European Union’s list of non-cooperative jurisdictions: Why Trinidad and Tobago was delisted in 2026.

Trinidad and Tobago’s removal from the European Union’s list of non-cooperative jurisdictions for tax purposes

Trinidad and Tobago removed from the European Union’s list of non-cooperative jurisdictions

Trinidad and Tobago’s removal from the European Union’s list of non-cooperative jurisdictions confirms its compliance with international tax transparency and fair taxation standards. In February 2026, EU Finance Ministers formally delisted the country after it implemented structural tax reforms, abolished its Free Trade Zone regime, strengthened exchange of information mechanisms, and aligned with OECD Base Erosion and Profit Shifting requirements. The listing had previously signalled deficiencies in transparency and harmful tax practices, creating reputational and investment headwinds. The delisting reflects sustained legislative reform, peer review compliance and institutional modernisation. This article explains why Trinidad and Tobago was placed on the European Union’s list of non-cooperative jurisdictions, what economic and regulatory consequences followed, and how coordinated domestic and international reforms secured its removal.

Key Takeaways

Trinidad and Tobago was listed due to deficiencies in tax transparency and harmful tax practices.
Reform of the Free Trade Zone regime was central to meeting EU standards.
OECD Global Forum compliance was critical to delisting.
Removal strengthens international credibility and investment confidence.

In February 2026, the European Union (EU) officially removed Trinidad and Tobago from its list of non-cooperative jurisdictions for tax purposes, commonly referred to as the EU’s “tax blacklist”. This marked a major milestone in the country’s long journey of tax reform, international cooperation and regulatory alignment with global tax standards. The decision followed years of legislative changes, international peer reviews and close engagement with multinational tax governance frameworks.

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What the EU list is and why is it important

The EU list of non-cooperative jurisdictions for tax purposes was established in December 2017 to promote tax transparency, fair taxation, and measures to prevent tax base erosion and profit shifting (BEPS). The list identifies non-EU countries and territories that have not yet met all internationally agreed standards or have failed to deliver on commitments to improve their tax laws and practices in response to EU concerns. It is updated bi-annually by the Economic and Financial Affairs Council (ECOFIN) after assessment by the Council’s Code of Conduct Group in cooperation with international bodies such as the Organisation for Economic Co-operation and Development (OECD).

Being on the list does not equate to punitive measures in law but carries significant reputational and economic weight, as EU Member States may take “defensive measures” in non-tax and tax areas, and investors and partners may treat listed jurisdictions as higher risk.

How Trinidad and Tobago ended up on the list

Trinidad and Tobago first appeared on the EU list because it did not fully meet key criteria related to tax transparency, exchange of information, and fair taxation practices. In the early years of the list, several jurisdictions, including Trinidad and Tobago, were screened and found not to have sufficiently complied with the EU’s good governance standards and international benchmarks.

A specific structural issue in Trinidad and Tobago’s tax framework was its Free Trade Zone (FTZ) regime. Under the FTZ regime, companies operating in designated zones could benefit from zero or nominal tax rates, which, while intended to attract investment, were perceived internationally as facilitating harmful tax practices and contributing to base erosion and profit shifting by multinational enterprises.

Additionally, until reforms were completed, Trinidad and Tobago’s exchange of information mechanisms and alignment with OECD standards such as automatic exchange of financial account information and country-by-country reporting (under BEPS Action 13) were not yet fully compliant with the benchmarks used by the EU and the OECD Global Forum on Transparency. These gaps were factors in the country’s continued presence on the list through successive updates, including revisions in 2023, 2024 and 2025.

What being on the list meant for Trinidad and Tobago

While inclusion on the EU’s list was not a sanction, it was a marker of concern for international partners, investors and financial institutions regarding the country’s tax governance. The label of “non-cooperative” suggested that Trinidad and Tobago’s legal and regulatory framework had areas that could hinder effective exchange of tax information or permit tax planning that undermined fair taxation. This could influence foreign direct investment decisions, affect credit riskassessments, and temper participation in some financial or development initiatives.

The reputational impact was particularly relevant as global investors and multinational corporations increasingly scrutinise jurisdictions for compliance with tax transparency, exchange mechanisms and alignment with OECD-led initiatives designed to curb tax avoidance and evasion. The EU list is widely referenced alongside other international assessments such as the OECD Global Forum ratings, making its implications broad in scope.

Strategic reforms and legislative action

In response to these challenges, Trinidad and Tobago embarked on a comprehensive programme of reforms. A key milestone was the abolition of the traditional Free Trade Zone regime, which had been assessed as non-compliant with the OECD’s Harmful Tax Practices framework. In its place, the government introduced a Special Economic Zone (SEZ) regime, incorporating minimum tax standards, including a 15 percent global minimum tax for multinational companies, in line with OECD BEPS minimum standards.

