Panama to be removed from EU tax haven list in October

Panama is expected to be removed from the European Union’s list of tax havens during a meeting of the bloc’s finance ministers scheduled for next month in Luxembourg. According to the Panamanian Ministry of Foreign Affairs, the decision will be analyzed as part of the EU’s biannual update of non-cooperative jurisdictions aimed at combating tax evasion and promoting transparency.

This move follows the passage of the economic substance law by the government of President José Raúl Mulino, which was designed to increase fiscal transparency and implement stricter measures against shell companies. This follows a previous achievement where Panama was excluded from the EU’s list of high-risk third countries and non-cooperative jurisdictions linked to money laundering and financial crimes.

During the same update, Vietnam is expected to be moved to the “grey list.” Other territories currently on the EU list include Russia, Vanuatu, and the U.S. territories of Guam, Samoa, and the Virgin Islands.