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Panama Foundations Generally, a Panama company owned by a Panama foundation, which owns a bank account is considered the ultimate asset protection strategy. It is stronger than the old swiss numbered bank accounts. Many people ask why they need a corporation and not just a foundation. It is true that a foundation can own a bank account BUT a foundation cannot enter into business activities. For this reason it is quite limited. Having the foundation own a corporation gives you the best of both worlds. It also adds layers to make piercing the corporate veil much more difficult, if not impossible. This gives you more time if something were to happen to move your assets. In Panama, only criminal activity, according to Panama law, will give a court reason to lift your bank secrecy protection. What is a Panama Foundation? – The Panama Private Interest Foundation is an asset protection tool par excellence. A foundation is a hybrid asset protection vehicle that encompasses some of the elements of a trust, a corporation and a will all wrapped up into one that is better than any one of them. What Can a Foundation Do? – It can own bank accounts, stock brokerage accounts, real estate anywhere in the world, art, gold, boats, airplanes, automobiles and it can own corporations. It is similar to a holding company but much more dynamic. What Can a Foundation Not Do? – A Panama Foundation may not directly engage in commercial activities. However the foundation can own a corporation from Panama or anywhere else and this corporation that it owns can operate commercially. Does a Panama Foundation Have a Tax Obligation in Panama? – If all the Panama Foundation income is derived outside of Panama there is no income tax due and no need to file a tax return in Panama. Panama has no capital gains tax on bank interest or stock market gains and no inheritance tax. Who owns a Panama Foundation? – Under Panama law a foundation cannot have an owner, thus ownership is impossible. This enables one to arrange for the Panama Foundation to own the shares of a Panama Bearer Share Corporation. A Panama Private Interest Foundation is a judicial or unnatural person like a corporation. A offshore trust is not a judicial person; it is merely a written agreement as to how assets are managed. It has its own assets and liabilities separate from those of the founder, protector or beneficiaries. Read more ... Foundations |
