Panama private foundation
Open pricing. The final quote is fixed in writing before work starts.
A Panama private foundation is one of the best-known succession planning tools: the founder endows the foundation with assets, which then sit outside their personal estate and are distributed under rules the founder writes into the foundation documents. It is used to pass capital to heirs, hold company shares and consolidate family assets.
We discuss your goals, design the foundation and its bodies, prepare the documents, handle registration through Panamanian agents and take care of ongoing maintenance - local fees, agent support, amendments to the documents. We also walk through the tax side in your country of residence: a Panamanian foundation does not cancel the obligations of the founder or beneficiaries where they actually live.
What the private foundations law requires
Private foundations in Panama are governed by Law 25 of 12 June 1995. The initial endowment is from $10,000. The foundation council can be at least three individuals or one legal entity. A foundation may not pursue profit: it may trade only incidentally, but it can own company shares, property and accounts. Hence the common structure: the foundation owns a Panamanian corporation, and the corporation runs the business.
We will calculate online the cost of setting up the structure and running it for a year.
How to set up a foundation in Panama: the steps
| Step | What happens | Timeline |
|---|---|---|
| 1. Structure | the foundation's purpose, beneficiaries, council, an optional protector, distribution rules | 3-7 days |
| 2. Agent checks | a local lawyer-agent vets the founder, council and source of assets | 3-10 days |
| 3. Charter and regulations | the charter goes on the register, the regulations naming beneficiaries stay private | 2-3 days |
| 4. Registration | notarial deed and Public Registry entry, first annual fee | 1-2 weeks |
| 5. After registration | tax number, beneficial owner details filed via the agent, transfer of assets | 1-4 weeks |
Taxes and annual payments
- The annual fee for a private foundation is $400, plus the agent's services.
- Panama taxes only income earned in its territory: the foundation's foreign income is not taxed.
- Panama has no inheritance, gift or wealth tax.
- The foundation keeps accounting records and holds copies with the agent.
There is a flip side: Panama remains on the EU list of non-cooperative tax jurisdictions, so European banks and tax authorities look at Panamanian structures more strictly. From 2027 Panamanian companies in international groups can avoid tax on foreign dividends, interest and royalties only with real presence in the country.
Why setting up a foundation gets delayed
- The agent cannot confirm the source of the assets being transferred.
- Beneficiaries or the founder are linked to sanctioned countries.
- A bank will not open an account for the foundation without a clear purpose and council documents.
- Assets in the founder's country cannot be transferred without tax consequences that were not worked out in advance.
What we do
- Foundation registration and maintenance
FAQ
Why are Panama foundations so popular?
Who manages the foundation's assets?
Does a Panama foundation eliminate taxes?
How much money do you need to set up a foundation in Panama?
Who can sit on a Panamanian foundation council?
Can a Panamanian foundation run a business?
Are a Panamanian foundation's beneficiaries disclosed?
Can the founder be a beneficiary of a Panamanian foundation?
How long does setting up a foundation in Panama take?
Does the foundation need a Panamanian bank account?
Would a Panama private interest foundation suit your assets?
We check whether a Panama foundation fits your assets and heirs and prepare the charter, regulations and registration documents. The catalogue covers trusts and foundations worldwide.
The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.
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