In 2026, the choice of jurisdiction depends on whether banks and counterparties will accept the company, how much ownership costs and what obligations the owner will take on. The tax rate in the country of registration is far from first on this list. The full method of seven filters is described in the guide how to choose a jurisdiction for an offshore company. This article covers what has changed over the past year and a half and how it affects the choice right now.
Five changes that affect the choice
1. The EU tax “blacklist” of 9 October 2026
The EU Council approved a list of non-cooperative jurisdictions with eight countries and territories: American Samoa, Anguilla, Guam, Palau, Russia, the Turks and Caicos Islands, the US Virgin Islands and Vanuatu. The main news of the October review: Panama and Vietnam were removed from the list and moved to Annex II pending an in-depth review by the OECD Global Forum. The BVI, the Cayman Islands, Nevis, Seychelles, Hong Kong and Singapore are not on the list. EU member states apply defensive tax measures to the listed jurisdictions in a coordinated way, so for business with European clients we advise against registering a company there.
2. The FATF grey list of 19 June 2026
22 jurisdictions are under increased FATF monitoring, among them the British Virgin Islands, Monaco, Bulgaria, Vietnam, Kenya and Lebanon. In June, Bosnia and Herzegovina and Iraq were added to the list, and Algeria and Namibia were removed. The FATF blacklist did not change: the FATF calls for countermeasures against North Korea and Iran and for enhanced due diligence on Myanmar. The next FATF plenary takes place on 28–30 October 2026, and its outcome is worth checking before registration.
3. The EU list of high-risk countries for money laundering
Since 29 January 2026, it has included the BVI, Bolivia and Russia (Delegated Regulations 2026/83 and 2026/46). Panama and the UAE were removed from this list with effect from 5 August 2025. Banks and EMIs in the EU apply enhanced due diligence to business relationships with countries on the list, so a BVI company needs more documents and more time to open an account in Europe.
4. The updated CRS standard and exchange of crypto asset data
The CRS amendments took effect on 1 January 2026 in a number of jurisdictions, including the BVI: certain electronic money products and indirect investments in crypto assets are now included in the exchange, and banks check self-certifications more strictly. Ukraine has joined the CRS MCAA Addendum, and the State Tax Service expects the extended exchange from 2027. Details are in the briefing CRS 2026 for a foreign company owner.
5. Beneficial ownership registers and identity verification
Since 2 January 2025, BVI companies have filed beneficial ownership information with the government register through the VIRRGIN system. In the United Kingdom, since 18 November 2025, Companies House has verified the identity of new directors and people with significant control. In popular jurisdictions, beneficial ownership data is available to registrars, banks and the authorities, and this needs to be taken into account when allocating shares between partners.
How to read the lists
In everyday language, “white” offshore jurisdictions are those that appear on none of the lists. The lists themselves answer different questions. The EU tax list assesses a country’s transparency and tax policy. The FATF and EU money laundering lists assess the quality of control over the financial system. A bank takes all three lists into account and then looks at the specific client: structure, industry, payment countries. A country’s inclusion on the grey list brings more questions from banks. After a country is removed from a list, the bank still checks the company itself.
A map for choosing by task
- Holding company and joint ownership with partners. The BVI and the Cayman Islands: English-style law and documents investors are used to. Comparison: Cayman Islands or BVI.
- Trade with Asia. Hong Kong with its territorial tax and Singapore; see Hong Kong or Singapore.
- Clients in Europe and payments in euros. A UK Ltd with SEPA access, as well as companies in the EU: Cyprus or Estonia.
- Asset preservation and family structures. Nevis and Panama with territorial taxation.
- Quick start. Shelf offshore companies save time on registration; they go through the bank review under the general rules.
Checks before registration
- Describe the company’s task, the clients’ countries and the settlement currencies.
- Check the chosen country against the three lists in their latest versions.
- Get a preliminary answer from a bank or EMI on your structure and industry.
- Calculate the two-year costs using the article what an offshore company costs.
- Check the owner’s obligations under your country’s CFC rules and the economic substance requirements.
If you would like a selection made for your task, describe it in the form below or compare countries on the all offshore jurisdictions page.
Frequently asked questions
Which offshore jurisdiction is the best choice in 2026?
It depends on the task. For a holding company, the BVI or the Cayman Islands are chosen more often; for trade with Asia, Hong Kong or Singapore; for European clients, a UK Ltd or a company in the EU. The deciding factor is usually the bank that will accept the company.
Is the BVI on the EU blacklist?
The BVI is absent from the EU tax list of non-cooperative jurisdictions of 9 October 2026; in this review, Panama and Vietnam were removed from the list. Since 29 January 2026, the BVI has been on a different EU list, that of high-risk countries for money laundering, and since June 2025 it has been on the FATF grey list.
What does the FATF grey list mean for a company owner?
Banks ask more questions about the structure and the money, and the review takes longer. The FATF does not require enhanced due diligence for the grey list and calls for it to be taken into account in risk assessment. EU banks additionally apply their own list of high-risk countries.
When will the lists be updated?
The FATF updates its lists three times a year; the next plenary is on 28–30 October 2026. The EU tax list is reviewed twice a year, usually in February and October.
Is Hong Kong an offshore jurisdiction?
Hong Kong taxes profits from Hong Kong sources at rates of 8.25% and 16.5%. Foreign profits are generally not taxed; since 2023, the exception has been certain passive foreign income of companies in multinational groups with no economic substance in Hong Kong (the FSIE regime). It is a low-tax jurisdiction with a fully fledged tax system, and banks assess it differently from classic offshore jurisdictions.
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