Foundations in Panama
Assets Protection
Are you looking to establish a Foundation in Panama but unsure of the benefits and drawbacks?
Setting up a foundation for asset protection can be a useful strategy for individuals or organizations with significant assets that they wish to protect from potential creditors, lawsuits, or other risks.
A private interest foundation in Panama can provide a range of benefits, including asset protection, estate planning, and charitable giving.
When considering the use of a foundation for asset protection, it is essential to engage in meticulous planning and give due regard to the laws and regulations that govern foundations in the relevant jurisdiction.
How we can help
Who may benefit from setting up a foundation for asset protection?
High net worth individuals: Individuals with substantial wealth may use a foundation to protect their assets from potential lawsuits or creditor claims.
Business owners: Business owners may use a foundation to protect their personal assets from business-related risks or to protect business assets from personal risks.
Family offices: Family offices, which manage the financial affairs of wealthy families, may use a foundation as part of their overall asset management strategy.
Charitable organizations: Charitable organizations may use a foundation to protect their assets and ensure that they are able to continue to carry out their charitable mission over the long term.
Estate planning: Foundations can also be used as part of an estate plan to transfer wealth to future generations and protect assets from estate taxes and other potential risks.
It is important to note that private foundations in Panama are subject to Panamanian laws and regulations, and may also be subject to the laws of the countries in which they operate.
End-to-end programs.
Setting up a foundation in Panama can be a complex process, but with PANAMA LEGAL EXPERTS on your side, you can be confident that your foundation will be structured and managed in a way that meets your specific needs and goals.
Our team of legal and financial experts has years of experience navigating the complexities of Panamanian foundation law and can provide you with the guidance and support you need to set up your foundation with confidence
"Experience is the best teacher, and when it comes to setting up a foundation, you want to trust the experience of professionals who have helped many clients successfully navigate the process."
Our Services Include
1. Legal advice and guidance
Receive advice and guidance on the legal requirements for setting up a foundation in Panama, including the necessary documentation and registration procedures.
2. Structuring the foundation
Our law firm can help structure the foundation in a way that meets the specific needs and goals of the individual or organization, including the foundation's purposes, beneficiaries, governance structure, and asset protection measures.
3. Drafting legal documents
Before anything it is important draft the necessary legal documents, including the foundation's articles of incorporation, bylaws, and any other required documentation.
4. Registration and compliance
Panama Legal Experts can assist with the registration process and ensure that the foundation complies with all legal and regulatory requirements in Panama.
5. Ongoing legal support
Feal at ease with ongoing legal support for the foundation, including advice on governance, compliance, and any legal issues that may arise.
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Frequently Asked Questions
A Panama Private Interest Foundation is a legal entity that is established under Panamanian law for various purposes, including asset protection, estate planning, and charitable giving. A Panama foundation is typically managed by a board of directors, and its assets are held in a separate legal entity that is distinct from the foundation’s directors or beneficiaries.
Besides asset protection and wealth management, a Panama private interest foundation can also be used for other purposes, such as:
Estate planning: A private interest foundation can help in planning for the transfer of assets to future generations while minimizing taxes and avoiding the probate process.
Charitable giving: A foundation can be used for charitable purposes, such as funding research, supporting education or providing aid to the disadvantaged.
Investment management: A foundation can act as an investment vehicle to manage assets and generate income.
Business ownership: A private interest foundation can hold shares in a company or be used as a vehicle for holding and managing business interests.
Family governance: A foundation can help families to establish governance structures for managing their affairs, assets and interests, while maintaining confidentiality and privacy.
A Panama foundation can provide asset protection by separating the assets held by the foundation from the personal assets of the foundation’s directors or beneficiaries. This can help to shield the assets held by the foundation from potential creditors or legal claims.
A Panama foundation can hold a variety of assets, including cash, securities, real estate, and other assets. The specific assets held by the foundation will depend on the goals and objectives of the foundation.
Yes, a Panama foundation can be used for tax planning purposes, depending on the specific tax laws in the relevant jurisdiction. A Panama foundation may be subject to tax in Panama or in other jurisdictions, and proper tax planning is crucial to ensure that the foundation is structured in a tax-efficient manner.
Yes, a Panama foundation can be used to protect assets from potential lawsuits or legal claims. However, it is important to note that the effectiveness of a Panama foundation for asset protection may depend on the specific laws and regulations governing foundations in the relevant jurisdiction.
Setting up a Panama foundation for asset protection requires careful planning and consideration of the laws and regulations governing foundations in Panama. It is recommended to seek the advice of a legal and financial professional with expertise in Panamanian foundation law to ensure that the foundation is structured and managed in a way that meets your specific needs and goals.
The cost of setting up a foundation in Panama can vary depending on a number of factors, including the complexity of the foundation structure, the legal and financial services required, and the specific fees charged by the service providers involved in the process.
Here are some of the common costs associated with setting up a foundation in Panama:
Legal fees: Legal fees for setting up a foundation in Panama may range from a few thousand dollars to tens of thousands of dollars, depending on the complexity of the foundation structure, the number of legal services required, and the hourly rate charged by the law firm.
Incorporation fees: The fees for incorporating a foundation in Panama can range from a few hundred dollars to several thousand dollars, depending on the type of foundation, the specific registration requirements, and the fees charged by the relevant government agencies.
Notary fees: Notary fees for certifying and registering the foundation documents can range from a few hundred dollars to several thousand dollars, depending on the complexity of the foundation structure and the fees charged by the notary public.
Accounting and audit fees: Depending on the size and complexity of the foundation, accounting and audit fees may be required to ensure compliance with Panamanian regulations, which can range from a few thousand dollars to tens of thousands of dollars per year.
Overall, the total cost of setting up a foundation in Panama can range from several thousand dollars to tens of thousands of dollars or more, depending on the specific needs and requirements of the foundation. It is recommended to seek advice from a professional with expertise in Panamanian foundation law to obtain a more accurate estimate of the costs involved.
The time required to set up a foundation can vary depending on the jurisdiction and specific requirements. In Panama, it typically takes 2-3 weeks to establish a private interest foundation once all the necessary documentation and fees are submitted. However, the exact timeframe can be influenced by factors such as the complexity of the foundation’s structure, the processing time of the local authorities, and any legal or regulatory considerations.
