After the Principality of Liechtenstein lay the groundwork for the creation of family and mixed foundations in 1926, the Republic of Panama specifies this European model combining the features of Panamanian corporations, with the typical benefits of trusts to establish a most modern and convenient way what is now known as Private Interest Foundations.

The Private Interest Foundation is a type of entity that is something between a trust and a corporation, however, it is not any of them. The Foundation is a separate entity from any other entity known in the Anglo-Saxon law because it is not a legal personification of a person or group of persons (as it is a corporation), rather it is a legal entity that has no owners (shareholders, partners, participants or associates) and traditionally has a specific purpose for the benefit of a general group of individuals.

The Private Interest Foundation is a legal entity that was developed based on models of Private Foundations in three different jurisdictions, including the Principality of Liechtenstein, Switzerland and Luxembourg. The Panamanian Government carefully designed the Panama Private Interest Foundation with the intention of creating a modern, flexible and affordable estate planning vehicle for the people worldwide. The assets of the Foundations assume separate from the personal assets of the Founder, Protector, Council or Beneficiaries of the legal entity.

The Private Interest Foundation offers clear advantages for personal and family wealth planning, international tax planning and asset protection by the best option in privacy, anonymity, and protection to the Protectors, Founders and Beneficiaries of the Foundation. The Foundation is a solution for a global need of patrimonial accessibility, anonymity, flexibility, planning which can be used to hold assets such as corporations, trusts, bank accounts, investment accounts, real estate, or any other type of assets around the world.

In Panama, a foundation has validity from the time it is recorded in the Public Registry. Any approval by the specific public authority is not required. Law 25 of June 12, 1995 regulates the Private Foundations.

Popularly known as a foundation can be also used for estate planning, where the Founder transfers the current assets and has the foundation to acquire real estate assets and open bank accounts and investment accounts in Panama.

A foundation offers international estate planning and asset protection by holding the shares of corporations.

We can help you establish a foundation or foundations depending on your needs.

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