Andorra, popular among tax evaders, to introduce income tax

For the first time, the tiny European nation of Andorra plans to introduce a personal income tax.

Andorra is nestled between Spain and France and has a population of 84,000. Andorra has a reputation for banking secrecy, as the New York Times reported several years ago, making it an especially popular destination for tax evaders.

The anti-tax blog EscapeArtist has previously recommended Andorra as "a residential tax haven for very wealth foreigners who enjoy winter sports,"  adding that "there is no income or estate taxes for anyone and banking privacy is very strict."

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But the European Union has been pressuring Andorra's parliament to make some changes. 

On Friday, Antoni Marti, the head of Andorra's government, met with French President Francois Hollande to discuss potential changes.

Afterward, Marti announced that he would present a bill to the Andorran parliament by June 30 that would establish some sort of personal income tax, the French government announced on its website. 

While so far short on specifics, Marti promised the plan would "progressively bring its tax system in line with international standards," the Daily Telegraph reported.

Tax evasion is  estimated to cost European states as much as $1.3 trillion a year.