| Panama Foundation Ultimate offshore structure for privacy and tax protection The Panamanian Foundation structure was codified into law in 1995. While this structure is a fairly new entity for Panama, the Foundation structure itself has existed in Liechtenstein for quite some time and the Panamanian structure was in fact modeled after the Liechtenstein legislation. Advantages of the Panamanian Foundation The Assets placed inside a Panamanian foundation are sole and separate property and cannot be seized to satisfy any personal judgements or obligations of the founder or the foundation’s beneficiaries. Assets inside a Panamanian foundation cannot be attached in order to satisfy any claims against the founder, including judgements for divorce, lawsuit and other liabilities. The Panamanian foundation offers the best of a trust and the best of an offshore corporation. In general, people who wish to control and maintain ownership of foreign corporations can do so through the proper use of Panama Private Interest Foundations. In the event they do not wish to own their corporations themselves directly, due to the Controlled Foreign Corporation (CFC) rules in their home countries, the Foundation provides an excellent alternative. Instead of holding the corporation’s shares in their personal name or in bearer form, they establish a Panama Private Interest Foundation that holds or owns the shares of the Belize IBC, thus avoiding the CFC reporting rules. The advantage of using the Panama Private Interest Foundation as a shareholder for their IBC is to remove ownership from one’s own personal name (or through a Bearer Share arrangement) and transfer ownership to the name of a foreign entity which does not have owners, rather has private appointed beneficiaries, which can be anonymous. In this way, there is no question as to who owns the company, since the company’s shares are issued in the name of the Panama Private Interest Foundation. While the foundation cannot technically engage in business activities, it owns the shares of the Belize IBC engaged in business activities. It is also permissible for the foundation to engage in any activity, which will increase the value of assets. This means that a foundation can be the owner of bank accounts, securities brokerage accounts and real estate holdings. Since there are no shares of ownership in a Panamanian foundation, the founder does not own the foundation and as such gains important tax reporting and protection benefits with this. In reality, there are quite a number of practical uses and strategies for the Panamanian Foundation. As an asset protection vehicle, there is probably no better entity in any jurisdiction at the present time for this purpose. For more information on how to use a Panamanian foundation as part of an overall asset protection strategy, and to hear about ways we have assisted other clients, please contact our office. Additional Benefits - Client can serve as "Protector" for Foundation and maintain control anonymously as protectors are not publically listed
- No Reporting Requirements or Taxes: Panama does not impose any reporting requirements or taxes for Panamanian Foundations
- Anonymous Ownership and Control: The Protector and Beneficiaries need not be publicly registered. Panama Foundations Protectors can be appointed through a Private Protectorate Document, and the Beneficiaries can be appointed through a Private Letter of Wishes, written and signed by the Private Protector
- No Capital Requirements: Panama Foundations do not require Paid-In Capital
Taxation in Panama Foundations based outside of Panama are free for any and all taxation. Package includes: - Panama Foundation (Private Interest Foundation)
- Belize IBC owned by the Panama Foundation
- Nominee council members for the Panama Foundation
- Cyprus offshore bank account with complete online banking and debit cards
Annual Fees The annual fees of the foundation and IBC are € 900 per year. All fees are payable commencing the second year. Order a Panama Foundation Package with Offshore Banking 
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