Foundation Purposes

1) Serving as beneficiary when opening and operating financial accounts. Today, due to the global scare of terrorism, most offshore tax haven jurisdictions have implemented laws that require the banks to obtain "declarations of beneficial ownership" when establishing corporate bank accounts.

In Panama, like in most offshore jurisdictions, the banks are required to maintain this information under strict confidentiality under the bank secrecy laws that are strictly enforced. However, if you do not wish to sign the declaration as the beneficial owner when establishing your corporate account, the foundation can serve as the beneficial owner for the purposes of declaration, and then it will be signed by the nominee foundation council.

2) Serving as a holding entity for the Corporation: using the foundation, you can avoid the use of bearer shares, or shares issued to your personal name. The foundation can be named as the shareholder on the share certificates of your corporation.

You can control the foundation anonymously through a Private Protectorate role. As the Protector, you can appoint the beneficiaries through a private Letter of Wishes, or a more formal set of foundation By-Laws. Since both the Protector and the Beneficiaries are both appointed through non-public (private) documents, they remain 100% anonymous and confidential.

3) Serving as a tool to facilitate the transference of funds offshore, and the repatriation of those funds back offshore. Since the foundation is a charitable entity, it may receive and give donations and grants to and from anybody he wishes. So, you can donate your funds to the foundation. In its turn, the foundation can provide educational grants, charitable donations, etc. to anyone you wish to choose.

4) Serving as a testamentary vehicle to distribute your assets to your heirs. Under Panamanian laws, no one may freeze the Foundation's assets under any circumstances – providing the ultimate asset protection vehicle.

The Panama Private Interest Foundation is specifically designed to  protect, and distribute the assets to your beneficiaries in case of some event or disaster. Your Foundation's Letter of Wishes, written by the Protector, will serve as its "living will", containing the foundations assets, list of beneficiaries, and how and when those assets are to be distributed to the beneficiaries.

Since the inheritance is coming from outside of the beneficiary's domestic country, the inherited assets are not subject to any of the standard taxes and legal procedures. Through the foundation, your heirs will receive their inheritance free of probate, gift taxes, estate taxes, inheritance taxes, or legal delays.

Please do not hesitate to contact us if you need further information and complete details on establishing an offshore Trust or Foundation.

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The IMF has reported that Panama was one of the fastest growing economies in the world last year.
Cable & Wireless has announced that its principal operations in the Channel Islands, the Caribbean, Panama, Macau, and Monaco are expected to invest more than USD 400 million in Caribbean telecommunications development.
The IMF concluded the 7th Annual Regional Conference on Central America, Panama and Dominican Republic and examined how globalization and economic integration is impacting Central America's tax structures.
The President of Mexico Felipe Calderon has initiated talks with Panama regarding a free trade agreement that has been awaited for a long time.
Panama's long-term sovereign credit rating has been raised by Standard and Poor's to BB+ from BB. This new rating is based on strong economic growth of Panama and continued improvement in fiscal health of its government.
Recently, a new law was passed by Panama's National Assembly to give multinational companies that perform certain tasks a significant tax break. As a result, according to a company specialising in investment property in Panama, the country's real estate sector is expected to experience an unprecedented boost.
The WTO has announced completing a Trade Policy Review of Panama and published the results of the review. The report suggested that the rationalization of assistance programmes and the simplification of the trade regime would help Panama to sustain the economic growth.
Economic growth in Panama is expected to exceed last year's 8.1% because of a strong investment climate, a dynamic services sector and the Panama Canal expansion programme.
The Trade Promotion Agreement has been signed by Panama and the United States to eliminate tariffs and other barriers to the trade in goods and services between Panama and the US.
The Panama Canal Authority (ACP) held a public hearing in Balboa, Panama, with the participation of fourteen representatives from shipping and government.
Panama banks Banco General and Banco Continental have come to the agreement to merge. This merger will create one of the largest financial services companies in the region. The merger is expected to close during 2007.
Panama hopes to become Argentina's replacement on the UN Security Council after Latin American and Caribbean Group (GRULAC) of the UN Security Council delayed as far as some English-speaking Caribbean members were reportedly upset about not being adequately involved in this process.
At a meeting of Panama's President and Executive President of the Central American Bank for Economic Integration (CABEI) agreed that by the end of 2006 Panama will become an 'extra-regional' partner of CABEI. This status will provide Panama with the access of funding of about USD 60 million.
Chile and Panama signed the free trade agreement that opens up 92.5% of the Chilean economy to Panamanian producers. Now most Panamanian products will enjoy a zero tariff when entering Chile's market.