private fundations

Panama Private Foundations (PIF)

What is a Panamanian Private Foundation (PIF)?

A Private Interest Foundation (PIF) is a legal entity wherein a person, denominated as Founder, transfers or donates goods and assets to a Foundation (which is a juridical person subject to rights and duties), the purpose being asset protection and administration in benefit of a beneficiary, who may be the founder of a third party.

Many compare foundations to corporations and trusts. Unlike these other legal entities, the private foundation does not have shareholders or partners, benefits, and an individual or a group in general. It does not require the transfer of goods to a third party. Still, the person may constitute his own private foundation.

In Panama, Private Interest Foundations (PIF) are regulated by Law 25 of June 12, 1995, and by the foundation charter.

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