Panama Private Foundations (PIF)
A Panama Private Interest Foundation (PIF) is a type of legal entity that is established to protect and administer assets in the interest of a beneficiary. In Panama, these entities are regulated by Law 25 of June 12, 1995, and by the foundation charter. Unlike corporations or trusts, the private foundation does not have shareholders or partners, nor does it offer any benefits or profits. Instead, a person, known as the Founder, transfers or donates goods and assets to the Foundation, which then becomes a juridical person subject to rights and duties.
In this article, we will explore Panama Private Foundations (PIF) in more detail, discussing how they work, their advantages, and how to establish one. We will also introduce Delvalle&Delvalle Panama Law Firm, a leading provider of legal services in Panama and a trusted advisor on PIFs.
Advantages of Panama Private Foundations (PIF)
There are many advantages to establishing a Private Interest Foundation in Panama. Here are some of the most notable:
- Asset Protection: One of the primary advantages of a PIF is that it offers excellent asset protection. The assets that are transferred to the Foundation are legally separate from the assets of the Founder, which means that they are protected from creditors or legal actions against the Founder.
- Tax Efficiency: Another advantage of PIFs is their tax efficiency. In Panama, there are no taxes on income earned outside of the country, meaning a PIF can be an excellent way to protect and manage assets while minimizing tax liability.
- Confidentiality: PIFs in Panama offer a high degree of confidentiality. The Foundation regulation is not public, meaning the beneficiary’s identity can remain anonymous.
- Flexibility: PIFs are highly flexible legal entities. They can be established for various purposes, such as estate planning or asset protection. Additionally, the Founder can set up the Foundation to operate in a specific way that meets their unique needs.
- Succession Planning: Finally, PIFs are an excellent tool for succession planning. The Founder can establish the Foundation to continue after their death, ensuring their assets are protected and managed according to their wishes.
How to Establish a Panama Private Foundation (PIF)
Establishing a PIF in Panama is a relatively straightforward process. Here are the steps involved:
- Choose a name for the Foundation: The name should be unique and not already in use by another legal entity. It must have the name “ foundation” as part of the name
- Draft the Foundation charter: The charter is a legal document that outlines the purpose of the Foundation, the rights and duties of the beneficiaries, and the rules for managing the Foundation’s assets.
- Appoint a Founder: The Founder is the person who establishes the Foundation by transferring or donating assets to it. It is appointed in the foundation chart which is a public document.
- Appoint a Council: The Council is responsible for managing the Foundation’s assets and carrying out its purposes. The Council must have at least three members. The council is appointed in the foundation chart, which is a public document.
- Register the Foundation: The Foundation must be registered with the Public Registry in Panama.
- Issued of the Foundation Regulation: The foundation regulation is a private document on which the main and second beneficiary is appointed. Also the protection is appointed in this document.
- Open a bank account: Once the Foundation is registered, it can open a bank account to manage its assets. It is not mandatory to open a bank account for the foundation to hold assets or operate.
Why Choose Delvalle&Delvalle Panama Law Firm?
Delvalle&Delvalle Panama Law Firm is a leading provider of legal services in Panama, specializing in corporate law, banking law, and international business transactions. The firm has extensive experience in establishing and managing Private Interest Foundations in Panama and can provide expert advice on the benefits and risks of establishing a PIF.
Here are some reasons why you should choose Delvalle&Delvalle:
- Experience: Delvalle&Delvalle has been providing legal services in Panama for over 17 years. During this time, the firm has developed a deep understanding of the legal and regulatory landscape in Panama and has built a reputation as a trusted advisor to both domestic and international clients.
- Expertise: The firm’s attorneys are highly skilled and experienced in corporate law, banking law, and international business transactions. They have a deep understanding of the legal and regulatory requirements for establishing and managing Private Interest Foundations in Panama.
- Personalized Service: Delvalle&Delvalle is committed to providing personalized service to its clients. The firm takes the time to understand each client’s unique needs and goals and develops customized solutions that meet those needs.
- Commitment to Excellence: Delvalle&Delvalle is committed to excellence in all aspects of its work. The firm is dedicated to providing the highest quality legal services to its clients and is constantly striving to improve its processes and procedures.
- Multilingual Team: The firm’s attorneys are fluent in Spanish and English, allowing them to communicate with clients from around the world effectively.
Panama Private Foundations (PIF) are an excellent tool for asset protection, tax efficiency, and succession planning. They offer high flexibility and confidentiality, making them an attractive option for many individuals and businesses. Establishing a PIF in Panama is a relatively straightforward process, but it is essential to work with a trusted legal advisor to ensure compliance with all legal and regulatory requirements.
Delvalle&Delvalle Panama Law Firm is a leading provider of legal services in Panama and a trusted advisor on PIFs. The firm’s extensive experience and expertise in corporate law, banking law, and international business transactions make it an ideal partner for anyone looking to establish a Private Interest Foundation in Panama.