Debt in Andorra

The Catalan terms deute and obligació de pagament describe money or another performance owed to a creditor. Impagament means non-payment; mora can lead to recàrrecs and interessos moratoris. Creditors may seek payment privately or use the via de constrenyiment and embargament when an enforceable title permits formal enforcement. Before taking consumer or mortgage credit, check whether the provider is authorised and listed by the AFA. Llei 7/2013 regulates consumer and mortgage credit. Consumers can request a pre-contractual information form and should compare the full price, interest, repayment schedule, fees and contractual terms. The Servei d'Atenció al Consumidor provides free assistance. It can address consumer issues, but it does not replace a court ruling on contractual damages or abusive clauses. Debt management depends on the creditor and the type of debt. A private creditor may agree to restructuring, ajornament or fraccionament, but Andorra has no evidenced universal statutory right to private-debt instalments. Tax debt is handled by the Departament de Tributs i Fronteres through form H5G077. An arrangement may cover the full debt, including interest, recàrrecs and costs, and usually requires a guarantee unless the authority dispenses with it. A personal joint surety may be used for amounts up to 10,000 EUR, while a guarantee may be dispensed with for amounts up to 2,500 EUR when the conditions are met. Other administrative debts require a request to the responsible department. CASS contributions can be deferred or paid by instalments after a signed email or appointment; the request covers the debt, recàrrecs, interest and costs, and collection resumes if an instalment remains unpaid. CASS contributions are generally due within 15 calendar days after the end of the relevant month. A financial complaint normally goes first to the institution's customer service. If there is no response within one month, the complaint can go to the AFA. The AFA's report is not binding and does not decide contractual damages, abusive clauses or matters reserved for the courts. Free legal aid is available to Andorran nationals and people with a valid residence or work permit who demonstrate financial hardship or insolvency. It can cover civil or administrative proceedings, including enforcement, with exemptions such as court fees, deposits, expert costs and the saig's advance; an improvement in income or assets must be reported. After an enforceable title, payment may be demanded through the court, an administrative authority or a saig. Enforcement can seize funds, bank accounts, movable or immovable property, wages and professional income. A saig can generally carry out a seizure no later than five working days after the order. The debtor bears enforcement costs, and an order can be challenged. Up to one minimum wage is protected from wage seizure; 50% of the tranche between one and two minimum wages can be attached, while income above two minimum wages can be fully attached. Each dependant reduces the 50% tranche by 10 percentage points, subject to the alimony exception. Concealing or disposing of assets to frustrate enforcement can create criminal liability, including imprisonment from three months to three years. Commercial insolvency uses the terms cessació de pagaments, arranjament judicial and fallida. A trader generally applies to the Batllia within eight working days after a general cessation of payments, although a creditor or the Batlle may also initiate proceedings. The Batllia publishes the proceeding in the BOPA, and creditors normally have 30 working days to submit claims. Individual actions are suspended except for privileged or secured claims. The debtor loses administration and disposal of assets, and a trader may be barred from managing commerce until rehabilitation. If a serious viable agreement exists, the court may approve an arranjament judicial; otherwise the matter proceeds as fallida. No general insolvency procedure for non-traders has been evidenced. Afers Socials provides primary social services across the parishes. Economic or housing assistance can prevent arrears but does not cancel debt. The 2026 rental-aid rules require five years of legal and effective residence, income at or below 1.2 LECS and a tenant contribution of 30% or 35% of rent, depending on the applicable conditions. At the macroeconomic level, IMF data for 2026 place private-sector credit at 90.5% of GDP, with households at 41.7% and companies at 48.8%; non-performing loans were 2.0% in 2025. Public debt was 30.3% of GDP in 2025 and is projected at 28.0% in 2026. These figures describe Andorra's financial system and public finances, not an individual right to debt relief.