Panama
Panamanian private foundation for asset protection and succession.
Key Benefits
When assets are transferred into a Panama Private Interest Foundation, they cease to be the personal property of the founder. The foundation acts as a self-owning legal entity, creating an impenetrable wall between your personal liabilities and your global wealth.
Panama’s Law 25 establishes an aggressive three-year statute of limitations on creditor challenges. Once assets have been securely held by the foundation for three years, they become entirely insulated from foreign court orders, lawsuits, and external claims.
A Panama Foundation allows you to entirely bypass the time-consuming and public probate process. Wealth is distributed seamlessly to your chosen beneficiaries according to your private instructions, completely overriding foreign forced-heirship laws that might otherwise dictate how your estate is split.
Rooted in Panama’s strict territorial tax system, a Private Interest Foundation enjoys complete tax neutrality. All foreign-sourced income, global investment yields, international real estate gains, and asset distributions to non-resident beneficiaries are subject to a 0% local tax rate.
Tax Overview
Corporate Income Tax
Territorial system: Panama-source income is generally taxable; foreign-source is generally exempt.
Capital Gains Tax
Local-source gains may be taxable; foreign-source gains are typically outside scope under the territorial framework.
VAT (ITBMS)
Indirect tax on goods and services supplied in Panama (reduced/other rates may apply for specific categories).
Formation Process
We complete due diligence and confirm name availability with the local agent.
We prepare incorporation documents and internal resolutions for signature.
We file the Foundation with the Public Registry via the resident agent.
Registry review and issuance of the company's incorporation documents.
Pricing
Formation Package
$1,440
Annual Maintenance
$2,250/year
Add-ons
Learn More
The Foundation (Panama) is a civil-law style entity with separate legal personality and no shareholders, ideal for asset protection, estate planning and long-term governance. It can hold bankable assets, real estate, shares or tokens and is frequently used as a control layer above operating companies. Panama does not tax foreign-source income, and foundation regulations allow for confidential beneficiary arrangements, making it popular with families, entrepreneurs and protocol teams.
Formation of a Foundation (Panama) in Panama typically takes 7-14 business days once KYC documents have been submitted and verified.
The formation package starts at $1,440. Annual maintenance is $2,250/year. All-inclusive — no hidden fees.
Panama applies the following taxes to this entity type: Corporate Income Tax: 0% (foreign-sourced) (Territorial system: Panama-source income is generally taxable; foreign-source is generally exempt.). Capital Gains Tax: Varies (Local-source gains may be taxable; foreign-source gains are typically outside scope under the territorial framework.). VAT (ITBMS): 7% (Indirect tax on goods and services supplied in Panama (reduced/other rates may apply for specific categories).).
The package includes: Incorporation / registration fees and related expenses, Execution of the Foundation Charter.
Form your Foundation (Panama) in Panama and have your entity ready in 7-14 business days.
Entity Engine is a private facilitation platform, not a government agency or law firm. Information is general only (not legal/tax advice). Filings are completed by regulated third-party partners. Terms.