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What is a Foundation?

Foundations are always made for the benefit of a group of individuals in general, Panama Private Interest Foundations are generally used for estate planning purposes that ensure a safe transition of assets to beneficiaries of the family, the foundation will offers privacy, anonymity and protection to the Founders and Beneficiaries of the Foundation.

Private Interest Foundations in Panama are governed under Law 25 of June 12 1995, consist of one or more individuals or entities, or through third parties and requires the creation of a patrimony exclusively for the objectives or purposes expressly set out in the founding act, this means that the operations for which the foundation was created can not be away from those previously described in the founding act at the time of its formation.

In Panama, a foundation is valid from the time it register with the Public Registry.

It is clear and well explained by the third article of the Law 25 of 12 June 1995 which describes the fundamentals of the foundation can not be for profit. However, they can conduct business in an unusual way, or exercise the rights deriving from titles representing the capital of the companies that make up the assets of the foundation, provided that the outcome or the economic output of such activities be dedicated exclusively the purpose of the foundation.

Foundations Advantages

Within some of the advantages of private foundations that are formed to take effect from the time of its creation or after the death of its founder, by any of the following methods:

1. through a private document signed by the founder, whose signature must be authenticated by a notary public in the place of incorporation. 2. Just before the prescience of a notary public at the time of its formation. 3. By fulfilling all the formalities of the law.

Foundations features

For all legal purposes, the foundation's assets constitute a separate estate of the founder's personal assets. Therefore can not be seized, attached or subject of the action or injunction, except for obligations incurred or damages caused during the execution of the purposes and objectives of the foundation, or the legitimate rights of the Scientific support Professional law essential for all recipients. In no event be liable for personal obligations of the founder or the beneficiaries.

Shall be exempt from all taxes, contributions, fees, charges or taxes of any kind and description, the acts of creation, modification or termination of the foundation, as well as acts of transfer, assignment or encumbrance of assets of the foundation and income such property or any other act on them, provided that such property is: