Incorporation of Private Interest Foundations in Panama

What is a Private Interest Foundation?

It is a non-profit legal entity that allows the management and protection of assets for private or family purposes.

These foundations offer a flexible and confidential structure for wealth administration, allowing founders and beneficiaries to benefit from a high level of protection and tax advantages.

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Advantages of Private Interest Foundations in Panama

Asset Protection and Confidentiality

Separate Estate:

The assets transferred to the foundation constitute a separate estate of the founder, the beneficiaries and the members of the founding council.

High Confidentiality:

The personal data of the founders and beneficiaries is not publicly recorded, ensuring their privacy.

Legal Protection:

The foundation's assets are protected against legal claims and creditors of the founder and beneficiaries, providing a strong defense against litigation.

Tax Benefits

Fixed Annual Rate: You only pay a fixed annual rate of $400.
Exemptions: Tax exemption on assets located outside Panama and on income not generated in Panama, optimizing tax efficiency.

Flexibility and Structure

Unlimited Duration: There is no time limit to the duration of the foundation, offering a permanent structure.
Supervision by Protectors: It allows for the appointment of protectors to oversee the administration of the foundation.
Diversity of Purposes: Possibility of establishing the foundation for any lawful purpose, including charity and pension administration, adapting to various needs.

Incorporation Process

Initial Requirements

To constitute a Private Interest Foundation in Panama, the following requirements must be met:

Founding Act: Document that establishes the creation of the foundation, including the name, the objective, the assets contributed and the beneficiaries.
Foundation Council: Composed of at least three members, who may be natural or legal persons, national or foreign.
Registration: Registration of the Founding Act in the Public Registry of Panama.

Required Documentation

The documentation required for onboarding includes:

Foundation Name: Suggest several options for the name of the foundation.
Complete Data of the Founder(s): Detailed information on those who establish the foundation.
Complete Data of the Members of the Foundation Council: Name, address and photocopy of passports of the members of the founding council.

Common Uses of Private Interest Foundations

These entities are versatile and are commonly used for:

Estate Planning: Ideal for the management and transmission of assets to future generations.
Confidentiality: Protect the identity of beneficiaries and the nature of assets.
Asset Protection: Protect assets against claims and litigation.
Testamentary Instrument: It works as an alternative to traditional wills, allowing for more controlled and confidential distribution.

Additional Services Available at Legalia Panama

Compliance and Management

We offer a range of additional services to ensure the correct operation and management of your foundation:

Modifications and Updates: Change in the Foundation Council, minutes of meetings, and modifications to the Foundation Act.
Continuous Consulting: Compliance with legal and tax regulations.
Document and Permit Management: Obtaining licenses and permits necessary to operate.

Why choose Legalia Panama?

We have a team of lawyers specialized in corporate law and estate planning, with extensive experience in the incorporation and management of Private Interest Foundations in Panama.

In addition, we offer tailor-made solutions adapted to the specific needs of each client, ensuring a personalized and efficient service.

Thanks to our years of experience, today we collaborate with a wide network of professionals and entities in various jurisdictions, facilitating the management of their interests at a global level.