Panamahotproperties.com provides legal services to its clients when its about establishing a foundation Foundations of Private Interest, since their incorporation to Panamanian law in 1995, have served as an innovative instrument for asset protection, similar to the foundation structure found in Liechtenstein, with the advantages of greater flexibility and considerately lower price (both in its creation and maintenance).
In Panamanian Foundations of Private Interest, a person, either natural or juridical, donate assets to the Foundation in order to satisfy its purposes, which are previously established in the Foundational Charter, similar to the Articles of Incorporation required for Panamanian corporations.
It is necessary to institute a Foundational Council, which is composed of three natural persons or juridical person, which will direct the foundation. There is also the figure of the Protector, which can be appointed to control and oversee the foundation’s activity.
It is very important to mention that for all legal purposes the Foundation’s assets are of its exclusive property, constituting an independent estate from the founder’s or the beneficiaries’ own assets. This meaning that it is not possible that any of the foundational assets be seized or sequestered in order to pursue obligations or claims (lawsuits, divorce, etc) of any kind that the founder may have. Even though the Foundation itself cannot take part in commercial activity, it is permitted that it holds shares in corporations that do.
Why choose a Panamanian Foundation of Private Interest?
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Strong Foundation Law. Panamanian Foundation law is ample and flexible, and hasn’t suffered modifications. This is why Panama is home for more than 400,000 entities!
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Independent Assets. Foundation’s assets are of its exclusive property, constituting an independent estate from the founder’s or the beneficiaries’ own assets. This meaning that foundational assets cannot be seized or sequestered in order to pursue obligations or claims (lawsuits, divorce, liabilities) of any kind that the founder may have
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Versatility. The foundation can hold shares of a corporation engaged in business activities, even when the foundation itself cannot carry out commercial activities. A Panamanian foundation can be owner of real estate, brokerage or bank accounts.
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Confidential Ownership. Neither the Protector’s nor the Beneficiaries’ personal information are of public record, since they are appointed by means of private documents.
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No paid-in capital. Foundation Law does not require paid-in capital.
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Tax Friendly Jurisdiction. Foundations are not required to file tax reports. Additionally, there is no income tax, capital gains tax, interest tax, sales tax nor any of the burdensome taxes paid in other jurisdictions.
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No restriction on nationality of Council Members. The totality of the Council Members can be foreigners.
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No Reporting Required. There are no requirements concerning either accounting books or transaction records of any kind for Foundations.
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Bookkeeping. Besides the Minute Book, which you can hold in any place in the world, there is no additional bookkeeping neither for you or the Registered Agent.
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Convenient Council or Beneficiaries Meetings. The Council (Directors) or Beneficiaries can be held by proxy, either telephonically or any other electronic method, anywhere in the world.
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Annual Government Tax. Panamanian corporations and foundations pay only an Annual Government Tax of $250.00 to the Ministry of Economy and Finance at the moment of incorporation. This tax is $300.00 for the subsequent years.
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Change of Domicile. Foundations from abroad are being re-domiciled in Panama, taking advantage of the privacy and reduced maintenance cost offered by Panamanian Jurisdiction. Panamanian foundations can also be re-domiciled overseas.
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No travel necessary. Your foundation will be set up by our staff members and sent directly to your home or office!
To proceed on incorporating a Panamanian Foundation or other additional services please contact us! info@panamahotrealestate.com