The Government of Saint Lucia Wednesday reaffirmed the country’s full compliance with European Union tax good-governance standards, underscoring a reform process that has strengthened transparency, modernized the tax framework, and reinforced Saint Lucia’s standing as a responsible and cooperative international financial jurisdiction.
Saint Lucia was initially placed on the European Union’s list of non-cooperative jurisdictions in December 2017. Following high-level commitments to address identified concerns, the country was moved to the EU’s state-of-play (Annex II) list in March 2018. After implementing comprehensive legislative and regulatory reforms, Saint Lucia was officially removed from all EU tax-related lists in February 2021, having fulfilled every commitment made to the EU.
Since that time, Saint Lucia has maintained its cooperative status through successive bi-annual reviews conducted by the EU Council.
The reforms undertaken by Saint Lucia were substantive and structural. They included the abolition of preferential tax regimes deemed potentially harmful, including elements of the former International Business Company framework and related offshore incentives. The modernization of the corporate tax system through the introduction of a territorial regime, coupled with strict economic substance requirements to prevent artificial profit shifting was also part of the reforms. Also included was the enactment and strengthening of Economic Substance legislation to ensure that companies benefiting from tax provisions demonstrate real commercial presence and activity within Saint Lucia and the enhancement of transparency measures, including full participation in the OECD’s Common Reporting Standard for automatic exchange of financial account information and compliance with Global Forum standards on exchange of information upon request. The alignment with OECD Base Erosion and Profit Shifting (BEPS) minimum standards, including transfer pricing rules and anti-abuse measures formed part of the adjustment made.
These reforms were implemented in close collaboration with international partners and in keeping with evolving global standards on tax fairness and transparency.
Prime Minister Hon. Philip J. Pierre stated:
“Saint Lucia has demonstrated that small states can meet the highest international standards while safeguarding their economic sovereignty. Our removal from the EU lists was not incidental. It was the result of deliberate, responsible legislative action and sustained engagement. We remain firmly committed to transparency, fairness, and cooperation within the global financial system.”
The successful completion of these reforms has reinforced Saint Lucia’s credibility among international partners, financial institutions, and investors. By eliminating harmful tax practices and strengthening regulatory oversight, the country has positioned itself as a transparent, rules-based jurisdiction aligned with OECD and EU principles.
The Government says it views tax compliance not merely as a listing exercise, but as part of a broader strategy to protect correspondent banking relationships, safeguard access to international financial markets, support investor confidence and promote sustainable economic growth.
Saint Lucia continues to monitor developments in international tax policy, including evolving OECD and EU standards, to ensure ongoing compliance and policy coherence.
The next scheduled review of the EU list of non-cooperative jurisdictions is expected in October 2026. Saint Lucia remains fully compliant and committed to maintaining its cooperative status.