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, which are outlined in its foundation charter. Once a Panama foundation has been established, it can be used to own property, open bank accounts, exercise a range of rights, and answer 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. Additionally, 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 help you navigate the process of setting up and managing your Private Interest Foundation. We also offer assistance for banking in Panama after your foundation has been established.
Practical uses.
To guarantee a family’s financial security.
The foundation can be used to provide annuities and pensions, aid minors, support children’s education, serve as a beneficiary, and, in general, verify the coverage of expenses and maintenance of members of a group or family.
Alternative to a will.
A Private Interest Foundation offers greater flexibility and can be employed to avoid circumstances of mandatory heirs who would otherwise receive a percentage of the inheritance.
Alternative to a holding company.
With a private interest foundation, you can own any type of assets, shares, or bonds of other entities or corporations. This involves a high degree of privacy and can also be used to protect and manage investments in stocks, funds, crypto, blockchain keys, and real estate property.
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 privacy laws. 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.
Set Up Your Private Interest Foundation Today
The Mata Pitti team is available to help you set up your Private Interest Foundation quickly and efficiently. Consulting with legal professionals will verify that your foundation is compliant with Panamanian law and meets your specific needs and goals. We also offer guidance on retiring and banking in Panama for interested individuals. Reach out to our team today to get started.
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