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PRIVATE INTEREST FOUNDATIONS

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Private Interest Foundations in Panama

	~Advantages          ~Legislation          ~Services offered by The Firm Besides offering investors the opportunity to create a Panamanian corporation, our national laws allow the establishment of Private Interest Foundations in Panama. Law No. 25 of June 12th 1995 provides the legal structure for the incorporation of Private Interest Foundations in Panama. This legal entity is patterned after the successful Liechtenstein Family Foundations. Private Interest Foundations in Panama constitute effective instruments for managing and protecting assets, which then become especially attractive, since once the foundation is constituted, the assets acquire their own legal status and are thus distinct and separate from those held by the founder. Advantages of create a Panamanian Private Interest Foundation ▫ Exemption from certain taxes and the opportunity to avoid lengthy and bothersome succession procedures, while permitting postmortem disposal of assets pursuant to the relevant provisions of the Foundation Agreement and its rules and/or regulations as unequivocal evidence of the last wishes of the founder. ▫ The assets of the foundation become legally independent and do not form part of the private assets of the founder.  Those assets cannot be seized or made subject to any action or preventive measures, except

when such action or measure is related to liabilities or damages that may result from the execution of the foundation’s objectives.

▫ Private Interest Foundations in Panama are exempt from the taxes resulting from amendments or termination, and from transfers or liens originating in their assets.

▫ Foundations incorporated according to the laws of a foreign country may continue to operate in Panama. Likewise, foundations incorporated according to Panamanian law may continue to operate in accordance with the laws of other countries.

▫ The assets of Private Interest Foundations in Panama are managed for the benefit of a beneficiary whose identity can be kept strictly confidential in accordance with our laws, since it is not obligatory to identify the person in the foundation agreement that must be recorded with the Public Registry in Panama.

▫ Foundations also provide the same privacy and confidentiality as restricted bank accounts and fiduciary agreements.

Panamanian Legislation regarding Private Interest Foundations, Law 25 of 1995

The Law 25 of 1995 point out in its article 3:

"Private Interest Foundations shall not be profit oriented. They may, nevertheless, engage commercial activities in a non-habitual manner or they may exercise rights deriving from titles representing the capital of business companies field part of a Foundation´s assets, making sure that the economic result or proceeds from such activities are used exclusively towards the foundation´s objectives”.

Download the Law in PDF file

Services Offered by the Firm regarding Private Interest Foundations

Kosmas & Kosmas specializes in rapid and efficient handling of the entire incorporation process for Private Interest Foundations in Panama, including the issuance of Regulations for the Foundations.

We also provide nominee Foundation Board members, should our clients so require, and pay the Flat Rate Corporate Tax upon constituting the Private Interest Foundation in Panama, along with the Foundation Regulations.

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