Offshore foundation in Panama
Forming an offshore foundation in Panama guarantees its founder an extreme privacy when it comes to protecting his assets. The origin of offshore foundations of private interest arise in the Principality of Liechtenstein in 1926 and its main characteristics are:
- The offshore foundation may have or not an office in Panama.
- The foundations are registered in the Panama Trade Registry, which includes the information about the Board of Directors, the promoter and the first shareholder, but not the founders.
- The founder can maintain total anonymity of the beneficiaries, be the only beneficiary and avoid paying taxes to the founders or beneficiaries of the entity.
- Panamanian offshore foundation operates in a following way: the founder forms a foundation, for example in Panama, and transfers the assets or rights to its foundation that in its turn creates an international business company (IBC). The company (IBC) buys bearer shares in an investment fund that will pay the dividends annually to the IBC company whose owner is a foundation. In this way, the foundation will not have beneficiaries until the founder is absent.
- Offshore foundations registered in Panama are separate from its founders, administrators or beneficiaries.The foundations can own any property: bank accounts, real estate, investments, corporate shareholders, etc. Thanks to the bearer shares it is possible to obtain even more privacy and protection.
Panamanian offshore companies, created by foundations are not subject to any type of tax: income, capital gain, withholding tax, invention tax, interest tax, property sales tax, equity transfer, property tax, inheritance, inventory.
Advantages of creating an offshore foundation in Panama
- They are not subject to taxation.
- They are anonymous.
- There is no penetration of the corporate veil as long as it develops legal activities.
- Panamanian foundations do not require high social capital.
- Panamanian foundations can operate all over the world and open an account in any country in its name. Also they can own real estate, investments, corporations, trusts or any other assets.
- The maintenance of a Panamanian foundation is very economical.
- Panamanian foundations can be used for the following: purchase of shares of several companies, investment in funds, purchase of bonds, creation of non-profit non-governmental organizations and non-profit organizations for charity and health organizations.