Private Interest Foundations
In addition to offering investors the opportunity to create Panamanian Corporations, our legislation allows the incorporation of Private Interest Foundations in Panama.
Law No. 25 of June 12, 1995, provides us with the legal structure for the incorporation of Private Interest Foundations in Panama. This figure is derived from the successful Liechtenstein Family Foundations.
The Private Interest Foundations in Panama, constitute effective instruments for the administration and protection of patrimonies, which present attractive particulars for the interested parties since they, when constituted, acquire their own legal personality, consequently constituting a different foundational patrimony and separate from that of which the founder is the owner.
Benefits of Establishing a Private Interest Foundation in Panama
- The exoneration of certain tax levies and the possibility of avoiding cumbersome and lengthy succession processes whenever the disposition of post-mortem assets is possible, in clear attention to the provisions of the Foundation Pact, its regulations and / or regulations, as unequivocal proof of the founder’s last will.
- The assets of the Private Interest Foundations in Panama are independent and are not part of the patrimony of their founder.
Said assets may not be seized or be subject to any preventive action or measure, except when said measure is related to damages caused by the execution of the Foundation’s objectives.
- Private Interest Foundations in Panama are exempt from taxes resulting from their amendments or dissolution, and likewise from the transfer or mortgage that may result from the assets thereof.
- Foundations constituted according to the laws of a foreign country, can continue their operations in Panama. Likewise, foundations constituted according to Panamanian Laws may continue operations according to the laws of foreign countries.
- The patrimony of the Private Interest Foundations in Panama is administered in favor of a beneficiary who, in accordance with our legal system, can be kept in the strictest confidentiality, since the designation of their identity is not mandatory. in the founding agreement that must be registered in the Public Registry of Panama.
- The Private Interest Foundations in Panama create a similar confidentiality relationship equivalent to the relationships of encrypted accounts and trusts.
Panamanian Legislation on Private Interest Foundations, Law 25 of 1995
Law 25 of 1995 states in its article 3:
«Private interest foundations may not pursue profit. However, they may carry out business activities in an unusual way, or exercise the rights arising from the titles representing the capital of mercantile companies that make up the foundation’s assets, provided that the result or economic product of such activities is dedicated exclusively to the purposes of the foundation »
Services offered by the Firm on Private Interest Foundations in Panama.
Kosmas & amp; Kosmas specializes in carrying out the entire incorporation process of Private Interest Foundations in Panama in a fast and efficient way, including the issuance of their Regulations.
We also provide nominative members of the Foundation Council, in case our clients require it and we make the payment of the Single Rate at the time of establishing the Private Interest Foundations in Panama, and the Foundational Regulations.