Protecting one’s assets is as important as it is difficult. The matter becomes even more complex when we talk about international assets and a combination of them. No matter how well you have structured your business, accounts, and investments across jurisdictions, it’s not enough if you haven’t set up the right protection scheme. This is where Panama offshore foundations become useful.

The ultimate asset protection structures are the trust and the foundation, as long as you find the right jurisdiction and experts to set them up. 

Benefits of a Panama foundation

With a Panamanian foundation, high-net-worth individuals can enjoy the same asset protection level as in Liechtenstein but at much lower costs. Here are some of the benefits of a Panama foundation:

Protect your assets from claims and confiscation

The foundation works under the same principle of a trust: its power lies in the capability of the settlor to give up ownership of the assets. Hence, nobody can take away what you don’t own. The only difference is that the settlor is called a ‘founder’, and the foundation is a legal entity rather than an agreement. 

This principle comes from the crusades and it has helped rich families keep their fortunes intact for generations. Since you are not the legal owner of the assets (real estate, investments, cash, etc.) they can’t be confiscated in a trial. 

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Effective estate planning

A common issue among rich families is inheritance. Besides the endless legal procedures and the fact that most countries put a tax on it, inheritance is a hassle. Moreover, some rules apply that automatically pass the assets onto certain family members (usually the spouse and the children). Nonetheless, a foundation in Panama can help you organize your estate exactly the way you want. Founders can choose their beneficiaries and how and when the assets will be distributed.

Reduce taxes

When properly established, Panama offshore foundations help you save on taxes. Here applies the same principle as with point one: you are not subject to pay taxes on assets you don’t own. However, when the distribution is done, beneficiaries may be taxable depending on their tax residency jurisdiction.

This is why Mundo highly recommends organizing your affairs in such a way that you have legal tax residency in a territorial tax country like Panama. Such an approach will work only if you comply with the tax resident requirements and hold your assets in a different jurisdiction.

Since Panama is a territorial taxation country, the foreign assets held under your foundation won’t be taxable here

Activities of a Panamanian foundation 

Unlike a company, the foundation can’t perform commercial activities, it can, however, hold real estate and other assets while receiving dividends. These include bonds, brokerage accounts, cash, works of art, etc. There is an exception when it comes to commercial activities: these can be carried out only if the profit will be used to finance the purpose of the foundation. 

Foundation in Panama: Prices

Basic package*: $2,460

Standard package**:$3,310

Renewal: $1,760

*It includes only the registration

**It includes apostilles and nominee directors if applies

Requirements 

1. Certified copies of the passports of beneficiaries.

2. Certified copy of a utility bill from beneficiaries.

3. Proof of funds which can be:

a. Latest income tax returns.

b. Financial reports by a certified accountant

c. Bank references where account balances are stated.

4. Professional reference by a lawyer or accountant.

5. Bank reference

6. Curriculum Vitae

7. Fill out the attached forms.

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Establish a Panamanian foundation with Mundo

Mundo has been created by NTL Wealth, which is our parent company. Thus, we belong to the same group (NTL group) and support each other when it comes to providing the best financial services. 

While NTL Wealth is a reputable fiduciary company founded in 1994, Mundo is its window to the world. We promote services from NTL and other experts in four different languages through our modern online portal.

We have offices in many different places but we are especially proud of our office in Panama. Thanks to their long-rooted relationship with this nation, our lawyers, advisers, and experts can provide top-notch corporate services. Get in touch now and order your Panama foundation.