statute on the PSD2 model; it was amended in 2018 and again by Law 5/2026, and the recast text has applied since 4 June 2026. The licences are the entitat de pagament and the entitat de diner electrònic, both authorised by the Autoritat Financera Andorrana. The prudential rules were inserted into Law 7/2013 as Articles 60 to 73: a payment institution is an SA or SL with its registered office and head office in Andorra, and Article 66 sets its capital at EUR 20,000 for money remittance, EUR 50,000 for payment execution through telecom or digital devices where the operator only intermediates, and EUR 125,000 for the other services; an e-money institution needs share capital of at least EUR 350,000. Own funds follow the directive's volume method with the k factor for payment institutions and 2% of average e-money in circulation for issuers.
The authorisation procedure sits in Law 35/2010. Article 5.6 gives the AFA three months from receipt of the application or of the last information it needs, inside an overall cap of twelve months, and Article 9 requires the business to start within twelve months of the decision. Two Andorran features stand out. The applicant lodges a non-remunerated deposit with the AFA - 10% of share capital, EUR 70,000 for an EMI on the AFA's forms - refunded within twenty working days of refusal or launch. And Article 70 of Law 7/2013 asks for at least one office in the country and for a fifth of the staff to be Andorran nationals or two-year residents. Client funds cannot be commingled and move to a separate bank account, low-risk assets or an insurance cover by the end of the next business day; Article 72.4 allows the protection to be limited to balances above EUR 600 per user. The AFA's 2026 tariff prices creation at EUR 7,367 and annual supervision at EUR 615 to 3,685 per service. Corporate tax is 10%, IGI 4.5%. One payment institution is active on the register and no EMI - a market of 90,000 people, but a SEPA member since 2019. We build the file from our Iberia desk in Madeira; plan on six to nine months.
Law 8/2018 (recast June 2026) and Law 7/2013 Articles 60-73: PI capital EUR 20,000 / 50,000 / 125,000, EMI EUR 350,000 (Article 66). The AFA decides within three months of a complete file (Law 35/2010 Art. 5.6). Creation fee EUR 7,367; deposit of 10% of capital during the procedure.
Funds protected by the next business day (Art. 8). Office in Andorra, a fifth of staff local (Art. 70). SEPA since 2019. 10% tax, IGI 4.5%. Six to nine months realistic. We run it from Madeira.
The routes
Payment institution or e-money institution - or the exempted small provider.
Three depths under Law 8/2018: the authorised payment institution, the authorised e-money institution on EUR 350,000, and an exemption for Andorran companies below EUR 3 million of average monthly volume that register instead. We fix the route first, then build once.
Payment institution or EMI - exempted small provider below EUR 3M a month.
01 - PAYMENT INSTITUTION
Entitat de pagament
Authorisation by the AFA under Law 35/2010 for the payment services of Law 8/2018 - EUR 20,000, 50,000 or 125,000 of capital under Article 66 of Law 7/2013, own funds by the volume method, a three-month decision from a complete file, a EUR 7,367 creation fee and annual supervision priced per service.
Authorisation by the AFA under Law 35/2010 for the payment services of Law 8/2018 - EUR 20,000, 50,000 or 125,000 of capital under Article 66 of Law 7/2013, own funds by the volume method, a three-month decision from a complete file, a EUR 7,367 creation fee and annual supervision priced per service.
- ✓All PSD2-style payment services, singly or combined
- ✓Capital EUR 20,000 / 50,000 / 125,000 (Law 7/2013 Art. 66)
- ✓Own funds by the volume method × k (0.5 / 0.8 / 1)
- ✓Decision within 3 months of a complete file (Law 35/2010 Art. 5.6)
- ✓Creation fee EUR 7,367 · annual EUR 615-3,685 per service
- ✓Funds protected by the end of the next business day (Art. 8)
02 - E-MONEY INSTITUTION
EMI - EUR 350,000Entitat de diner electrònic
Authorisation to issue e-money and provide payment services alongside it - share capital of at least EUR 350,000, own funds of 2% of average e-money in circulation, redemption at par under Article 31, no interest under Article 32, and a EUR 70,000 deposit with the AFA during the procedure.
EMI: EUR 350,000 capital; own funds 2% of e-money; redemption at par, no interest; no issuance via agents; EUR 3,685 annual fee.
- ✓E-money issuance plus payment services
- ✓Capital EUR 350,000 (Law 7/2013 Art. 66)
- ✓Own funds 2% of average e-money outstanding
- ✓Redemption at par at any time · no interest on balances
- ✓No issuance through agents - distribution and redemption only
- ✓Annual supervision EUR 3,685 (2026 tariff)
Costs and timelines are confirmed for your case before any work begins. The EUR 7,367 creation fee and the annual tariff are printed in the AFA's technical communication 1/2026; the deposit, safeguarding set-up and substance are itemised in your quote.
