A Panama Private Interest Foundation protects your wealth and inheritance.
With a Private Interest Foundation of Panama, your assets are protected and a tax-exempt inheritance succession system, which guarantees the beneficiary’s will, is created. With a Private Interest Foundation of Panama, you can also revoke the legitimate parties of a succession.
The personal data of the beneficiaries, as well as the way the Foundation is managed are guarded privately. Therefore, it’s a formidable tool these days for protecting your assets. Currently, the Private Interest Foundation of Panama are used for administering ICO, tokens, NFT and other digital assets or assets and real estate.
Advantages of a Private Interest Foundation of Panama
The benefits of a Private Interest Foundation of Panama are very diverse. For example, its annual maintenance to keep up its validity costs only 700 Euros. Furthermore, the Foundations are also exempt from paying taxes on income, and interest on your assets, as long as they are obtained abroad.
Another big benefit of the Private Interest Foundations of Panama is their confidentiality. The internal regulations, with the beneficiaries’ names, the protector, as well as the distribution of the assets, are safeguarded privately. This regulation is never entered into the Public Register. This way, the identity of all beneficiaries is protected.
According to Private Interest Foundation Law, those who share information about the Foundation’s operations will face criminal or civil sanctions. Panama also permits a foundation structure that facilitates the management of the patrimony. For example, for legal effects, Foundations consider your patrimony as separate in relation to the founder’s or beneficiary’s assets.
The Foundations can open a bank account, in its name; meanwhile, the person who receives the Foundation’s control is who, publicly, control’s said account. The Foundation’s board is in charge of administering each Foundation. Panamanian law permits this board to be made up by natural persons or by a legal person or a bank.
Panamanian law doesn’t contain any restrictions about the nationality of the Foundation’s title bearer, nor that of the beneficiary, protector, or the members of the Foundation’s Board. In addition, it’s not necessary for these persons to be residents of Panama.
What is the difference between a trust and a foundation?
Both instruments have points in common and differences. A trust is a contract established between the trustor and the trustee, through which one places his assets into the custody of the other. Normally, a Trust is made for a specific operation.
Meanwhile, the Private Interest Foundation has the status of legal entity and can be the holder of assets. It’s generally perpetual and guarantees the heirs that the beneficiary establishes in a private document. The patrimony of a Foundation is by law unattachable, except in the case of doubts contracted by the Foundation itself or of fraudulent transfers by the Founder, to avoid financial responsibilities in the face of creditors.
Article 3 of the Private Interest Foundation Law says that “foundations can’t be for-profit. Nonetheless, they can carry out commercial activities in a non-habitual manner, or exercise the rights originating from titles representative of commercial companies that integrate the foundation’s patrimony, as long as the financial result or product of those activities are dedicated exclusively to the ends of the foundation,”
So, the Private Interest Foundation can buy and sell assets like real estate, stocks, bonds, cryptos, etc.