Saint Lucia has successfully preserved its position outside the European Union’s tax blacklist, as confirmed by the EU’s latest assessment published on February 17, 2026. This marks another validation of the Caribbean nation’s commitment to international tax transparency standards, a significant achievement for a country that faced EU listing less than a decade prior.
The island nation’s journey toward tax compliance began after its initial placement on the EU’s non-cooperative jurisdictions list in December 2017. Following high-level commitments made in March 2018, Saint Lucia implemented comprehensive legislative overhauls that resulted in its complete removal from all EU tax-related lists by February 2021.
Substantive reforms included the abolition of preferential tax regimes considered potentially harmful, particularly elements of the International Business Company framework and related offshore incentives. The government modernized its corporate tax system through the introduction of a territorial regime coupled with rigorous economic substance requirements designed to prevent artificial profit shifting.
Transparency measures were significantly enhanced through full participation in the OECD’s Common Reporting Standard for automatic financial information exchange and compliance with Global Forum standards on information exchange upon request. The nation further aligned domestic regulations with OECD Base Erosion and Profit Shifting (BEPS) minimum standards, incorporating transfer pricing rules and anti-abuse measures.
Prime Minister Philip J. Pierre emphasized that Saint Lucia’s achievement demonstrates how small states can meet rigorous international standards while preserving economic sovereignty. The government views tax compliance as integral to protecting correspondent banking relationships, maintaining access to international financial markets, and promoting sustainable economic growth.
With the next EU review scheduled for October 2026, Saint Lucia maintains its commitment to upholding the highest standards of tax governance and international cooperation.