One of the world’s best means of asset protection is a Panama private interest foundation. A Panama private interest foundation is an effective holding entity for assets. What follows is an overview of how such an entity works and how to set one up. As with all legal matters consult a competent authority to set up and maintain a Panama Foundation. Deal with or through someone who speaks your language. Make sure that you understand every step you take and why you are taking it. That having been said let’s start with what it will cost.
Cost of a Panama Private Interest Foundation
These are typical costs. Part of this is payment to the government and part is to the attorney. If prices you are quoted seem to high don’t be afraid to comparison shop. By all means make sure that you are comfortable with whom you deal with from the outset as these entities are meant to last for a very long time. micropile installation
What a Panama Private Interest Foundation Is Used For
Use a Panama foundation as a holding entity for asset protection and privacy. Overseas assets of a Panama foundation are not taxed in Panama. The only taxation related to a Panama foundation would be if the foundation owned a business operating in Panama. In that case the business would be taxed, not the foundation. The foundation could receive post-tax dollars from the business. Consider joining a foundation with an offshore corporation, in Panama or elsewhere, for increased asset protection.
A Panama foundation can own assets anywhere in the world. This includes bank accounts, patents, real estate, companies, personal assets such as airplanes, cars, etc., royalty rights, stocks and bonds, and collectibles such as coins and stamps as a partial list.
An example of the asset protection of a Panama private interest foundation is that there is a three year statute of limitations on “fraudulent conveyance.” That is after three years no on can successfully challenge you in a Panamanian court for transferring assets to the foundation. Thus a Panama foundation will provide long term asset protection free from challenge of foreign jurisdictions after the initial three year period.
The Foundation’s assets can only be frozen if the foundation itself is accused of doing something illegal it its own business dealings. Standard advice for a Panama foundation is to use the foundation as a holding company. If a company owned by the foundation has to deal with legal issues they do not spill over into other foundation business.
Attorneys in Panama often suggest a Panama private interest foundation as a means of protecting you again a foreign attack on your assets as well as any possibility that Panama might ever change its laws regarding foreign ownership.