Why Andorra
A euro licence outside the EU, priced in a published tariff.
Andorra sells something rare: a PSD2-pattern authorisation, SEPA membership and a 10% rate from a country that is not bound by EU passporting either way. What it asks in return is real presence.
✓
Three months, in the law
Law 35/2010 gives the AFA three months from a complete file to decide on a payment or e-money institution, inside a twelve-month overall cap.In Law 35/2010; 12-month cap.
✓
EUR 7,367 to create
The AFA's tariff for 2026 prices the creation of a payment or e-money institution and lists the annual supervision fee per service - no negotiation, no surprise.Creation fee, in the tariff.
✓
PSD2 capital
EUR 20,000, 50,000 or 125,000 for a payment institution and EUR 350,000 for an EMI under Article 66 of Law 7/2013 - the directive's floors, in the euro Andorra already uses.EUR 20k-125k PI, 350k EMI.
✓
SEPA since 2019
Andorra joined the Single Euro Payments Area by decree of 24 April 2019, so euro credit transfers and direct debits reach a licensee's clients on SEPA terms.Euro reach without the EU.
✓
10% and 4.5%
Corporate tax at 10% and IGI at 4.5% - among the lightest cards in Europe, with dividends to non-resident companies exempt from non-resident tax under the 2010 law as enacted.Corporate tax and IGI.
✓
An empty EMI register
One active payment institution and no e-money institution on the AFA register - a supervisor that will read your file as the first of its kind.First of its kind.
How it compares
How Andorra differs from other routes.
Andorra trades the EEA passport for a euro licence with a low rate and a printed price. The honest comparison is below.
Andorra vs other jurisdictions
| Feature |  Andorra | Other jurisdictions |
|---|---|---|
| Capital | EUR 20,000-125,000 PI · 350,000 EMI | Same PSD2 floors in the EU |
| Passport | None - SEPA member, no EEA passport | EEA passport from EU states |
| Creation fee | EUR 7,367 printed | EUR 0 to 10,400 |
| Corporate tax | 10% · IGI 4.5% | 12.5-25.8% |
Capital
AndorraEUR 20,000-125,000 PI · 350,000 EMI
Other jurisdictionsSame PSD2 floors in the EU
Passport
AndorraNone - SEPA member, no EEA passport
Other jurisdictionsEEA passport from EU states
Creation fee
AndorraEUR 7,367 printed
Other jurisdictionsEUR 0 to 10,400
Corporate tax
Andorra10% · IGI 4.5%
Other jurisdictions12.5-25.8%
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| Andorra | PI / EMI (AFA) | 10% | EUR 20k-125k · EMI EUR 350k · 3 months |
 Liechtenstein | PI / EMI (FMA) | 12.5% flat | CHF 125,000 · EMI EUR 350,000 · EEA passport |
 Gibraltar | PI / e-money (GFSC) | 15% local | EUR 125,000 · EMI EUR 350,000 or 2.2% |
 Spain | PI / EMI (Banco de España) | 25% | PSD2 floors · EEA passport |
AndorraLicense typePI / EMI (AFA)
Taxation10%
RequirementsEUR 20k-125k · EMI EUR 350k · 3 months
LiechtensteinLicense typePI / EMI (FMA)
Taxation12.5% flat
RequirementsCHF 125,000 · EMI EUR 350,000 · EEA passport
GibraltarLicense typePI / e-money (GFSC)
Taxation15% local
RequirementsEUR 125,000 · EMI EUR 350,000 or 2.2%
SpainLicense typePI / EMI (Banco de España)
Taxation25%
RequirementsPSD2 floors · EEA passport
Before you apply
Requirements for the AFA authorisation.Requirements for the authorisation.
Law 35/2010 sets the procedure, Law 7/2013 the prudential conditions and the AFA's Forms 5 and 6 the documents. The checklist below is what a passing file contains.
01
An Andorran SA or SL under Article 62 of Law 7/2013, with registered office and head office in the Principality under Article 64.
02
Capital at the Article 66 tier - EUR 20,000, 50,000 or 125,000 for a payment institution, EUR 350,000 for an e-money institution - and own funds never below four-fifths of it under Article 71.
03
The non-remunerated deposit with the AFA under Article 8 of Law 35/2010 - 10% of share capital, EUR 70,000 for an EMI on the AFA's forms - refunded within twenty working days of refusal or launch.
04
A board of at least three members of recognised integrity, a majority with adequate knowledge and experience, and a chair who is not the managing director (Article 67).
