EU Monetary Agreements with Andorra and San Marino: What Changes for Companies in 2026

Key data

Companies and financial entities operating with Andorra or San Marino face a new regulatory framework on the horizon. Decision (EU) 2026/2030, adopted by the European Commission on September 10, 2026 and published on September 11, authorizes the signature of the conventions that modify the current monetary agreements with the Principality of Andorra and the Republic of San Marino.

These two countries use the euro as their official currency, but are not member states of the eurozone. Their use of the euro is regulated by specific agreements with the EU that are now being updated. This decision is the formal prior step to the signature and subsequent ratification of the amended conventions.

What does this regulation establish?

The monetary agreements between the EU and these two territories establish the conditions under which Andorra and San Marino can issue euro coins and must adopt the financial and regulatory standards of the EU applicable in their respective territories.

Decision (EU) 2026/2030 formally authorizes the signature of the amending conventions to both agreements. The changes introduced by these modifications affect two main areas:

• Conditions for euro coin issuance: The rules under which Andorra and San Marino can mint and put into circulation coins denominated in euros are updated.
• Adoption of EU financial and regulatory standards: Both territories must incorporate and apply current European financial standards, thereby strengthening regulatory alignment with the internal market.

This decision is a prior step to the formal signature of the conventions and their subsequent ratification. The definitive entry into force of the modifications is not specified in this decision and will be determined in the ratification process.

Economic and operational impact

The direct impact of this decision is regulatory and compliance-related, not economic in terms of new explicit fees or sanctions. However, it has real operational consequences for those operating in these territories:

• Greater regulatory alignment: Companies operating in Andorra or San Marino will see these territories progressively adopt more EU financial standards, which can simplify cross-border operations but also requires updating compliance procedures.
• Financial transactions: The strengthening of regulatory alignment affects how payments, transfers and financial operations with counterparties in these countries are managed.
• Issuance of collectible coins: Entities and collectors operating with euro coins issued by Andorra or San Marino must be aware of the new issuance conditions that will result from the amended conventions.
• Review of contracts and procedures: Financial entities with exposure to these territories will need to review their internal procedures to ensure they reflect the new regulatory framework once the conventions are ratified.

Who does it affect?

• Financial entities (banks, insurance companies, fund managers) with activity or counterparties in Andorra or San Marino.
• Companies with commercial operations in the Principality of Andorra or the Republic of San Marino.
• Tax and legal advisors providing services to clients with presence in these territories.
• Citizens and individuals with bank accounts, investments or regular economic activity in Andorra or San Marino.
• Collectors and distributors of euro coins issued by these territories.
• Compliance departments of entities operating in the euro monetary area with presence in these countries.

Practical example

A Spanish financial entity that manages accounts for clients resident in Andorra or that has correspondent agreements with Andorran banks will need, once the amending conventions are ratified, to review its regulatory compliance procedures to verify that the EU financial standards that Andorra is obliged to adopt are correctly reflected in its due diligence processes and in contracts with its Andorran counterparties.

Similarly, a Spanish company with a subsidiary in San Marino that makes euro payments between both entities must be alert to the regulatory changes that San Marino will incorporate as a result of the ratification of the amending convention, especially regarding financial standards and money laundering prevention.

What should companies do now?

1. Identify exposure: Determine whether your company or entity has economic activity, financial counterparties or existing contracts in Andorra or San Marino.
2. Monitor the ratification process: This decision authorizes the signature, but the amending conventions still need to be ratified. Follow the progress in the EU Official Journal to learn the date of definitive entry into force.
3. Review compliance procedures: Compliance departments must anticipate that Andorra and San Marino will incorporate new EU financial standards and update their due diligence procedures accordingly.
4. Consult with specialized advisors: If you have contracts, accounts or corporate structures in these territories, consult with a legal or tax advisor specialized in European law to assess the concrete impact of the changes once the final texts of the conventions are published.
5. Update contracts if necessary: Once the conventions are ratified, review whether contracts with counterparties in Andorra or San Marino reference standards that may be modified by the new agreements.

Official source

Consult complete regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202602030