🇵🇦 Six Years of Panama on the Blacklist. Now Everything Has Changed
On 9 October, EU finance ministers removed Panama and Vietnam from Annex I, the blacklist of tax jurisdictions. Panama had been on it since February 2020.
Why does this matter? While a country is on the list, EU member states apply defensive tax measures to it. Once it is removed, these measures are lifted as well. In other words, for European partners, a Panamanian company is no longer a “red flag” by default.
❗️ This is not a full rehabilitation. Panama has moved to Annex II and will remain there pending an in-depth review by the OECD Global Forum on the exchange of tax information. Annex II is the list of jurisdictions that cooperate with the EU but have not yet fulfilled all their commitments.
The decision did not come for free. According to the EU Council, Panama reformed its harmful foreign-source income exemption regime. That is why, from 2027, companies belonging to multinational groups must meet requirements for real presence in the country. Registration alone is no longer enough.
✉️ If you are choosing a jurisdiction for a holding company or a business in Latin America, Panama is among the worthy options, but with new rules.
Private Financial Services will audit your Panamanian structure @PfserBot
On 9 October, EU finance ministers removed Panama and Vietnam from Annex I, the blacklist of tax jurisdictions. Panama had been on it since February 2020.
Why does this matter? While a country is on the list, EU member states apply defensive tax measures to it. Once it is removed, these measures are lifted as well. In other words, for European partners, a Panamanian company is no longer a “red flag” by default.
❗️ This is not a full rehabilitation. Panama has moved to Annex II and will remain there pending an in-depth review by the OECD Global Forum on the exchange of tax information. Annex II is the list of jurisdictions that cooperate with the EU but have not yet fulfilled all their commitments.
The decision did not come for free. According to the EU Council, Panama reformed its harmful foreign-source income exemption regime. That is why, from 2027, companies belonging to multinational groups must meet requirements for real presence in the country. Registration alone is no longer enough.
✉️ If you are choosing a jurisdiction for a holding company or a business in Latin America, Panama is among the worthy options, but with new rules.
Private Financial Services will audit your Panamanian structure @PfserBot