05
At least one office in Andorra and a fifth of the staff Andorran nationals or residents of two years or more (Article 70).
06
Compliance, risk-management and internal-audit functions, IT-security and outsourcing policies, and three-year projections, as Forms 5 and 6 require.
07
Safeguarding under Article 8 of Law 8/2018: no commingling, funds on a separate bank account, in low-risk assets or under an insurance cover by the end of the next business day.
08
Professional indemnity insurance for payment-initiation or account-information services under Article 13 of Law 35/2010.
09
Shareholders disclosed with the origin of funds reported to UIFAND, Andorra's financial intelligence unit, under Article 18.
10
A plan to start business within twelve months of the authorisation under Article 9 of Law 35/2010.
01
Andorran SA or SL, head office in Andorra.
02
Capital EUR 20k / 50k / 125k or EMI EUR 350k.
03
AFA deposit 10% of capital (EMI EUR 70,000).
04
Board of 3+, chair not the MD (Art. 67).
05
Office in Andorra; 20% local staff (Art. 70).
06
Compliance, risk, internal audit, IT policies.
07
Safeguarding by next business day (Art. 8).
08
PII for PIS/AIS.
09
Origin of funds reported to UIFAND.
10
Start within 12 months (Art. 9).
Reflects Law 8/2018 (recast in force 4 June 2026), Law 7/2013 Articles 60-73, Law 35/2010 (recast 8), the AFA's Forms 5 and 6 and its technical communication 1/2026 on fees, as of 2026.Law 8/2018 (recast 2026); Law 7/2013 Arts. 60-73; Law 35/2010; AFA Forms 5-6; CT 1/2026-AFA.
How it works
From first call to the AFA register.
01
Route and strategy
PI, EMI or the exempted small provider; service list and capital tier - the route and budget fixed in writing.PI, EMI or exempted - in writing.
02
Company, capital, deposit
Andorran SA or SL formed, capital paid, the AFA deposit lodged, board and shareholders documented.Formed, paid, lodged.
03
The application file
Form 5 or 6 with projections, own funds, safeguarding, policies and the UIFAND report - complete before filing.Form 5 or 6, complete.
04
AFA review
The three-month clock from a complete file within the twelve-month cap, question rounds answered - plan on six to nine months end to end.3 months; 6-9 months realistic.
05
Authorisation and launch
Authorisation granted, deposit refunded within twenty working days, register entry made - business started inside the twelve-month window.Deposit refunded; start in 12 months.
Quick facts
RegulatorAFA
LawLaw 8/2018 · Law 7/2013 · Law 35/2010
LicencePI · EMI · exempted small provider
CapitalEUR 20k / 50k / 125k · EMI EUR 350k
Decision3 months · 12-month cap
FeeEUR 7,367 creation
Timeline6-9 months realistic
Corporate tax10% · IGI 4.5%
The clock is in the law and the price in the tariff. What keeps the review inside three months is a file the AFA finds complete on arrival, and that is our job.
Your Andorra desk
Run from our Iberia desk.
Prifinance - Iberia desk
Madeira · coordinating Andorran mandates in Spanish and Catalan
Rua da Alegria 31, 1F, Madeira
01
Andorran company formation
An SA or SL with registered and head office in the Principality, capital to the Article 66 tier and the board Article 67 describes - structured for the licence from day one.SA or SL, capital tier, board.
02
The AFA file
Forms 5 or 6, projections, own funds, safeguarding, policies and the UIFAND origin-of-funds report - drafted by us, filed through the AFA's Virtual Office and defended through the three-month review.Forms 5-6 via the Virtual Office.
03
Deposit and safeguarding
The AFA deposit lodged and the separate safeguarding account opened before launch, and SEPA reach planned with the licence.Lodged and opened before launch.
04
Substance in Andorra
The office, the local hires Article 70 requires and the directors who pass the AFA's assessment - the presence the authorisation is built on.Office, local staff, directors.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
London
United Kingdom
7 Bell Yard
Dubai
UAE
33 Level, Al Saqr Business Tower
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of payment companies in Andorra.
A 10% corporate rate, a 4.5% general indirect tax, and no non-resident tax on dividends paid to foreign companies under the 2010 law as enacted - one of the lightest cards in Europe.
Corporate tax 10%
The general rate of the impost de societats on a licensee's fee and margin income; a minimum quota rule applies since the 2023 reform.Minimum quota since 2023.
IGI 4.5%
Andorra's indirect tax at a 4.5% general rate, with reduced rates for listed supplies; the treatment of payment fees is mapped before launch.Reduced rates for listed supplies.
Dividends to non-resident companies
Article 15 of Law 94/2010 exempts income from movable capital, dividends included, received by non-resident entities; the treatment of non-resident individuals is confirmed per structure.Exempt to non-resident companies.
