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 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 a civil law tradition

Panama Private Foundation

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 on 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 are used worldwide as tools for asset protection and testamentary structures, but each one of them have remarkable differences:  
Panama Foundations
  • 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.  
Advantages of the Panama 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 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. 

Achieve a Legal Asset Protection


Protect your privacy and beneficiaries 


A convenience tax plan


European Civil Law Background


Panama Global Solutions

PGS Attorneys 

An Asset Protection Law Firm

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

Contact us!

About Panama Foundations


© . Panama Global Solutions . PGS Attorneys . +507-3918878 . . Contact us.

panama foundation