The Panama Private Interest Foundation (Fundación de Interés Privado) was introduced in 1995 by Panamanian Law No. 25 and has since been one of the most proven offshore protective structures in the world. It combines elements of a foundation and a company, with the decisive advantage that the assets are legally completely separate from the founder.
The foundation is a separate legal person entered in the Panamanian public registry. You remain the beneficial owner without appearing in the public register. If the foundation is set up correctly, its assets cannot be seized and are beyond the reach of foreign creditors, divorcing spouses and state bodies.
Advantages of the Panama foundation
- Complete legal separation of founder and assets
- Anonymity: beneficiaries do not appear in the public register
- Protection from creditors, divorce and state access
- No inheritance tax on foundation assets
- No local income tax on foreign income
- Bypasses forced heirship rules
- No probate when the founder dies
- Proven legal form since 1995, internationally recognised
How does the Panama foundation work?
The founder transfers assets (capital, property, shareholdings, cryptocurrencies) to the foundation. The foundation is administered by a Foundation Council, which acts in line with the foundation charter. A private register of beneficiaries (the Reglamento, or regulations) determines who benefits from the assets; this document is not public.
Who is the Panama foundation for?
The Panama foundation suits entrepreneurs, investors and owners of wealth who want to protect their capital and property discreetly for the long term, in particular people who are not taxable in the USA and prefer an offshore structure outside the EU.
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