Law 25 of 1995 about Private Interest Foundations

Law 25 of June 12, 1995 is in charge of regulating Private Interest Foundations in Panama. These foundations must be constituted without lucrative purposes, but they may carry out commercial activities as long as the result of such activities is exclusive to the foundation.

Characteristics of Private Interest Foundations

According to Article 17 of this law, foundations are formed by a Foundation Council of at least three people. In addition, foundations do not have a limit of beneficiaries which may be natural or legal persons of any nationality. Their constitution is composed of a foundation act which must include the following elements:

  • Name of the foundation that is different from an existing one. This name must include the word “foundation.
  • The initial patrimony must be at least ten thousand balboas equivalent in any currency.
  • Address of the foundation.
  • Name and address of the resident agent.
  • Purpose of the foundation.
  • Designation of the beneficiaries of the foundation.
  • Duration of the foundation.
  • Any other clause that the founder considers convenient.

According to article 318 of the Panamanian Fiscal Code, the foundation must pay at the time of registration and the following years an amount of US$300 to maintain its validity.

Read the full law about Private Interest Foundations in Panama here:

Law 25 of 1995

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Published April 19th, 2018, as Laws on Business by Johana Sum