This legislative overhaul took several years to design and implement, reflecting both domestic economic considerations and the need to satisfy international expectations on fair taxation. The repeal of the Free Trade Zone Act and the establishment of a more compliant SEZ framework signalled a decisive shift in Trinidad and Tobago’s approach to attracting investment while maintaining tax good governance.

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Engagement with international tax frameworks

Beyond domestic legislation, Trinidad and Tobago actively engaged with international peer review processes. The country participated in the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, undergoing a formal peer review process to demonstrate compliance with standards for exchanging tax information on request and automatic exchange of financial account information.

Achieving a satisfactory rating from the Global Forum is critical because the EU’s criteria for removal from the list include equivalence with internationally recognised benchmarks, notably those maintained by the OECD and related forums. The Government’s efforts aimed not only to meet these outcomes but also to demonstrate sustained commitment to transparency and cooperation.

The February 2026 delisting decision

On February 17, 2026, EU Finance Ministers met and agreed to update the EU list of non-cooperative jurisdictions. In that revision, the Council removed Fiji, Samoa and Trinidad and Tobago from Annex I, following each jurisdiction’s successful rectification of previously identified deficiencies. At the same time, Vietnam and the Turks and Caicos Islands were added, reflecting enforcement of the same global standards and the dynamic nature of the list.

The EU described the removals as evidence of progress in supporting the uptake of international tax standards and promoting tax good governance worldwide. Although the list remains a tool to encourage reform rather than to punish, the removal of Trinidad and Tobago highlights that sustained legal, regulatory and institutional changes can satisfy the criteria required.

What removal means for Trinidad and Tobago

The delisting marks a significant evolution in Trinidad and Tobago’s international economic profile. It signifies that the country has addressed major concerns related to tax transparency and fair taxation to a degree recognised by one of the world’s strictest standards-setters. For businesses, investors and financial partners, this change carries reputational reassurance that Trinidad and Tobago now aligns more closely with global norms for tax governance.

Delisting may improve Trinidad and Tobago’s attractiveness as an investment destination, potentially reducing perceived regulatory risk for foreign direct investment. It can also enhance participation in cross-border financial cooperation and reduce potential frictions in tax treaties, information exchange protocols and multinational investment strategies. While it does not automatically alter visa regimes, trade agreements or development financing eligibility, it removes a barrier that could have influenced negotiations or partner assessments.

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Context in global tax governance

Trinidad and Tobago’s experience reflects broader international efforts to refine tax systems in a world of mobile capital and multinational corporate footprints. The EU list functions in tandem with other initiatives such as the OECD’s BEPS project, the Global Forum reviews, and the global minimum tax framework, each designed to foster fairness, transparency and cooperation.

As jurisdictions adapt their laws to meet these standards, the list continues to evolve, incentivising not only compliance but also continuous engagement. The inclusion and removal processes demonstrate that the EU list is not static but responds to measurable reform outcomes.

A turning point for economic strategy

For Trinidad and Tobago, removal from the EU’s list is more than a label change. It represents the culmination of strategic legislative reform, multilateral engagement and alignment with international tax governance norms. The country’s leadership and private sector have had to balance domestic economic priorities with expectations from global partners, navigating complex negotiations and implementing structural changes to tax and corporate regimes.

The implications are wide: from reinforcing confidence among international investors to signalling that the Caribbean nation is open to fair taxation and cooperative financial practices. As the global economy continues to prioritise transparency and responsible tax behaviour, Trinidad and Tobago’s evolution provides a case study in how jurisdictions can recalibrate their systems to meet modern expectations without sacrificing competitiveness.

Conclusion

Trinidad and Tobago’s removal in February 2026 from the European Union’s list of non-cooperative jurisdictions for tax purposes is a testament to years of comprehensive reform, constructive cooperation with international tax bodies and legislative alignment with BEPS and transparency standards. It signifies not only compliance with the EU’s tax governance criteria but also an enhanced standing in the global economic order. Through decisive action on tax transparency, elimination of harmful tax practices, and engagement in peer review processes, Trinidad and Tobago has transitioned from a labelled jurisdiction to a recognised partner in global tax governance.

Sources:

https://www.consilium.europa.eu/en/policies/eu-list-of-non-cooperative-jurisdictions

https://www.consilium.europa.eu/en/press/press-releases/2018/01/23/taxation-eight-jurisdictions-removed-from-eu-list

https://taxation-customs.ec.europa.eu/news/eu-updates-list-non-cooperative-tax-jurisdictions-highlighting-commitment-global-tax-good-governance-2026-02-17_en?

https://www.reuters.com/business/eu-adds-turks-caicos-vietnam-tax-havens-list-2026-02-17

https://newsday.co.tt/2025/02/08/imbert-trinidad-and-tobago-removed-from-list-of-countries-with-harmful-tax-practices/

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