What Exactly Is the EU Blacklist and Why Should You Care?
The EU Blacklist is compiled by the European Commission to pressure countries into adopting its standards on tax governance. A country lands on this list if it fails to meet the EU's criteria in three key areas:
Tax Transparency: This is all about the exchange of information. The EU wants countries to automatically share financial data under the OECD's Common Reporting Standard (CRS). Countries that guard financial privacy are flagged.
Fair Taxation: This is a subjective measure where the EU objects to 'harmful' tax regimes. A major red flag is allowing companies to exist without 'real economic activity' or 'substance' (like a physical office and local employees)—a standard that completely misunderstands the lean, location-independent model of a digital nomad business.
Anti-BEPS Measures: This focuses on preventing Base Erosion and Profit Shifting (BEPS), the strategies multinational corporations use to move profits to low-tax jurisdictions.
The Real-World Consequences: Banking is the Battlefield
Let's be clear: having residency in a blacklisted country isn't illegal. The primary weapon the EU wields is pressure on its financial institutions. The consequences are almost entirely centered around banking.
For Individuals
If you identify yourself as a resident of a blacklisted country like the Bahamas or Panama when dealing with a European bank, you'll likely face issues. Banks may refuse to open an account for you or, even worse, move to close your existing accounts to de-risk their own operations. The solution? For perpetual travelers living in these jurisdictions, securing a secondary 'paper address' or residency in a compliant country is a critical strategy to maintain access to EU banking.
For Businesses
The situation is more severe for companies. A business registered in a blacklisted jurisdiction like the British Virgin Islands (BVI) will find it extremely difficult to maintain an EU bank account. Access to the SEPA payment system will be heavily restricted, crippling any operations that rely on European clients or suppliers. Financial institutions are simply unwilling to onboard or service corporate clients from these locations.
A Note on Country-Specific Rules (e.g., Germany)
Some EU countries go further. Germany’s Tax Haven Protection Act, for example, can deny the deduction of business expenses paid to entities in blacklisted countries. However, these are not uniform EU-wide rules, and they often come with long transition periods. Spain, for instance, does not have its own blacklist that includes places like Panama or Costa Rica. The key is to know that the impact is not monolithic across the EU.
The 2025 EU Blacklist: A Country-by-Country Breakdown for Nomads
Here's a look at the key jurisdictions on the list and, more importantly, what they offer the strategic nomad. Remember, a country being on this list means it's doing something the EU doesn't like—which might be exactly what you're looking for.
Important Note: The United States, arguably one of the world's most significant tax havens (especially states like Delaware, Wyoming, and South Dakota for non-residents), is notably absent from this list and is expected to remain so due to political leverage.
American Samoa
Why it's on the list: Refuses to play ball with OECD transparency and anti-profit-shifting standards.
The Nomad Angle: While not a 100% tax-free haven, its International Companies (ICs) and LLCs can benefit from 0% corporate tax and have no accounting or audit requirements.
Anguilla
Why it's on the list: Lacks requirements for economic substance, making it ideal for offshore companies.
The Nomad Angle: A true tax haven with 0% income tax for residents and non-residents. Its LLCs and IBCs are flexible and private. Anguilla also offers a digital nomad visa, making it an attractive base.
The Bahamas
Why it's on the list: Criticized for allowing companies without economic substance.
The Nomad Angle: A classic tax haven with 0% income, capital gains, and corporate tax. It offers the 'BEATS' digital nomad visa, valid for up to three years, making it a prime location for tax-free living.
British Virgin Islands (BVI)
Why it's on the list: Deemed 'Not Compliant' with tax transparency standards due to the sheer ease and popularity of its offshore company formation.
The Nomad Angle: The BVI is famous for its 0% tax on all forms of income. However, its blacklisting makes accessing EU banking for a BVI company nearly impossible, a significant operational hurdle.
Costa Rica
Why it's on the list: Its territorial tax system, which exempts foreign-source income, is considered a 'harmful' feature when applied to companies.
The Nomad Angle: The EU's issue is with corporations, not individuals. For a digital nomad earning foreign income, Costa Rica's territorial tax system remains highly attractive. It also boasts a popular digital nomad visa.
Marshall Islands
Why it's on the list: Does not enforce economic substance requirements for companies.
The Nomad Angle: Its International Business Company (IBC) is completely tax-free, requires no accounting, and can be run by a single person with minimal admin. This makes it an incredibly efficient, low-maintenance corporate vehicle.
Panama
Why it's on the list: Rated poorly on transparency and for its 'harmful' territorial tax system for corporations.
The Nomad Angle: Despite recent reforms making it less attractive, Panama's territorial tax system is still a huge benefit for individuals. It remains a strong choice, especially for those focused on the US market or using a US LLC, where EU banking is less of a concern.
Russia
Why it's on the list: Added due to its creation of a 'harmful' international holding company regime, largely seen as a politically motivated move.
The Nomad Angle: Generally not a jurisdiction we recommend for tax structuring, but it offers a flat 13% tax rate that can be attractive to some.
Trinidad and Tobago
Why it's on the list: One of the few Caribbean nations that has not signed on for automatic information exchange.
The Nomad Angle: Its commitment to financial privacy is notable, but a lack of quality banking options makes it less practical for most nomads.
Turks and Caicos Islands
Why it's on the list: Lacks economic substance requirements for companies.
The Nomad Angle: A pure tax haven with no income, corporate, capital gains, or value-added tax. The only major contribution is for national healthcare, capped at a reasonable level.
Vanuatu
Why it's on the list: Facilitates offshore structures without sufficient substance requirements.
The Nomad Angle: A completely zero-tax country. It is especially famous for its fast-track citizenship by investment program, which can even be paid for with Bitcoin, offering a powerful passport and tax-free base.
Other countries on the list with less direct relevance for the typical digital nomad include Fiji, Guam, Palau, and Samoa (Independent State).
