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Benefits of a Panamanian Trust for Family Office Asset Protection

9/28/2021 8:00:00 AM
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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 the best jurisdictions 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. 

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.



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:

















A regulated intermediary

On request



Asset protection




No taxes




Real estate planning




Commercial Activity




Legal process




Immediate access to the assets




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

What can we do for you?

In Mundo Expert, our main task is to offer our readers the best information that helps them achieve financial freedom. 

A solid asset protection is a key factor in the pursuit of financial freedom. 

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.

Disclaimer: The information contained in this article is for informational purposes only and does not constitute financial advice or recommendations. Investing in financial products or cryptocurrencies involves risks, and you should be aware of the potential risks involved before investing. The content on this website is not intended to be a solicitation or offer to buy or sell any financial products or services. The information provided does not take into account your specific investment objectives, financial situation, or needs, and should not be relied upon as a substitute for professional financial advice. You should seek independent advice from a financial advisor or other professionals before making any investment decisions. Please be aware that the legal status of cryptocurrencies and other financial products may vary in different jurisdictions and may be subject to regulation. It is your responsibility to ensure compliance with any relevant laws and regulations governing the sale and marketing of financial products and services in your jurisdiction.

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