Panama is globally recognized for its robust financial and legal system, offering efficient tools for wealth management and succession planning. Among these tools, private interest foundations stand out for their versatility and benefits.
What is a Private Interest Foundation?
A private interest foundation in Panama is a non-profit legal entity created for the management and protection of assets, intended to meet the objectives established by its founder. Although they do not pursue commercial purposes, foundations may own assets and generate income to fulfill their purposes.
Benefits of Private Interest Foundations
1. Asset Protection: One of the main advantages is the protection of assets against claims and legal proceedings. The assets of the foundation are separated from the founder's personal assets.
2. Succession Planning: Facilitates the orderly transfer of assets to heirs, avoiding complicated and costly succession processes in various jurisdictions.
3. Confidentiality: They offer a high degree of privacy, since the details of the founder and beneficiaries are not publicly available.
4. Flexibility: They can be used for a variety of purposes, including charity, family property management, and investment management.
Constitution process
The creation of a private interest foundation in Panama involves several key steps:
1. Drafting of the Founding Act: Document that establishes the name of the foundation, its objectives, duration and the name of the founder.
2. Initial Capital: A minimum initial contribution of $10,000 is required for incorporation.
3. Registration in the Public Registry: The founding act must be registered in the Public Registry of Panama to grant it legal personality.
Obligations and Maintenance
Maintenance of accounting books and financial statements.
Annual Fee Payment: An annual government fee must be paid to keep the foundation active, in the amount of USD$400.00
Resident Agent Payment.
Conclusion
Private interest foundations in Panama are a powerful tool for asset protection and succession planning. Their flexibility and tax benefits make them an attractive option for individuals and families looking for an efficient and secure solution to manage their assets.
For more information on private interest foundations, please do not hesitate to contact us.
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