COSTS AND TAXES

Costs of forming or annual maintenance of a Private Interest Foundation are also similar to Offshore Corporations except if Foundation Chart and Regulations are extensive or complex.

Private Interest Foundations operate tax free when its income is generated outside Panama.

All acts of constitution, modification, extinction, transference, transmission or burden of the assets of the Foundation and the rent originated on that goods are tax free whenever:
The Private Interest Foundation is built up on a Foundation Act that must be notarized and registered at the Public Registry of Panama and must contain, among other info the following:

1- Goods or assets are located outside Panama

2- Money deposited by natural or juridical persons or its income does not arise from Panamanian

sources or not taxable in Panama

3- Stocks or valuables of any kind are issued by corporations which income is not from a Panamanian

source or are not taxable, even when those stocks or valuables are deposited in Panama

4- All acts for the transference of real estate property, titles, certificates of deposit, valuables,

money, stocks, done for the fulfillment of the objectives of the Foundation.

The only taxable economic activities are those carried on within Panama, as long as the income arises from a Panamanian source.

For more information about the advantages of building up a Private Interest Foundation in Panama and the necessary requirements please go to our section CONTACT US

We´ll help you in the decision of patrimony and tax planning through this legal figure

• Private Interest Foundations in Panama

• Advantages of the Private Interest Foundations

• To create a Private Interest Foundation

• Costs & Taxes

COSTS AND TAXES