Private Interest Foundations in Panama
Overview
Private Interest Foundations were originally created in Liechtenstein, as a new legal entity that brings together the benefits of the Trusts, for asset management; with the practicality of the Corporations, for its legal existence and structure.
The Private Interest Foundations (P.I.F.) were created in Panama by Law 25 of June 12th, 1995, and since then, they have become a great legal instrument both for holding and protecting assets.
Panama Private Interest Foundations cannot engage in commercial businesses, although it may own investments such as real estate, company’s stocks, or bank accounts.
Our law firm has long experience forming Private Interest Foundations for our clients, either to hold real estate, company’s shares, brokerage accounts or bank accounts in Panama, as well as in other countries.
Benefits
- By Law, the Private Interest Foundation’s assets are not subject of being sequestered by acts of its founder, board members or beneficiaries
- Great for Family Assets’ structures
- It is a combination of a foreign trust and a foreign company
- Differently from a Corporation, the Private Interest Foundation has no owner, but a founder (the granter) and the beneficiary (the grantee)
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If you have further questions, we invite you to visit our Frequently asked questions for additional insights.
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Frequently Asked Questions
A: Private Interest Foundations (PIF) are the best choice for Estate Planning, so that, in case that you have different assets, such as real estate and bank accounts, they can be hold by your PIF, so that your declared heirs can inherit them automatically, without going through an expensive and long Probate Process.
A: Private Interest Foundations (PIF) pays US$400.00 of annual tax, as a government fee for its right of existence. Additionally the resident agent might charge his own fee to represent the corporation.
A: Panamanian law requires Private Interest Foundations (PIFs) to have a resident agent, who must be an authorized attorney or law firm.
A: The Public Registry of Panama is the state institution where legal entities are registered under Panamanian law, including both domestic and foreign entities conducting activities in Panama. It is recognized as one of the most efficient and modern registries in Latin America.