Andorra is poised to introduce a tax on personal income for the first time, effectively putting an end to its status as a tax haven as it faces pressure from the its European neighbors to tackle tax evasion.

Antoni Marti, the head of the Andorran government, announced the move during a Paris meeting with French President Francois Hollande.

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He said he would present a bill to the Andorran parliament by June 30 that would create a tax on personal income as part of an effort to "progressively bring its tax system in line with international standards".

There is currently no income tax applied to individuals or corporations.

EU finance ministers are to start talks with Andorra, Switzerland, Liechtenstein, Monaco, and San Marino on swapping bank-account data.

Tax evasion costs EU states EUR1 trillion a year.

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Hollande was meeting with Marti in Paris in his role as one of the two co-monarchs of Andorra, which is situated in the Pyrenees mountains between France and Spain.