Caymans Placed on EU Blacklist As Non-Cooperative Country

As of February 18, 2020, the European Union has placed the Cayman Island on its “Blacklist” of counties deemed non-cooperative for tax purposes.  Depending on what agreements each of the EU countries has with the Cayman Islands and what tax consequences each has with the islands, there may be tax consequences of this Blacklisting.  As Germany and Italy have information sharing agreements, there may be no immediate consequences for their citizens who have income derived from the Cayman Islands, while citizens of France may face more stringent consequences.  Citizens of the U.K. likely face no immediate consequences.  That said, it is believed that the Cayman Islands will work to remove itself from the Blacklist to avoid any reluctance to use the Cayman Islands as a tax haven.