Panama Private Interest Foundations

About the Panama Private Interest Foundations

Concept.

While similar to a trust, this distinguished legal entity maintains its own legal status, much like a corporation. The Private Interest Foundation is formed through the donation of assets belonging to a person or group for specific purposes, as outlined in its foundation charter. Once a Panama foundation has been established, it can be used to own property, open bank accounts, exercise various rights, and fulfill acknowledged obligations.

The main difference between a Private Interest Foundation and other types of foundations lies in its purpose. This type of foundation is not created for public benefit, but for purposes associated with private interests, which is only permitted in select countries. Unlike a commercial company, a Private Interest Foundation has no shareholders or partners. A Private Interest Foundation cannot be used to engage directly in business or profit-yielding activities, with certain limited exceptions under Panama foundation law. Our team is available to assist you in navigating the process of setting up, understanding key information, and managing your Private Interest Foundation. We also offer assistance for banking in Panama after your foundation has been established.

Benefits of Private Interest Foundations

Setting up a Private Interest Foundation in Panama offers several benefits for individuals and other entities. A key benefit is that Private Interest Foundations offer confidentiality, as Panama has strict laws regarding privacy. This makes this a good option for individuals seeking privacy in their financial transactions. Depending on the structure of the foundation, founders may also enjoy tax benefits.

Foundations can also exist for extended periods, even indefinitely, though the founder governs the duration. While trusts will only last for a limited period of time, a Private Interest Foundation allows founders to make long-term investments and financial plans that can last into perpetuity. Explore our Advantages page to learn more about why setting up a Private Interest Foundation is a great option for certain individuals.

Banking and Retiring in Panama

Panama is an attractive destination for individuals seeking asset protection. Establishing a Private Interest Foundation can be a key step for individuals retiring in Panama, as it provides a structured way to manage wealth, protect assets, and verify financial security for future generations. Some retirees may use a foundation to hold investments or savings accounts, allowing for smoother management while enjoying life in Panama.

When retiring in Panama, it is key to understand how banking in Panama integrates with your Private Interest Foundation. Panama’s banking sector is internationally recognized for its stability and confidentiality. Once your foundation is set up, banking in Panama can be a streamlined process; foundations can involve corporate or personal accounts to manage income, pensions, and investments. Whether you plan to manage international income streams or simply enjoy your retirement years, combining a Private Interest Foundation with strategic banking in Panama offers both security and flexibility.