As of 2018, Andorra and EU Member States will automatically exchange information on the financial accounts of one another's residents. This will ensure that both sides are better equipped to detect and pursue tax evaders, who will no longer be able to exploit bank secrecy to hide income and assets abroad.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: "Today's agreement will throw a powerful spotlight on those who try to escape taxation by hiding their money abroad. It also introduces a new level of openness and cooperation between Andorra and the EU in taxation. I warmly congratulate Andorra on the important step it has taken today."
Under the new agreement, Member States will receive the names, addresses, tax identification numbers and dates of birth of their residents with accounts in Andorra, as well as other financial and account balance information. This is fully in line with the EU's work to increase tax transparency and tackle tax avoidance and evasion as well as the OECD/G20 global standard for the automatic exchange of information. The EU has already signed similar agreements last year with Switzerland, Liechtenstein and San Marino, while negotiations are also being finalised with Monaco.