Panama Removed from EU Tax Blacklist: A New Milestone for International Investment and Business Opportunities

Panama has reached a significant milestone in strengthening its international reputation. On October 9, 2026, the Council of the European Union officially removed Panama from its list of non-cooperative jurisdictions for tax purposes, recognizing the country's progress in tax transparency and international cooperation.

The decision moves Panama from Annex I to Annex II, acknowledging important reforms while maintaining ongoing monitoring of certain commitments.

Strengthening Panama's Relationship with Europe

Panama's removal from the EU tax blacklist sends an encouraging signal to international markets, particularly European investors, entrepreneurs, and businesses considering opportunities in Latin America. "This update reflects a positive trend in compliance with international standards of good tax governance,” the European Union committee highlighted.

This recognition underscores Panama's continued efforts to align with international standards and strengthen its position as a reliable partner for global business and investment. The decision follows reforms to Panama's foreign-source income exemption regime and the country's commitment to further review of its tax information exchange framework.

While the transition to Annex II does not automatically remove every regulatory consideration, it represents meaningful progress in Panama's relationship with the European Union.

For European investors and businesses, this development may contribute to a more favorable perception of Panama as a destination for international expansion, investment diversification, and long-term business relationships.

What This Means for International Investors

As global investors increasingly evaluate opportunities beyond their home markets, Panama continues to offer several attractive advantages.

"Today, with this great victory, we open the doors to new investments, gain competitiveness, and create real opportunities for Panamanians. Our government takes another step toward building a better present and a better future for everyone,” said José Raúl Mulino, President of Panama.

The President's remarks highlight the broader significance of this achievement: beyond regulatory progress, the decision represents an opportunity to reinforce Panama's competitiveness, attract international capital, and foster stronger economic relationships.

Its strategic position connecting North and South America, established banking sector, U.S. dollar-based economy, and international business environment make it a compelling destination for those seeking to diversify their investments and establish a presence in the region.

This latest development reinforces the importance of transparency, international cooperation, and regulatory progress in building long-term investor confidence.

For individuals and families exploring a Plan B, Panama also offers pathways to establish permanent residency through qualifying investments.

Panama's Qualified Investor Program: An Opportunity to Build a Future

Panama's Qualified Investor Program (PQIP) provides eligible foreign nationals with a pathway to permanent residency through qualifying investments, including real estate.

For international investors seeking greater geographic flexibility, portfolio diversification, or the opportunity to establish a second base in the Americas, the program represents an attractive option.

The program's real estate investment pathway currently starts at USD 300,000 for eligible first-sale properties, subject to applicable requirements.

Combined with Panama's evolving international standing, the PQIP offers an opportunity for investors to explore both residency and real estate ownership in a strategically located market.