Panama Removed from EU Tax Blacklist: What It Means for the Country's Future
As of 9 October 2026, Panama has been removed from the European Union's tax blacklist, marking an important step in restoring confidence in the country's international tax framework.
Panama's removal from the European Union's tax blacklist on 9 October 2026 marks an important milestone for the country's international reputation and economic relations. The decision recognises progress in addressing European concerns about tax transparency, international cooperation and the country's tax framework.
Background
Panama had been included on the EU's list of non-cooperative jurisdictions for tax purposes since February 2020. Concerns included aspects of its taxation of foreign-source income and compliance with international tax standards. In response, Panama introduced reforms, including new economic substance rules intended to ensure that businesses claiming certain tax benefits meet applicable requirements.
The EU's decision moves Panama from its blacklist, known as Annex I, to Annex II, the list for jurisdictions cooperating with the EU while certain matters remain under review.
Why it matters
Removal from the blacklist can reduce tax-related obstacles in dealings with EU member states and strengthen confidence among international investors, financial institutions and business partners. It could also support Panama's efforts to attract investment and reinforce its position as a regional financial and logistics hub.
Panama's President José Raúl Mulino celebrated the decision. “Panama is off the blacklist, we did it!" Mulino said in a video on X. "Today, with this great victory, we are opening the door to new investments. We are becoming more competitive and creating real opportunities for Panamanians.”
What's next
Looking ahead, Panama's priority will be to demonstrate that its reforms work in practice. An assessment by the OECD Global Forum of its framework for exchanging tax information will be particularly important. A positive outcome could help Panama secure removal from the EU's monitoring list in the future.
Overall, the decision represents a significant step forward for Panama. It recognises progress in international tax cooperation while preserving the fundamentals of the country's territorial tax system. Sustained progress on transparency and international cooperation will be essential to turn this achievement into lasting economic benefits and stronger international confidence.
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