Blog and news

News

Benefits of a Panamanian Trust for Family Office Asset Protection

calendar 9/28/2021 8:00:00 AM
author Admin System

Panama is one of the best countries to invest in the Western Hemisphere. This small nation has had spectacular economic growth in recent years thanks to its friendly business climate and sound investment opportunities.

Panama is one of the preferred destinations for businessmen, as it has become in recent years one of the main financial hubs in the Americas, a country where dozens of banks have established their headquarters for the rest of the continent.

Also, Panama has a robust legal system and a territorial tax system, meaning only income made in Panama will be subject to taxes. Income or gains coming from abroad will be free of taxes.

These are some of the reasons that make Panama one of our favorite jurisdictions in Mundo Expert to establish a trust for Family Offices. This country offers solid legal structures that will protect your assets from lawsuits and creditors seeking to undermine your patrimony.

In a nutshell, some of the perks for Panamanian Trusts are:

-A solid legal protection

-A worldwide wealth protection

-Tax exemptions for trusts doing business outside Panama

-A legal framework that aims to keep confidentiality of investors.

-Full financial freedom

-Documentation can be provided in English

In this article we will tell you some of the benefits for establishing a trust in Panama.

Trusts: the Ultimate Tool for Asset Protection

One of the pillars of wealth management is to organize and protect the assets that compose the patrimony, using legal tools such as trusts. 

A trust can be created in a handful of jurisdictions, such as the United States, Saint Kitts and Nevis, the British Virgin Islands, Liechtenstein and Panama.

Any type of assets can be transferred to a trust. For example: money, real estate, crypto. The patrimony, which is transferred to the trust for management, is completely separate from the patrimony of the trust entity. Trusts in Panama are regulated by the Panamanian Superintendence of Banks.

Setting up a trust grants the beneficiary the following:

-A robust asset protection

-Transparency, as the trustee is under full supervision and accountable to the settlor. Besides, the trustee is regulated like a bank by the banking authority

-Confidentiality: the beneficiary’s name is not disclosed in any register

-Flexibility, as you can add or remove any asset from the trust now or in the future.

Even though it looks complicated, this is a really useful and flexible

legal tool widely used for wealth management. We will tell you some of the things that can be used 

-Protecting a patrimony

-Planning succession

-To manage asset inherited by some designed heirs

-To attend special issues such as treatment for elderly, funds for disabled people and educational obligations for underaged and young adults

-Manage assets for a desired purpose and do certain commercial activities

-Guarantee the payment of obligations now or in the future

A trust presents limitless opportunities to families all around the world, as it allows them to plan their future and protect their patrimony.

Why Panama?

Panama is a democratic country located in Central America. It is home of the Panama Canal, the point where most of 5% of global trade passes by. 

Panama has had a stable economy and political system since the return of democracy in 1989. Also, this country has strong ties with the United States, as its official currency is the U.S. dollar, which allows them to have a very low inflation rate, something uncommon in Latin America, a region which has been whipped by high inflation and poverty in the last decades.

Panama is one of the best destinations to live, invest and retire in Latin America thanks to its unique geographical and economic conditions.

Regarding taxes, Panama offers one of the lowest tax rates in the region, as well as a strict bank secrecy, making it the ideal place for offshore services. 

That’s why more than a half a million Foundation and Corporations are set up in Panama. 

Ask for more information


Benefits of Setting up a Trust in Panama 

Panama is a beautiful country that offers limitless business opportunities to foreign investors. Furthermore, this Central American country is one of the best options in the continent to establish a trust. Below, we will explain you some of the advantages that Panama has to offer to Family Office seeking to protect their assets under a Panamanian trust:

-Foreign-based: A foreigner can create a trust in Panama even if he or she has the assets abroad and are not domiciled in the country.

-Privacy: A Panamanian trust will grant you nearly 100% privacy, as it won’t be registered in a Government agency or such. 

-Tax: Panama has a territorial tax regime, meaning that any income or gains created overseas won’t pay taxes in Panama. Also, there is no tax applicable in Panama for trusts. However, you should note that there are some requirements for income disclosement for taxpayers from certain countries.

-Asset protection: A Panamanian Trust offers robust legal protection against possible lawsuits and creditors seeking to seize your assets.

-Estate planning: Preparing for the future is a common use for a trust. You can set up a trust in Panama with a no-expiry date. 

-Easy formation: opening a trust in Panama is a process that can take a few days to complete with the proper advice.

-English: even though Panama is a Spanish-speaking country, the required documentation can be provided in English. This is specially useful for American investors.

Setting up a trust in Panama is one of the best decisions you can make to protect your assets and ensure your future. The procedure is easy and can take up to a few days to complete.

Some of the assets that can be included in your Panamanian trust are:

-Bonds and Stock shares

-Real estate properties

-Bank accounts

-Intellectual properties

-Investment portfolios.

-Cryptocurrencies.

-Cars

From bonds to cryptocurrencies, a really varied set of assets can be held in a Panamanian Trust, making it the best way to safeguard your patrimony while maximizing benefits.

Foundations vs Trusts vs Wills

Both foundations, trusts and wills are legal figures that are often used for wealth management. However, there are some remarkable differences we will explain you in the chart below:

Description

Foundation

Trust

Will

Privacy

Yes

Yes

No

Quickness

Yes

Yes

Yes

Security

Yes

Yes

No

A regulated intermediary

On request

Yes

No

Asset protection

Yes

Yes

No

No taxes

Yes

Yes

No

Real estate planning

Yes

Yes

Yes

Commercial Activity

No

Yes

No

Legal process

No

Yes

Yes

Immediate access to the assets

Yes

Yes

No


As you may note, the Panamanian Trust serves as the best tool to protect your assets, grant succession and plan your future.

About our Partners

In Mundo, one of our partners in the field is a Panamanian-based consulting firm composed by some of the best experts in the market. They offer the following type of services:

-Trust Services

-Legal Services

-Financial Group

-Corporate Services

-Real Estate Services.

From setting up a trust to acquiring a real estate property, our partners can help you by providing the best advice on how to invest in Panama. Their world-class consultants will ensure you to invest and thrive safely in this Central American nation.

What can we do for you?

In Mundo Expert, our main task is to offer our clients the opportunity to achieve financial freedom. 

A solid asset protection is a key issue in the pursuit of financial freedom. Our team of experts can help you secure your patrimony and prepare for the future by setting up a trust in Panama.

As we told you above, this small country is one of the best destinations for setting up a trust in the Americas, especially for Family Offices. Panama has sound business opportunities, as well as a legal framework that offers a solid protection against any third party seeking to undermine your assets.

If you are seeking to establish a Panamanian Trust and protect your patrimony, contact us now.

Contact us


All Countries
arrow
All Tags
arrow
CONFERENCE

MARCH 3, 2022  15:00 GMT
How to create
a Family Office
in 5 easy steps
A conference on how to establish your own family office by some of the world's top experts including financial products and invetments, second passports, trust and family office companies, usually only accessible to family office advisers.
This conference gives you detailed insider knowledge that will cost you a fortune in consultancy fees.