Quick Answer
Yes, the removal is confirmed. On October 9, 2026, EU finance ministers (the Economic and Financial Affairs Council, ECOFIN) removed Panama from the EU list of non-cooperative jurisdictions for tax purposes, the so-called tax-haven blacklist, and moved it to Annex II, the list of jurisdictions with pending commitments. Vietnam was removed at the same time. Panama had held the Annex I listing since February 2020. (Last verified: October 9, 2026.)
What Happened
The Council adopted revised conclusions at its 4158th meeting on October 9, 2026, removing Panama and Vietnam from Annex I and placing both in Annex II, where their commitments will continue to be monitored. The removal follows two Panamanian reforms: Law 526 of 2026, which applies a 15 percent tax to untaxed passive foreign income lacking economic substance in Panama, and an overhaul of the beneficial-ownership registry, along with progress on exchanging tax information on request. The revised blacklist now holds eight jurisdictions: American Samoa, Anguilla, Guam, Palau, Russia, Turks and Caicos Islands, the U.S. Virgin Islands, and Vanuatu.
Why It Matters for Property
Most international buyers purchase through a Panamanian corporation, and funds move through Panamanian banks. While the country sat on the blacklist, those structures could draw extra compliance questions in cross-border transactions. Delisting does not change any step of the buying process, any tax, or any price. It removes a layer of reputational friction in how European banks and institutions view Panamanian entities, which is a change in financial standing, not a price signal. It pairs with our piece on Law 526 and what property owners should know.
What It Means for You
For investors and relocators, the practical takeaway is less reputational drag on Panamanian structures and a cleaner picture for holding assets long term. Prices, clean title, and lifestyle fit still decide the deal. If you hold property through a Panama corporation, the economic substance rules introduced by Law 526 still apply from fiscal year 2027, so have your structure reviewed by a qualified Panamanian accountant regardless of the EU listing.
This update confirms what we outlined on September 30 in "Panama Expected to Leave the EU Tax-Haven List". For context, see our investment overview, the market report, and the FAQ, or talk with Chad about how this applies to your situation. No pressure, just good information.
Sources
- EU Law Live: "Council removes Panama and Viet Nam from EU list of non-cooperative jurisdictions for tax purposes," October 9, 2026
- Council of the EU: Council conclusions of 9 October 2026 (document ST-13854/26)
- Newsroom Panama: "The European Union has removed Panama from its Tax Blacklist," October 9, 2026
- SCMP/AFP: "EU removes Panama from tax haven blacklist," October 9, 2026