Andorra's currency is the euro: paying, withdrawing cash and what to avoid

Andorra runs on euros, and that’s the only simple part. The country uses the European currency without being in the European Union, mints its own euro coins and has three banks of its own. For a British visitor it means paying much as you would in Spain or France, with a few wrinkles worth knowing before you tap your card. Most of them come down to one fact, that Andorra sits outside the EU, and your bank, your phone company and customs all notice.

From francs and pesetas to the euro

Andorra has never had a currency of its own. Andorra Turisme explains that before the euro the Spanish peseta and the French franc circulated side by side, and that the euro has been legal tender since it came into force in 2002. You may see 2001 quoted somewhere; the notes and coins arrived in 2002, and that’s the date I use.

In 2011, according to Spain’s Foreign Ministry, Andorra signed a monetary agreement with the EU, and since 2014 it has minted its own euros in four designs, listed in the table. They’re as good in Barcelona or Toulouse as any other euro coin. My favourite is the €1, with the Casa de la Vall on it.

Can you pay by card?

Almost everywhere. The tourist board says cards are accepted in all kinds of shops, and that’s what I’d use for shops, restaurants, petrol stations and hotels. For the national bus or a coffee in a village bar, a bit of cash is handy.

The catch is on your card provider’s side. Andorra isn’t an EU member state, and your bank may treat payments and withdrawals there as outside Europe, with fees you wouldn’t pay in France or Portugal. I can’t tell you what each UK bank charges, since it depends on your account, but I’d check in the app before crossing the border. The same logic applies to your phone, covered in roaming in Andorra.

Cash machines and banks

Cash machines belong to the country’s three banks, Andbank, Creand and Morabanc. If your card charges per withdrawal, take out a sensible amount once rather than small sums five times.

Pounds or euros at the till?

This is the trap I’d watch hardest with a UK card, in Andorra as anywhere in the eurozone. If the terminal offers a choice between pounds and euros, stick with euros. Go for pounds and the exchange rate is set by the merchant’s payment provider rather than your own bank. There’s no specific Andorran warning about this that I could find, so take it as my advice rather than a local rule. Other traps are covered in Andorra scams.

And if you’ve got pounds in your wallet, change them before you go. According to Andorra Turisme, most places won’t take anything but euros.

The tourist tax on your hotel bill

One cost catches people out when they check out. Since 1 July 2022, every regulated place to stay charges a tourist tax per person per night from the age of 16, capped at seven nights. It ranges from €1 in the simplest accommodation to €3 in five-star hotels, plus 4.5 % IGI. A couple spending a week in a four-star hotel pays €28 plus that tax, which is worth factoring in when you compare prices. Every band is set out in Andorra’s tourist tax.

Bringing cash and shopping back

If you’re driving home through Spain, cash of €10,000 or more must be declared to customs, as the Spanish Tax Agency’s leaflet for travellers from Andorra explains. The bigger issue for most people is what they’ve bought. Because Andorra is outside the EU, goods are subject to allowances when you re-enter France or Spain, and gov.uk warns that you may have to pay duty on tobacco, spirits and luxury goods. The limits are in Andorra duty-free allowances.

What I’d do

Bring a card with no fees abroad if you have one, a little euro cash and a clear idea of what you plan to buy. Do that and paying in Andorra is as easy as anywhere in Spain, and the only nasty surprise left is a card statement you didn’t check the terms of. What things cost once you’re there, from the bus to the tourist tax, is gathered in Andorra prices.