15/10/2026
Panama Is Off the EU Tax Blacklist. What Does That Mean for Business?
On 9 October, the EU removed Panama and Vietnam from its list of non-cooperative tax jurisdictions.
Panama had been on the list since February 2020. The change follows reforms to its tax regime for foreign-source income and progress on international tax transparency.
So, does this make Panama a more attractive place to register a company?
Potentially, but there’s more to consider.
The EU’s main blacklist is Annex I. Being included can trigger defensive tax measures in EU member states, although the measures depend on each country. Panama has now moved to Annex II, where its compliance with international standards on exchanging tax information remains under review.
For entrepreneurs, this change is worth considering when reviewing an international company structure. A jurisdiction’s status can affect tax treatment and compliance obligations, but it doesn’t determine whether a structure is right for your business.
Before choosing where to incorporate, look at your tax residency, where your clients are based, banking requirements and the substance your company needs to maintain.
Thinking about setting up a company abroad? Let’s talk!