Panama Foundation The Pinnacle Of The Offshore Business Scene

A Panama Private Interest foundation comprises similar elements that make up an offshore trust and a corporation. It is a legal offshore entity offering distinct advantages for international estate planning, with complete anonymity, to hold assets and perform financial services.

Uses of a foundation

An offshore foundation can be established for use by people wanting to control and upkeep the ownership of corporations, without owning them in a direct sense; correctly and legally established, they erase the need to be declared as tax related interests in many parts of the modern world. This is possible due to the fact that a corporation’s shares are held in a private interest foundation in Panama. This is also applicable to the opening of corporate bank accounts and investment accounts. Finally a foundation can also be useful with regard to the transference of monies offshore or receiving from offshore.

The tax reduction advantages of a Panama Foundation

• No income tax or tax reporting needed
• No capital gains or sales tax.
• No tax or transfer tax applicable to beneficiaries
• No capital or property tax (re non-Panamanian property)
• No taxes applicable to estate, gifts, inheritance, succession, inventory or stamp tax.

The constituents of a Panama Private Interest Foundation

There are certain principal constituents to a Foundation: A founder, Protector, council, and the beneficiaries. We shall briefly outline the purpose of each:

Founder-This is a person or structure that is registered for the Foundation in the Public Registry of Panama.

Council-This is similar to a board of directors and also entered in the public registry. To provide anonymity, these are usually provided by ourselves, or can be nominated by the client.

Protector-This is the key person or entity that controls the Foundation. The Protector can maintain this status in complete privacy of public knowledge.

Beneficiaries-This is the alternative to the owner of shares in a normal corporation. They also have complete confidentiality; they are appointed by the Protector who can also be made sole beneficiary until his or her death if so required.

Other related points:

Letter of wishes-A simple document from the Protector stating how the assets should be handled upon their death or incapacity and the continuity instructions if this event should occur.

Foundation By-laws-These are not necessary as the Letter of Wishes is legally admissible for the testamentary instructions, but can be drafted by us upon request.

Of course there are many complex guidelines and requirements relating to a Panamanian Foundation. We have endeavored to give you the simple salient facts which should give you an overview of how things work. We can deliver all the requirements to successfully execute this exciting protection package. We would be delighted to answer any further questions you may have. Please feel free to contact us at any time.