EU Blacklist of Tax Havens: 11 Countries Under European Sanctions

The European Union regularly updates the list of non-cooperative tax jurisdictions and high-risk countries for money laundering. Currently, the blacklist includes 11 countries, while at the same time, 17 countries around the world do not levy personal income tax.

Nothing new, nothing new

The latest revision of the EU list of non-cooperative jurisdictions from February 2025 shows that the list has not changed. It includes American Samoa, Anguilla, Fiji, Guam, Palau, Panama, the Russian Federation, Samoa, Trinidad and Tobago, the U.S. Virgin Islands, and Vanuatu.

The European Council uses three criteria for assessment, which include tax transparency, fair taxation, and the existence of measures against BEPS. Countries on the blacklist do not meet one or more of these standards. In parallel with the blacklist, the EU maintains a grey list of nine jurisdictions that have made commitments to tax reforms and have the opportunity to avoid sanctions while implementing the necessary changes to their tax systems.

According to publicly available data, there are currently 17 countries that do not levy personal income tax. These are Antigua and Barbuda, Saint Kitts and Nevis, the UAE, Vanuatu, Brunei, Bahrain, the Bahamas, Bermuda, the Cayman Islands, the Turks and Caicos Islands, the British Virgin Islands, Monaco, Saudi Arabia, Kuwait, Qatar, Somalia, and Western Sahara. Of these countries, only Vanuatu is on the EU blacklist of tax havens, meaning that 16 out of 17 countries without income tax have managed to maintain cooperative jurisdiction status according to EU standards.

Citizenship by Investment Programs in Tax-Free Countries

Four countries with zero income tax offer citizenship or residency programs through investment. Antigua and Barbuda requires a minimum investment of $230,000, and the country does not levy taxes on income, wealth, capital gains, or inheritance. International business companies are exempt from tax for 50 years.

Saint Kitts and Nevis requires a minimum investment of $250,000 and does not levy income tax, dividends, royalties, or interest for residents. The corporate tax is 33 percent, and VAT ranges from 10 to 15 percent. Vanuatu offers the fastest citizenship program lasting between two and four months with a minimum investment of $130,000. The country does not levy personal income tax, inheritance tax, or capital gains tax, and companies can be exempt from tax for 20 years with an annual fee of $300.

The UAE Golden Visa program requires a minimum investment of $205,000, and the country does not levy personal income tax, capital gains tax, inheritance tax, or property tax. A corporate tax of nine percent applies only to companies with profits exceeding 375,000 dirhams.

Other significant destinations include Bahrain, which offers residency through an investment of $270,000 and does not levy income tax, while a corporate tax of 46 percent exists only for oil companies. The Bahamas requires an investment of $750,000, with corporate tax up to three percent of revenue, and VAT ranging from zero to 12 percent. Monaco requires an investment of one million euros, with corporate tax up to 33 percent, VAT at 20 percent, and no property tax. Bermuda requires an investment of $2.5 million and does not levy income tax or VAT.

Some countries with zero income tax have restrictions that reduce their attractiveness. For example, Somalia and Western Sahara are marked as unsafe for living and doing business and do not offer programs for obtaining citizenship or residency through investment. Brunei, Kuwait, and Qatar also do not allow obtaining citizenship or residency through investment programs.

AML List and Practical Impact on Banking

The EU updated the list of high-risk jurisdictions for combating money laundering in June 2025. Bolivia and the British Virgin Islands were added to the list, while Croatia, Mali, and Tanzania were removed. Additionally, banks in the EU must apply enhanced monitoring measures to all transactions from countries on the high-risk AML list, which includes additional documentation, extended checks, and increased business costs.

Jurisdictions on the EU blacklist also face difficulties accessing the European financial system. EU directives require banks to implement additional due diligence measures, resulting in longer account opening times, additional documentation for transactions, increased compliance costs, and possible rejection of business relationships.

The presence of the Russian Federation on the EU blacklist is linked to sanctions imposed following the Russian invasion of Ukraine in February 2022. Russia was added to the list in February 2023, along with the British Virgin Islands, Costa Rica, and the Marshall Islands.

The OECD has introduced a global minimum corporate tax rate of 15 percent for companies with annual revenues exceeding 750 million euros. More than 140 countries have signed the agreement, but implementation is still ongoing. The Common Reporting Standard requires automatic exchange of tax information between countries, limiting the possibilities of hiding assets in offshore jurisdictions.

It is worth noting that the EU finalized new regulations on combating money laundering in 2025. The new European supervisory authority began operations on July 1, 2025, with expanded powers to coordinate AML measures across the EU. The new AML directive will come into effect in 2027 and introduces additional transparency requirements that may affect current lists of high-risk countries.

Malta and Cyprus, as EU members, demonstrate how tax incentives can be combined with EU standards. The Malta Global Residence Programme allows for a 15 percent tax on foreign income transferred to Malta, with zero tax on income remaining abroad. Interestingly, territorial tax systems, used by many of the mentioned countries, tax only economic activity within their own territory, which is considered a legitimate approach in international tax law.

The EU lists of non-cooperative jurisdictions are regularly updated based on assessments of tax transparency, fair taxation, and BEPS measures. Of the 17 countries without income tax, only Vanuatu is currently on the EU blacklist, while others manage to maintain cooperative jurisdiction status despite preferential tax policies.