Panama Private Interest Foundation, by Law, cannot be simply profit oriented or be used to carry on a particular business, however they can from time to time perform certain acts of commerce when such acts are convenient or advantageous to the Foundation and only if the proceeds of such acts are dedicated exclusively to the non-commercial purpose or objectives of the Foundation.

Areas to Operate PIF-Panama

The Foundations purposes must be orientated to contribute to the costs of upbringing, education, aid, as well as general maintenance or other similar endeavors of one or more members of one or several families as established in the Regulations.

The Foundation may also benefit other natural or juridical persons including institutions, of any kind and it may take the necessary provisions for the orderly disposition or succession of its patrimony.

In order to attain such objects the Foundation is authorized to preserve, administer, and invest in an appropriate manner the Foundation's assets. These assets may be of any kind, particularly of real estate and participations in other entities, and to conclude all businesses and legal transactions serving the pursuit and the realization of such objects.

Main Uses IBC-Panama

Asset Protection

PIF-Panama can be used on behalf an Asset Protection, frequently used to protect family related, personal or commercial Assets.

PIF-Panama can be the titleholder of assets all over the world, such as: bonus/stocks, values, shares from other companies, real estate, yachts, vessels, aircrafts, and more. These properties will have special protection because they are considered separate assets from the Founders or Beneficiaries property in Panama.

It will protect your assets against, potential litigants and any potential business failure, insolvency or bankruptcy.

Holding Company

A PIF-Panama can be used as a holding to own a majority or a group of other companies.

This type of use reduces risks and guarantees the control of those companies. It is very useful to organize a group of business assets. They offer financial and tax advantages, because all the dividends are distributed directly to the holding, therefore reducing the taxes that have to be paid from the shareholders.

International Business - Tax Planning

Panama goes by the tax principle of territoriality, therefore is great for tax planning. Under this system only incomes or profits generated within the geographic territory of Panama are subject to tax. Any profit obtained from activities outside of Panama, such as the dividends received from companies operating abroad, participation or interests in private or public companies; a vehicle for the collection of royalties, will be exonerated from Panamanian taxes.

Other Main Usages

• Charitable Purposes
• Investment and Banking
• Own intellectual & industrial property
• Owners of Commercial License And many more