Panama Private Interest Foundations

About the Panama Private Interest Foundations


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 something that is only permitted in select countries.

Additionally, unlike a commercial company, a Private Interest Foundation has no shareholders or partners. A Private Foundation cannot be used to engage directly in business or profit-yielding activities with certain limited exceptions under Panama foundation law.

Practical uses.

To guarantee a family financial security.

The foundation can be used to ensure annuities, pensions, for the support of minors, for children’s education, to serve as beneficiary, and in general, ensure 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.

It is possible to own any type of assets, shares, bonds of other entities or corporations with a Private Interest Foundation. 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.


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