Panamanian Private Interest Foundation (PPIF)

Panamanian Foundations are much less expensive than their European competitors. As long as  contributions and the income from these come from outside Panama’s fiscal territory a PPIF pays no taxes, assessments, levies, rates or fees of any kind or denomination, apart from a fixed annual tax of USD250 in the year of its incorporation and USD300 in subsequent years.

In addition, any investment in titles and bank deposits, even if made within the Panamanian fiscal territory, shall not pay any taxes.

Benefits

  • A high level of confidentiality; the foundation council, registered agent and any other person with information relating to the activities, transactions or operations of the foundation are required to keep this strictly secret
  • Anonymity for the founder and beneficiaries their beneficiaries and the founder
  • No requirement to file tax returns or financial statements
  • Books and accounting records may be held in Panama or abroad
  • The management and operation of the Foundation is not subject to the supervision of any government authority

Uses of a foundation

PPIFs have numerous potential uses for both personal and business purposes. These include:

  • As an alternative to wills and marriage contracts or pre-nuptial agreements
  • To protect the vulnerable 
  • To carry out scientific, humanitarian, philanthropic, religious or charitable activities or to manage funds reserved for these activities
  • To provide administration and maintenance of pension funds
  • Asset protection
  • Protection for, and granting of, periodical allocations, goods or other benefits to beneficiaries
  • To ensure business succession
  • As a receiving entity for commissions and/ or interest payments
  • As a holding company
  • As the owner of real estate, valuable goods, inventions