Private interest foundation   

 The Private Interest Foundation is an entity created to manage assets, capital or shares in accordance with the directives of a Founder in favor of a Beneficiary.

The Founder can also be an International Business Company.

The Private Interest Foundation is an excellent instrument for asset protection and tax planning.

The Foundation can manage assets and values, pursue educational purposes and generate income, provided that they are reinvested, according to the nature of the Foundation.

The law encourages the constitution of Foundations by patrimonial and fiscal facilitations.

Among the advantages of the Foundation stand out:

  • Low capital of constitution: USD 10,000.00, which does not have to be paid at the moment of constitution
  • Asset protection: the assets of a Foundation cannot be seized or confiscated
  • Assets of the Foundation are separate from the assets of the Founder
  • -Wealth Management: the Foundation, for example, can be used in matters of inheritance to avoid the complexity of the ordinary inheritance procedure, with lower costs and times.

Taxation:

  • Income produced abroad is exempt from taxes in Panama (territoriality principle);
  • Foundations do not pay taxes on income, wealth, inheritance, real estate, money transfers, foreign exchange transactions and deposits in local banks;
  • Foundations only pay a Flat Annual Fee of USD 350.00 the first year and USD 400.00 the following years.