The Panama private foundation as an asset protection solution

The Panama Foundation is a type of private foundation specifically designed as an asset protection tool. It was introduced by the Panamanian government (through the Private Interest Foundation Law) in 1995 and is based on the principles of the Swiss, Luxembourgish and Liechtenstein family foundations. The most obvious benefit of the Panamanian Private Foundation is that it is a separate legal entity, independently able to exercise its rights, enter into contracts, acquire property, etc.

On the other hand, the difference between an offshore limited liability company and a private foundation is that the latter does not engage in commercial activity and cannot be used for commercial purposes. It is also not to be confused with a corporation, which has owners and members. However, a Panamanian private foundation can engage in investment activities: real estate, stocks, bonds, patents, equity, shares, etc.