{"id":6749,"date":"2026-10-13T11:08:41","date_gmt":"2026-10-13T16:08:41","guid":{"rendered":"https:\/\/www.lacgrp.com\/?p=6749"},"modified":"2026-10-13T11:42:59","modified_gmt":"2026-10-13T16:42:59","slug":"en-panama-removed-eu-tax-blacklist-2026","status":"publish","type":"post","link":"https:\/\/www.lacgrp.com\/en\/en-panama-removed-eu-tax-blacklist-2026\/","title":{"rendered":"Panama Removed from EU Tax Blacklist: What the Move to Annex II Means"},"content":{"rendered":"\n

Panama\u2019s move to Annex II marks progress in tax cooperation, with an information exchange review still pending.<\/strong><\/p>\n\n\n\n

Panama is no longer on the European Union\u2019s tax blacklist following the Council\u2019s October 9, 2026 announcement.<\/strong> The country has moved from Annex I\u2014the EU list of non-cooperative jurisdictions for tax purposes\u2014to Annex II.<\/p>\n\n\n\n

For international businesses and advisers working with Panamanian entities, the key distinction is that removal from the blacklist does not end the review process.<\/p>\n\n\n\n

Why Did the EU Remove Panama from Its Tax Blacklist?<\/strong><\/h2>\n\n\n\n

The Council\u2019s official announcement<\/a> identifies two developments: reform of Panama\u2019s foreign-source income exemption regime and approval of a new OECD Global Forum review of tax information exchange on request.<\/p>\n\n\n\n

Panama will remain in Annex II pending that review.<\/p>\n\n\n\n

For the domestic regulatory context, our analysis of Panama\u2019s economic substance framework under Law 526 and Executive Decree 32 of 2026<\/a> explains the requirements relevant to affected entities.<\/p>\n\n\n\n

Is Panama Still on an EU Tax List?<\/strong><\/h2>\n\n\n\n

Yes. Panama has left Annex I but remains in Annex II, which records cooperation and commitments toward agreed tax governance standards.<\/p>\n\n\n\n

Question<\/strong><\/td>October 2026 position<\/strong><\/td><\/tr>
Is Panama on the EU tax blacklist?<\/td>It has been removed from Annex I.<\/td><\/tr>
Is Panama still under review?<\/td>Yes, through Annex II.<\/td><\/tr>
What remains pending?<\/td>A new review of tax information exchange on request.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Why the Announcement Matters for International Business<\/strong><\/h2>\n\n\n\n

Panama\u2019s Ministry of Economy and Finance<\/a> described the decision as a development that strengthens international confidence and improves conditions for investment. It attributed the result to technical work, diplomatic efforts and private-sector support.<\/p>\n\n\n\n

For businesses, the practical question is how the updated status interacts with the rules governing their transactions. Where a tax provision, contractual clause or internal risk policy refers to the EU list, its wording and applicable law should be checked before drawing conclusions.<\/p>\n\n\n\n

An international tax review<\/a> can help distinguish the significance of the announcement from its consequences for a particular company or investment.<\/p>\n\n\n\n

What Should Groups with Panamanian Entities Review?<\/strong><\/h2>\n\n\n\n

The announcement provides a useful point to reassess existing arrangements and planned transactions. The review should reflect each entity\u2019s activities and the jurisdictions involved.<\/p>\n\n\n\n

Cross-Border Transactions and Tax Exposure<\/strong><\/h3>\n\n\n\n

Identify whether the treatment of payments, investments or intercompany transactions depends on a jurisdiction\u2019s listing status. Review any relevant provisions with advisers in the countries concerned.<\/p>\n\n\n\n

Our strategic tax advisory for businesses<\/a> supports the assessment of these arrangements.<\/p>\n\n\n\n

Corporate Structures and Economic Substance<\/strong><\/h3>\n\n\n\n

Assess the role of each Panamanian entity within the group and the requirements applicable to its activities. For changes to ownership arrangements, governance or group organization, our corporate and business law team<\/a> can coordinate the legal analysis.<\/p>\n\n\n\n

Compliance Policies and Supporting Records<\/strong><\/h3>\n\n\n\n

Check whether internal policies, contracts or due diligence files contain references to Panama\u2019s previous classification.<\/p>\n\n\n\n

This can form part of a broader regulatory compliance review<\/a>, supported by tax management and compliance services<\/a>.<\/p>\n\n\n\n

Frequently Asked Questions About Panama\u2019s EU Tax Status<\/strong><\/h2>\n\n\n\n
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