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Will EU companies treat payments to my Panama company differently?

Last updated: Oct 21, 2026, 17:46 (UTC+08:00)

They may. EU member states apply defensive measures to payments involving listed jurisdictions, such as refusing tax deductions or charging extra withholding tax. An EU customer may therefore ask questions or prefer not to pay a Panama entity, so check your customer base before you choose Panama.

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Source: EU list of non-cooperative jurisdictions for tax purposes, Council of the European Union

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