Panama Private Foundation

The "PANAMA PRIVATE FOUNDATION" is an innovative legal concept revolutionizing the asset management world, inheritances, and wills. This entity was created by Panamanian lawyers in 1995 in response to a worldwide need for an easy management entity with a simple registration process and more flexibility than similar systems used worldwide for the administration of patrimony and asset protection. The Panamanian Private Interest Foundation has successfully competed with countries with "Common Law Trust" traditions and with "Familien Stiftungen" in Germanic countries with civil law.

A person (natural or legal) as the Founder "creates" a legal entity to transfer assets (real estate, shares, accounts, etc.) into it. In turn, this legal entity manages with "council" those assets in favor of particular beneficiaries, who have been appointed in a private document known as "bylaws."

All this structure is established in a public document known as the "Foundation Charter" jointly with a private one known as "Regulations or Bylaws." Additionally, it allows different types of asset protection or inheritance options with a Private Interest Foundation.

A "protector" figure can be appointed to execute the bylaws for the Beneficiaries. Upon proper formation, the client could initiate the process of transferring assets or the bank account opening on behalf of the Panama private foundation.

In a trust, the assets are transferred into the name of the trustee directly. Being the Panama foundation a legal person, the assets are transferred into the name of the foundation itself.
In a trust, the trustee is usually one or several “professionals”, but in a foundation, the “trustee” is the “foundation Council” that could be a professional, a legal entity, or 3 natural persons
In the common law world, a trust is considered an “agreement”, instead a Panama foundation is a “legal person” itself
A trust law does not protect against future claims against the settlor from creditors. The Private Interest Foundation law has very clear provisions limiting claims against the founder.
A trust and a foundation are both regularly used to buy real estate, manage bank accounts, investment accounts, stocks, and mutual funds management, and a testamentary system to distribute family wealth.

You could achieve asset protection, privacy, and a testamentary plan
No payment of taxes within the Republic of Panama
It has a flexible formation that allows you to achieve private control of your assets
Non-annual tax return on foreign income
Non-taxes on local Banks profits
No paid-up or start-up capital is required.
Non-perpetuities rules or minimal capital
Members may be individuals or corporations of any nationality.
Once the due diligence forms complete the formation can be done in approx. 1 week.