Andorra, popular among tax evaders, to introduce income tax
A photo taken on April 2, 2013 shows the flag of the Andorra principality in Andorra La Vella.
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."
More from GlobalPost: US Senate accuses Apple of avoiding $9B in US taxes
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.
The article you just read is free because dedicated readers and listeners like you chose to support our nonprofit newsroom. Our team works tirelessly to ensure you hear the latest in international, human-centered reporting every weekday. But our work would not be possible without you. We need your help.
Make a gift today to help us reach our $25,000 goal and keep The World going strong. Every gift will get us one step closer.