The European Union has Removed Panama from its Tax Blacklist.

The Council of the European Union (EU) removed Panama from its list of non-cooperative jurisdictions in tax matters, known as the blacklist, and moved the country to Annex II, which includes jurisdictions with outstanding tax commitments or those under review.  This was announced by President José Raúl Mulino.  The decision was announced this Friday during a meeting of EU finance ministers. The European body indicated that the change reflects progress in meeting international standards of transparency and tax cooperation.  “This update reflects a positive trend in compliance with international standards of good tax governance,” the European Union committee said. 

Removal from the blacklist could help improve Panama’s image among European investors and facilitate new business opportunities. However, the extent of this effect will depend on investment decisions and the country’s economic and regulatory conditions.  President José Raúl Mulino had placed Panama’s exclusion from this list among the priorities of his administration, which began in July 2024. Since then, the government has promoted diplomatic efforts to defend the country’s position before European authorities.  Mulino attributed the result to work begun before he assumed the Presidency and continued from the Executive branch.  “This is the result of a struggle I started in the private sector, and led as president, from day one.

I did it working alongside a great team and with the support of all sectors, whose participation I appreciate,” he stated.  The president also highlighted the efforts made with European representatives and in international forums to restore confidence in the Panamanian tax system. “To achieve this, we had to travel to hold face-to-face meetings, advocate in forums, and, above all, regain the trust of the international community,” he emphasized.  Following the announcement, Mulino stated that the decision will expand economic opportunities for the country. “Today, with this great victory, we are opening the doors to new investments, gaining competitiveness, and creating real opportunities for Panamanians. Our government is taking another step toward building a better present and a better future for all,” he said.