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Foundations of private interest in Panama

Private foundation in Panama is a combination of a will, trust, and corporation. It is the ideal structure for asset protection and estate planning.

Those involved

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  • The founder or subscriber, to be provided by the agent. The Founder has no control over the Foundation and its affairs, and is recognized only as the person who files his Constitutional Charter.

  • Members of the Foundation Board (equivalent to the Board of Directors of companies) A minimum of one corporate member or three (3) individual members, a combination of corporate and individual members is also possible. As a matter of public record, it is possible to obtain candidates through the agent.

  • The client requests the establishment of the structure.

  • The beneficiaries named in the statutes and therefore not a matter of public record.

  • The protector (not mandatory), which may be a corporation or a natural person. Ensures that the basic objectives are met. Its powers may be freely established in the Constitutional Charter and the Regulations and in a private deed.

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       Benefits of the Panama Foundation:

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  • The protection of assets, which cannot be subject to any protective measures. Not all assets of the foundation can be reached by creditors.

  • No paid-up capital requirement. There is no requirement to file tax returns. Books and records may be held in Panama or abroad. The management and operation of the Foundation is not subject to the control of any governmental authority.

  • Estate planning and testamentary use. Foundations can be used to ensure the financial well-being of family members according to your explicit instructions, thus avoiding long and costly legal proceedings. It is an effective substitute for wills and trusts. The Panamanian Foundation is a perfect vehicle for estate planning between life and death cause, as it can be formed to remain in perpetuity as long as the Foundation’s goals continue to be met. This can prevent hereditary conflicts, as well as avoid the rules of forced heir.

  • In general, private foundations cannot engage in commercial activities like a company, but they may carry out commercial activities sporadically and to achieve the objectives of its creation and obtain benefits for its beneficiaries.

  • The Foundation may pursue scientific, philanthropic, religious, humanitarian or educational purposes. 

  • The Foundation can hold a bank account, be an investment vehicle for real estate, stocks, and bonds. It can contain boats, airplanes, works of art, collectibles or other assets with very specific instructions on how these assets should be treated in various circumstances, all tailor-made to suit your specific needs. Copyright, copyrights, trademarks can be transferred to the Foundation.

  • The Foundation Charter may provide that any controversy arising in connection with the Foundation shall be resolved by arbitration, thus avoiding the public record of disputes. These provisions may also include the place and rules of procedure to be followed in the arbitration.

  • Tax benefits: The transfer, transfer, or gift of assets to the Foundation is not subject to any tax under Panamanian law, nor the organization, modification, or dissolution of the Foundation. The income generated by the Foundation’s assets is not subject to taxes, contributions, rates, or privileges of any kind.

  • Revocability. Although the foundation is generally irrevocable, it is possible to revoke its creation in certain circumstances. The foundation may be created to take effect on a certain date, on the occurrence of certain events or conditions, or on the death of the founder.

        It only takes 5-7 business days to create a Panama Foundation.

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        Installation Fee – 5100 USD which includes:

  • Constitutional Charter of the Foundation

  • certificate of incorporatio

  • regulations

  • Appointment of Protected

  • power of attorney

  • Letters of resignation not dated and signed by the members of the Council. 

  • First year government fees

  • Appoint corporate or individual board members

 

    Renewal Fee – $3,100 (includes Resident Agent Fees, Corporate or Individual Board Nominees, Government Fees

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