Panama Offshore Foundation
When deciding to set up an offshore foundation it is crucial that you select a jurisdiction that meets your personal and financial criteria. This can be a difficult decision to make as there are a number of jurisdictions that offer various benefits. Selecting Panama for the formation of your offshore foundation can be advantageous for a number of reasons, as outlined below.
To find out how DeltaQuest can assist you with opening a Panama offshore foundation, please view our Panama Foundation services page.
How to form a Panama Offshore Foundation
A foundation is structured much like a trust but with a corporate element. It assumes a legal position that can sue or be sued. There are a select number of jurisdictions that offer offshore foundation services and it is therefore of great importance that you select the jurisdiction that meets your particular needs.
The foundation law of Panama, the Panama Foundation Law 25 of 1995, is extremely advanced and enables a Panama foundation to hold, protect and distribute assets or income in accordance with the individual or company that established it (the founder). Panama foundations offer excellent estate planning and asset protection advantages. They are a flexible approach to achieving the above goals, and also allow for advanced tax planning opportunities.
There are a number of reasons why individuals and companies choose to set up an offshore foundation in Panama. A Panama offshore foundation provides for the effective protection of assets once they have been transferred from the founder’s name. Panama offers complete exemption from a variety of taxes, including inheritance tax and income tax. A Panama foundation also offers high levels of anonymity and privacy, for both the founder and the beneficiaries involved.
In order to set up a Panama foundation, it is important to have the following four parties: the founder, the Council Members, the protector and the beneficiaries. The founder is responsible for the initial formation of the foundation. The Council Members are responsible for managing and administering the foundation in full compliance with the founder’s wishes. The protector’s role is to ensure that the Council Members are administering the foundation in line with the founder’s wishes. The beneficiaries are those that ultimately benefit from the foundation.
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