Non-resident tax 10%
The general IRNR rate on other Andorran-source income paid abroad, with 1.5% for reinsurance and 15% on speculative gains since 2023.Other outbound income.
Payroll
Income tax and CASS social contributions on Andorran salaries - the operating budget prices in the local hires Article 70 requires.Income tax + CASS.
Treaties
A treaty network that includes Spain, France, Portugal and Luxembourg - outbound flows to the parent are planned with the licence.Spain, France, Portugal, Luxembourg.
Tax summary
Corporate tax10%
IGI (indirect tax)4.5% general
Dividends to non-resident companiesExempt (Law 94/2010 Art. 15)
Non-resident tax10% general
PayrollIncome tax + CASS
Tax treatiesSpain, France, Portugal, Luxembourg and more
*Figures as of 2026 per the Andorran tax administration. Treaty and regime positions are assessed per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Andorran SL, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live, licensed institution.
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Andorra · AFA
Launch your payment project in Andorra with expert support.
Full-service assistance - from company formation to the AFA authorisation, the deposit, safeguarding, SEPA reach and ongoing compliance.
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The Andorran payment licence, answered.
What licence does a payment business need in Andorra?+
Authorisation by the Autoritat Financera Andorrana as an entitat de pagament for the payment services of Law 8/2018, or as an entitat de diner electrònic if you issue stored value. Andorran companies below EUR 3 million of average monthly volume over the previous twelve months may be exempted from authorisation under Article 6.2 and register instead.
How much capital is required?+
Article 66 of Law 7/2013: EUR 20,000 for money remittance, EUR 50,000 for payment execution through telecom or digital devices where the operator only intermediates, EUR 125,000 for the other services; share capital of at least EUR 350,000 for an e-money institution. Own funds may never fall below four-fifths of the minimum.
How long does the AFA take?+
Article 5.6 of Law 35/2010 gives it three months from receipt of the application or of the last information it needs, within an overall cap of twelve months. Plan on six to nine months from first call to authorisation; business must start within twelve months of it.
What does it cost?+
The AFA's tariff for 2026 sets a creation fee of EUR 7,367 for a payment or e-money institution, annual supervision of EUR 615 to 3,685 per payment service and EUR 3,685 for an EMI, and EUR 527 for a payment-service notification. A deposit of 10% of share capital is lodged with the AFA during the procedure and refunded afterwards.
How are client funds protected?+
Under Article 8 of Law 8/2018 they may never be commingled; by the end of the business day after receipt they go to a separate account at a bank, into secure low-risk assets, or under an insurance or comparable guarantee. Article 72.4 of Law 7/2013 lets the protection be limited to balances above EUR 600 per user.
Does the licence passport?+
No - Andorra is outside the EU and the EEA, so there is no passport in either direction. It is a SEPA member since 2019, which gives euro payments reach. Groups needing the EU pair it with a member-state licence; we sequence the two.
How are payment companies taxed?+
Corporate tax at 10%, IGI at 4.5%, and no non-resident tax on dividends paid to non-resident companies under Article 15 of the 2010 law as enacted; other outbound income carries 10%.
What substance does the AFA expect?+
Real presence: an SA or SL with head office in Andorra, a board of at least three with a chair who is not the managing director, at least one office in the country, a fifth of the staff Andorran nationals or two-year residents, and compliance, risk and internal-audit functions in place.
Can an EMI use agents?+
Not to issue e-money - Law 8/2018 forbids issuance through agents, though third parties may distribute and redeem it. Payment institutions may use agents, which the AFA verifies and registers under Article 73.
Why Andorra rather than Liechtenstein or Gibraltar?+
Andorra has the lowest tax card of the three and a euro licence without the EU; Liechtenstein offers the EEA passport in Swiss francs; Gibraltar UK market access. Groups serving Iberian and French clients from a low-tax euro base start here.
Which licence?+
AFA PI or EMI; exemption below EUR 3M a month.
Capital?+
EUR 20k / 50k / 125k; EMI EUR 350k.
How long?+
3 months from a complete file; 6-9 months realistic.
Cost?+
EUR 7,367 creation; EUR 615-3,685 annual per service.
Client funds?+
Separate account by next business day.
Passport?+
No - SEPA member only.
Taxes?+
10%, IGI 4.5%; dividends to companies exempt.
Substance?+
Office, 20% local staff, board of 3+.
EMI agents?+
No issuance via agents; distribution allowed.
vs Liechtenstein / Gibraltar?+
Lowest tax; euro without the EU.
Client notes
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Andorran route fits your project and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right licence scope, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of the Autoritat Financera Andorrana or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.