In December 2017, Panama was included by the Council of Ministers of Economy and Finance of the European Union in Annex II of the List of non-cooperative jurisdictions in fiscal matters. That has now changed.

From the Ministry of Foreign Affairs press release:

Panama welcomes the decision of the Council of Ministers of Economy and Finance of the European Union (ECOFIN) to definitively remove the Republic of Panama from Annex II of the List of non-cooperating jurisdictions in tax matters.

In December 2017, the European Union included Panama in this discriminatory list, because of a lack of understanding of the country’s tax regimes. In January 2018, after technical and diplomatic efforts, this regional bloc removed Panama from that classification, moving on to an observation or monitoring list, which recognized that the country was dedicated to completing the necessary legislative reforms to adapt the preferential regimes considered harmful.

Read full press release (In Spanish).