Privacy.
The anonymity and privacy of the beneficiaries is kept, since their names are not registered in any Public Office. Also there is no legal requirement to disclose the name of the real founder or protector.
No requirement to pay or deposit the Foundation Authorized Capital.
The payment or deposit of the foundation authorized capital is not required for the incorporation of the foundation and there is no deadline to make such payment.
No annual returns filing requirement for activities outside Panama.
No requirements to file annual returns or financial statements; full exemption from taxation of any business activity transacted out of the Republic of Panama.
Management Flexibility.
The Panamanian Foundation offers flexibility, to transfer or to administrate a patrimony on behalf of the same founder or third parties, families, children or inheritors.
The founders and the members of the foundation council may hold their meetings in any country and may be represented by proxy.
Foundation books can be kept privately and aborad.
The foundation books and accounting books may be maintained in Panama or abroad and can be kept by electronic means.
Estate Planning.
Provide a fiduciary structure for the orderly transfer and disposition of the assets to the beneficiaries upon the death of the Founder, keeping control of assets during lifetime.
Inheritance laws that apply in the domicile of the founder or the beneficiaries, shall not be effective against the foundation’s assets nor may these laws affect the validity or performance of the foundation’s objectives.
It is possible to transfer an Offshore Foundation to Panama.
A Private Interest Foundation duly organized in other countries, may be migrated to Panama.
Low incorporation and maintenance cost.
The Panama Private Interest Foundation creation cost and management is very competitive with respect to similar structures of other similar jurisdictions.
Asset Protection.
The Panamanian legislation regulating Foundations, confer upon the Foundation excellent mechanisms for the protection of the same against third party claims.
Founder can be a natural person or a corporate entity.
The Panama PIF Founder can be a natural person or act through a corporation if he desires so.
A superior holding legal structure.
A Panama Foundation allows the investor to perform transactions and investments and to distribute the proceeds generated from the same, with a grade of impenetrability superior to any other type of investment instrument.
Fast incorporation time frame.
Brief Incorporation time frame, approximately 5 business days.
Tax Advantages.
Panama, like many other international financial centers, only taxes income produced or generated by economic activities carried out within the country, and even inside the country there are certain incomes which are tax free. Consequently, someone who utilizes a Panamanian Private Foundation outside of Panama shall not be subject to taxes within the country of Panama, with the exception of the annual franchise tax of US$300.
