PANAMA
FACT SHEET
Panama Private Interest Foundations for Estate Planning
Secure your legacy. Protect your family wealth.
A Panama Private Interest Foundation (PIF) is a flexible and confidential legal structure designed for offshore estate planning, asset protection, and intergenerational wealth transfer. Governed by Panama’s Foundation Law 25 of 1995, it offers international families and entrepreneurs a simple, powerful tool for long-term planning.
Why Use a Panama Foundation for Estate Planning?
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Avoid Probate: Your assets pass directly to your chosen beneficiaries—no courts, no delays.
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Protect Global Assets: Assets placed in a foundation are legally separate from your personal estate—shielded from lawsuits, creditors, or political risk.
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Maintain Privacy: Your beneficiaries and foundation rules remain 100% confidential. Only the basic charter is public.
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Flexible Global Holdings: A Panama foundation can own real estate, companies, bank accounts, investments, and IP—anywhere in the world.
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Control Without Legal Ownership: Structure influence through a Protector or private Foundation Regulations without legally owning the assets.
How It Works
A Private Interest Foundation in Panama is not a company and has no shareholders. It is a legal entity created by a Founder and managed by a Council. It can last indefinitely and be customized for your family's unique needs.
Key Roles:
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Founder: Sets up the foundation and contributes assets.
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Council: Manages the foundation’s affairs.
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Protector (Optional): Oversees the Council to ensure your wishes are respected.
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Beneficiaries: Individuals or groups who benefit from the foundation’s assets.
Common Uses for Panama Private Foundations
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International estate and succession planning
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Holding offshore bank accounts and investments
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Business succession and continuity planning
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Creating a charitable legacy
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Consolidating family wealth under one umbrella
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Protecting vulnerable heirs (minor children, heirs in unstable jurisdictions)
Key Features at a Glance
Who Benefits Most?
This structure is ideal for:
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High-net-worth families with cross-border assets
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Entrepreneurs seeking to protect business continuity
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Expats and international professionals
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Anyone seeking a confidential estate planning solution outside their home jurisdiction
Let’s Secure Your Future
At VISS, we help you set up and manage Private Interest Foundations in Panama with full legal compliance and confidentiality. Our team guides you through the entire process, from structuring to registration and administration.
✉️ Schedule a consultation or contact us at Contact@viss.com.hk.
Frequently Asked Questions
Q: What is a Panama Private Interest Foundation?
A legal entity for estate planning and asset protection, without shareholders or personal ownership.
Q: Can a foundation hold global assets?
Yes, a Panama foundation can hold bank accounts, property, and business shares anywhere in the world.
Q: How does it avoid probate?
Assets are passed directly to beneficiaries as per your foundation’s internal rules, with no court intervention.
Q: Is it better than a trust?
For international families, a foundation may offer greater privacy, asset protection, and flexibility than a traditional trust.
Q: How long does setup take?
Typically 5–7 business days, with fast-track options available.
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No shareholders <> Absolute privacy & control
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No Panamanian tax on foreign income <> 100% tax-exempt for offshore assets
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Fast setup & low cost <> Quick implementation
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No annual filing for non-residents <> Minimal maintenance
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Global asset ownership <> Ideal for international families
PANAMANIAN CORPORATION (S.A.)
Comprehensive Overview for Private Clients, Corporate Service Providers, and CPAs
Introduction
The Panamanian Corporation or Sociedad Anónima (S.A.) is a versatile legal entity used for international commerce, asset protection, estate planning, and corporate structuring. Known for its simplicity, flexibility, and confidentiality, the S.A. operates within a well-established legal framework governed by Law 32 of 1927 and Decree Law No. 5 of 1997.
Whether you're a private client seeking asset protection, a corporate service providerforming global structures, or a CPA ensuring compliance with tax and financial obligations, understanding the Panamanian S.A. is key to delivering value.
General Legal and Operational Framework
Key Advantages of the Panamanian Corporation
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Limited liability for shareholders (only liable up to their capital contribution)
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Flexible management and operational structure
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Fast incorporation process (24–48 hours post-registration)
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Corporate perpetuity (indefinite duration if desired)
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High confidentiality (no public registry of shareholders)
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Tax exemption on foreign-sourced income (e.g., dividends or interest)
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No inheritance tax on share transfers upon death (mortis causa)
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Shelf companies available with no prior activity
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Use of U.S. Dollar as legal tender
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No requirement to be physically present in Panama for incorporation
Key Benefits at a Glance
Incorporation and Structure
Uses and Activities
A Panamanian S.A. may be used for:
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Holding assets: real estate, vessels, aircrafts.
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Managing investment portfolios and bank accounts.
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Owning shares in other companies.
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Conducting international trade and finance operations.
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Engaging in commercial leasing, loans, commissions, and service contracts.
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Holding IP rights and digital assets.
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Facilitating M&A transactions.
Private Clients: What You Should Know
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Estate & Wealth Planning:
Can hold real estate, bank accounts, and securities. Works well with private interest foundations for succession planning.
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Global Banking:
Recognized and accepted by financial institutions worldwide.
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Discretion & Control:
Shareholders are private. Nominee director services are available for enhanced confidentiality.
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Mortis Causa Transfers:
Shares can be passed on without inheritance tax under Panamanian law.
Corporate Services Clients: Key Applications
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International Holding Vehicles:
Efficient for multi-jurisdictional investment structures and subsidiaries.
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Real Estate & IP Holding:
Secure ownership and income routing for properties or IP rights.
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Client Structuring & Shelf Companies:
Ideal as holding structures and for forming managed entities under a licensed provider.
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Transaction Versatility:
Frequently used in M&A structures, financing vehicles, and multi-jurisdictional deals.
CPAs and Financial Advisors: Practical Guidance
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Accounting Requirements:
All S.A.s must maintain accounting records and supporting documents for at least 5 years, even if operating outside Panama.
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International Reporting:
CRS and FATCA rules may require clients to report beneficial ownership and foreign entity income in their country of residence.
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Tax Planning:
Panamanian S.A.s are subject to a territorial tax system. Foreign income (such as dividends or offshore investment returns) is tax-exempt locally.
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Financial Statements
Not required to file with Panamanian authorities unless operating domestically, but should be available for review by auditors or tax advisors abroad.
Annual Corporate Obligations
Confidentiality
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Shareholder names are not part of the public record.
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Directors' names are publicly recorded, but nominee services are available.
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Meetings (board/shareholder) may be held anywhere, including virtually.
Contact Us
For more information or to request incorporation services, please contact:
Important Advisory Notes
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Proper legal, tax, and accounting guidance is essential before incorporating an S.A.
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Panama is fully aligned with FATF, OECD, and other international transparency standards.
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Use of S.A. structures must comply with anti-money laundering and economic substance regulations, where applicable.
Asset Protection: Secure holding of real estate, portfolios, and vessels.
Confidentiality: No public shareholder registry.
Tax Neutrality: No tax on foreign income.
Simple Incorporation: Formed in 3–5 days.
Corporate Flexibility: Multi-purpose vehicle.
May be in any language; must include S.A., Inc., Corp., or Corporation.
USD 300 per year (due on incorporation anniversary or fiscal calendar).