Andorra might be unknown to many people mostly due to its small size, but it’s certainly well known by a lot of wealthy people. The reason for that is that Andorra has currently no income taxation by law, for both individuals and corporations. This fact single-handedly has made of Andorra one of the most desirable and wanted tax havens in the World. However, things could change very soon…
Andorra‘s prime-minister Antoni Martí has allegedly said to François Hollande (co-prince of Andorra) that he has serious intentions of introducing an income tax to the European microstate. The proposal will be presented to the Parliament before June 30, according to a press released issued by the “Elysee Palace“.
Part of the statement made note of the following: “This law is included in a pack of decisions that were already made by the Principality, as part of an attempt to make Andorra‘s tax laws to converge with the European ones”.
François Hollande has reacted positively to the Andorran Government‘s intentions of starting a debate with the European Union concerning the main goal of reviewing the way savings are being taxed, as well as and in a reasonable deadline, allowing the exchange of information with other members of the European Union.
The French President also stated: “The co-prince of Andorra has requested to pursue with the reforms in order to modernize the Andorran economy and allow the country to find, in an European context, the right path for growing.”