Panama private interest foundation
The private interest foundation, created by Law 25 of 1995, lets you set aside assets for the purposes you define: protecting your family, organizing your estate or supporting a cause. We help you set it up remotely, with clear guidance at every step.
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What a private interest foundation is for
The foundation receives assets from the founder and manages them according to the foundation charter and, if there is one, its regulations. Those assets are kept separate from the personal assets of the founder and of the beneficiaries.
It is often used for estate and succession planning, so that a family's assets are managed under clear rules, or for philanthropic purposes. It is not designed to carry out commercial activities on a regular basis; to run a business, a company is usually more suitable.
Main requirements
Law 25 of 1995 requires, among other elements:
- A foundation charter, registered at the Public Registry of Panama.
- A name that includes the word "Foundation" (Fundación) and cannot be confused with an existing registered foundation.
- Initial assets of at least US$10,000, which may be contributed in cash or in other assets.
- A foundation council made up of at least three individuals or one legal entity.
- A resident agent in Panama, who must be a lawyer or a law firm.
- The domicile, purposes, duration and the way beneficiaries are designated.
Founder, council, beneficiaries and protector
The founder creates the foundation and contributes the initial assets; it can be an individual or a legal entity, of any nationality. The foundation council manages the foundation. Beneficiaries can be named in the charter or in separate regulations, which are not filed at the Public Registry.
A protector is optional and may have supervisory powers defined in the charter or the regulations. We explain the options so you can choose the structure that best fits what you want to achieve.
How we set it up
Once we understand your goal, we send you a written quote with the requirements, documents and total cost. After your approval we draft the foundation charter, coordinate the foundation council and the signatures, and handle the registration at the Public Registry of Panama.
If documents are signed abroad, we tell you whether they need an apostille or legalization and a translation into Spanish by an authorized public translator. You receive the registered documents digitally or in person in Panama.
After registration
The foundation pays an annual government fee, must keep its resident agent and must comply with the records required by law. Your quote explains these obligations so you know what keeping the foundation in good standing involves.
Frequently asked questions
Can I be a founder if I do not live in Panama?
Yes. The founder can be an individual or a legal entity of any nationality, and does not need to live in Panama.
What are the minimum initial assets?
The law requires initial assets of at least US$10,000, which may be contributed in cash or in other assets.
Are beneficiaries publicly registered?
Beneficiaries can be named in separate regulations, which are not filed at the Public Registry. We explain how this works in your case.
Can a foundation run a business?
A private interest foundation is not designed to carry out commercial activities on a regular basis. If your goal is to run a business, a corporation or an LLC is usually the right choice.
General information. It does not replace advice for your specific case; requirements and official fees may change.