EU Tax Haven Blacklist: Panama Cleared, Anguilla Warned, 8 Remain

The EU tax haven blacklist got shorter on Friday, when European finance ministers removed Panama and Vietnam and left eight jurisdictions on the list. Both countries now sit on the softer Annex II watch list, while Anguilla drew a formal rebuke and Vanuatu failed to get out.

LUXEMBOURG, Luxembourg – 09 October 2026

Panama had been stuck on Annex I since February 2020. Vietnam only arrived in February 2026, so its stay lasted eight months. The Council’s twice-yearly review also cleared Belize off Annex II entirely, a quiet win for anyone running a Belize IBC.

We flagged the likely Panama exit in our Panama EU tax haven list preview last week. Friday’s vote confirms it, and it adds a few twists that matter for anyone comparing offshore companies in 60+ jurisdictions or holding entities in the places still listed.

What changed on the EU tax haven blacklist?

EU finance ministers removed Panama and Vietnam from Annex I of the EU list of non-cooperative jurisdictions on 9 October 2026, cutting the EU tax haven blacklist from ten names to eight. Both moved to Annex II, where they’ll stay until an OECD Global Forum in-depth review confirms their tax information exchange works as promised.

The European Commission’s summary of the decision credits both countries with “significant steps taken to address outstanding issues.” Panama’s big concession was its economic substance law, passed earlier this year, which targets entities earning passive foreign-source income. Finance Minister Felipe Chapman said Panama’s removal was “the result of concrete and verifiable reforms,” according to the EU Delegation to Panama.

For anyone holding a Panama S.A. or private interest foundation, that’s the headline. The defensive measures EU member states could apply to Annex I jurisdictions, including tax penalties and extra scrutiny of transactions, are being lifted. We’ve had clients whose European customers refused to pay a blacklisted Panama company at all. That friction should ease over the coming months as member states update their national lists.

Who’s still on the EU list of non-cooperative jurisdictions?

Eight jurisdictions remain on the EU list of non-cooperative jurisdictions after the October 2026 review: American Samoa, Anguilla, Guam, Palau, Russia, the Turks and Caicos Islands, the US Virgin Islands and Vanuatu. None of them made enough progress to satisfy finance ministers, and each still faces EU defensive tax measures on payments from member states.

Anguilla’s position got worse. The Council said it “regrets this development” after Anguilla failed to fix issues with its exchange of information framework, and it invited the territory to engage with the Code of Conduct Group and the Global Forum. That’s diplomatic language for a final warning.

Vanuatu is the one that stings for our readers. The Council recognised its progress on tax transparency, but it said concerns remain in another area, so Vanuatu stays listed. If you hold Vanuatu citizenship by investment or a Vanuatu company, nothing changes for now. Bottom line: a Vanuatu entity still invites awkward questions from European banks.

What does Annex II mean for Panama companies?

Annex II is the EU’s watch list for jurisdictions that have made commitments to reform but haven’t finished delivering them. A spot on the EU Annex II grey list carries no automatic defensive tax measures, but the EU monitors it closely, and a missed commitment can push a jurisdiction straight back onto Annex I at the next review.

Panama now shares Annex II with nine others: the British Virgin Islands, Brunei Darussalam, Eswatini, Greenland, Jordan, Montenegro, Morocco, Türkiye and Vietnam. The EEAS says Panama will only leave Annex II once the Global Forum confirms it’s “largely compliant” or “fully compliant” with the exchange of information standard. So this is a probation period. Treat it like one.

This is where people get burned. They hear “Panama is off the blacklist” and assume their dormant Panama shell is suddenly clean. It isn’t. The substance rules that bought Panama its exit are the same rules that’ll tax a passive company with nobody home, and banks will read the Annex II label as a reason to keep asking for proof of real activity.

Why does the EU tax haven blacklist matter to company owners?

The EU tax haven blacklist matters because every EU member state must apply at least one defensive tax measure to payments involving listed jurisdictions, and 18 apply two or more. Those measures include denying tax deductions, tougher controlled foreign company rules, withholding taxes and limits on the participation exemption for dividends, according to the Council of the EU.

In practice, a listed company becomes a liability the moment it invoices a European client. I’ve watched entrepreneurs pick a jurisdiction purely on setup price, then spend years explaining it to compliance teams.

That’s why the jurisdiction call is the whole game. Belize’s clean exit makes a Belize IBC easier to defend, while the BVI business company still carries an Annex II asterisk. If you’re choosing between jurisdictions, check where each one sits on the list before you sign anything, and plan to check again every February and October.

Frequently Asked Questions

Panama’s exit is good news, and Belize’s clean bill of health is better. Just don’t mistake a lighter list for a lighter compliance load. Brussels moves names on and off twice a year, and the structure you pick today has to survive the next five reviews.