What is a Panama Foundation?

The Private Interest Foundation is an innovative legal concept that is revolutionizing the asset management world, inheritances, and wills. This useful entity was created by Panamanian lawyers since 1995, in response to a worldwide need of 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 a "Common Law Trust" traditions, and with "Familien Stiftungen" in Germanic countries with a civil law tradition

A person (natural or legal) known as Founder, "creates" a legal entity, to transfer assets (real estate, shares, accounts, etc.) into it, so that in turn, this legal entity manages with "council" those assets,  in favor of certain 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 By Laws". Additionally, the person who establishes the private foundation (founder) can be simultaneously: member of the council and beneficiary, granting the possibility of different types of asset protection or inheritance structures with a Private Interest Foundation.

Additionally a "protector" (professional, trustee, lawyer or similar) can be appointed to execute the by laws for the Beneficiaries. Upon the proper formation, the client could initiate the process to transfer assets or the bank account opening in behalf of his/her panama private foundation.

Panama Foundation vs Trust
Being the common law trust the most used system for asset protection for centuries, and maybe you are more familiar with this kind of entity, therefore understand their differences and similarities with a Private Foundation it is essential to consider the formation of such asset protection tool in Panama.  Nowadays, both entities actually are used worldwide as tools for asset protection and testamentary structures, but each one of them have remarkable differences:  
  • 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 laws does not provide protection 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, investments accounts, stocks and mutual funds management, and a testamentary system to distribute family wealth.  
Advantages of the Panama Private Foundation
  • You could achieve asset protection, privacy and a testamentary plan
  • No payment of taxes within the Republic of Panama
  • As a Worldwide tax minimization tool
  • It has a flexible formation which 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 required.
  • Non-perpetuities rules or minimal capital
  • Members may be individuals or corporations from any nationality.
  • Once the due diligence forms complete the formation can be done in approx. 1 week. 
 

Achieve a Legal Asset Protection

PROTECTION

Protect your privacy and beneficiaries 

PRIVACY

A convenience tax plan

TAXATION

European Civil Law Background

BACKGROUND

PGS Attorneys 

An Asset Protection Law Firm

SL55 Tower . 17th floor . Samuel Lewis Avenue . Panama City  
(+507) 391-8878

mail@panamags.com   www.PanamaGS.com

www.PanamaBankAccounts.com

Contact us for more information about Panama Foundations

© www.PanamaPrivateFoundation.com . Panama Global Solutions . PGS Attorneys . +507-3918878 . www.PanamaGS.com . Contact us.