Making payments from Andorra to other European countries has become easier since our small country joined the Single Euro Payments Area (SEPA). Andorra is now able to enjoy the same benefits as the other states which comprise this zone.
What is SEPA?
The Single Euro Payment Area, or SEPA, was launched in 2008. It enables individuals, companies and institutions to make and receive cashless international bank payments in a fast, safe and efficient way, just like national payments. The SEPA consists of 36 European countries: the whole of the European Union plus Iceland, Liechtenstein, Monaco, Norway, San Marino and Switzerland. The Vatican City State and Andorra are the most recent additions, joining this area in March 2019 and becoming operational on 1st January 2020.
Benefits of belonging to the Single Euro Payments Area
All countries in the SEPA share standards that govern the banking processes for issuing and receiving payments from a single account, both nationally and internationally. This means that all banks operate under the same conditions, which makes everything easier and safer. Standardising processes has also improved the efficiency of these services. Another advantage is that the barriers preventing the execution of international payments in euros have obviously disappeared.
So if you have set up a company in Andorra, it will be much easier and quicker to make transfers or direct debits to other companies or institutions located in the SEPA, as the procedures have now been simplified.
What types of payments can be made?
You can make SEPA credit transfers and direct debits in euros under the same conditions both within and between SEPA countries.
By joining SEPA, Andorra has created opportunities for international companies that wish to establish themselves in the country. With a view to opening up to international markets, Andorra also became a member of the International Monetary Fund a few months ago. To find out more about Andorra’s membership of the IMF, you can read our post here.