Panama Foundations

Panama Private Foundations are modeled after Liechtenstein Private Foundations. Panama Private Foundation legislation was passed in 1995 encouraging the incorporation of thousands of Panama Foundation. Panama Private Foundation has many uses, they are frequently used for tax purposes, management and protection of assets, will among others. Foundations can be described as a hybrid entity comprising of part will, part corporation and part trust.

Dual citizenship arises whenever an individual is the citizen of two countries. We offer a series of offshore solutions including helping interested families with presenting applications for citizenship by investment programs in Dominica. Citizenship is often obtained through permanent residence after having met the requirements for citizenship or but there is also a route which involved making an investment in a country’s economy which will qualify the investor to apply for citizenship. There are structured systems in place such as the St. Kitts passport program which encourages families and single investors to apply for a St. Kitts passport. Due diligence is important in these programs so as to preserve their reputation and ensure the integrity of the program for many more years. Dominica too has an amazing citizenship program which encourages families to get a second citizenship. Successful applicants are able to own vacation homes, property and land and own a business overseas. The benefit is that of earning an extra source of income which can be saved in a savings account for rainy days. Our team is very experienced in offshore company formation. International business companies are tax free and offer many opportunities for trade and investment overseas. We offer various asset protection tools such as offshore trusts and foundations which aim to preserve wealth and assets.

Panama foundations are exceptional asset protection tools. A foundation has no owner therefore assets transferred into it belongs to the foundation and no one else. Assets in a Panama Foundation cannot be used to repay the debts of any of the foundation members (founders, protector and beneficiaries). This makes it impossible for the assets within a foundation to be handed over or seized in civil litigations or similar cases.

Panama Private Foundations can be used as will which is used to determine who inherits the wealth of a family or corporation. The Panama Private Foundation is governed by a Foundation Charter. In this Foundation Charter it is stated who inherits (beneficiaries) the assets of the foundation and in what proportion. The foundation in effect prevents forced heirship and guarantees that the wealth of the foundation will be around for some time.

Foundations can be used to manage assets for those persons who cannot do so for themselves. This includes minors. Again the clauses of the Foundation Charter will determine for what purposes wealth should be used and how it will be disbursed.

Panama foundations are prohibited by legislation to engage in habitual commercial business practices but they can own shares, bonds and stock as long as it is in the interest of the beneficiaries. A Panama Foundation therefore can own a corporation through which it legally conducts its business affairs. This is especially advantageous to persons from countries who are heavily taxed by their governments for owning shares in foreign companies. Such persons can use a Panama Foundation to won a corporation without having to submit a tax report to their government since a Panama Private Foundation has no owners.

Panama Private Foundations according to the Panama Foundation laws will pay no local taxes if its assets are gained outside of tax free Panama. Furthermore the foundation is exempted from stamp duty on transactions or amendments made on behalf of the foundation. A Panama Foundation only pays local taxes if it owns real estate in the Republic of Panama. Foundations in Panama are obligated to pay to the Government of the Republic of Panama and annual fee.

Foundations in Panama can be formed by persons of any nationality. There are four main elements to a Panama Foundation; the founder, council, protector and beneficiaries. The founder forms and registers the foundation, the council which must be no less than three persons play the role of board of directors of the foundation, the protector control all the assets in the foundation and the beneficiaries will inherit the assets.

To form a Panama Foundation a Foundation Charter must be set up which includes the names and address of the foundation, the duration, the names and addresses of council members, the names of the beneficiaries, assignation of assets and how the foundation should be liquidated among others.

Panama Foundations are very inexpensive to incorporate and easy to manage. Panama Foundations has a very good reputation around the world. The information on the Foundation Charter is not made public therefore confidentiality is guaranteed.

A Panama Private Foundation Used For Asset Protection & Tax Planning