Panama
Private-interest foundations for succession and gold custody.
Panama is the reference civil-law jurisdiction for private-interest foundations and territorial-tax trading companies. The Panama Private Interest Foundation (Ley 25 of 1995) is designed as a succession and asset-protection wrapper without beneficiaries — the foundation council administers assets per the founder's charter.
Panama's territorial tax system exempts foreign-source income entirely, making it useful for international trading companies and for gold and asset custody structures.
Where Panama fits
- Foundations
- Trading cos
- Gold custody
Banking landscape
Panama banking is competent but selective post-Panama Papers. Structures with clean CDD and documented source of funds bank; opaque or lightly-documented structures do not. Increasingly, Panama-owned assets bank in Switzerland, the UAE or Singapore.
Tax & reporting
0% on foreign-source income for Panama companies. 25% on Panama-source income. No capital gains tax on foreign assets. Foundations pay no tax on their assets.
Substance & register visibility
Panama has implemented economic-substance requirements for regulated and financial-service activities. Holding foundations and personal-wealth structures face lighter tests than active financial-service entities.
When to pick this jurisdiction
Pick Panama for a private-interest foundation as a civil-law succession wrapper, for gold-custody ownership, or for genuinely-territorial international trading companies. Combine with strong banking jurisdictions elsewhere.
Written up as a comparative shortlist.
Every Panama recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.
Considering Panama? Get a written comparison first.
Answer six questions and a director will come back with a shortlist, indicative costs and banking route.
Questions we hear on every Panama intake.
- Does a Panama foundation have beneficiaries?
- It has a founder and a council but no beneficiaries in the trust sense. Distribution rules are set out in the foundation charter and private regulations.
- Is Panama on the FATF grey list?
- Panama was removed from the FATF grey list in October 2023 after implementing enhanced AML and beneficial-ownership frameworks.
- Can a Panama foundation hold cryptocurrency?
- Yes. Panama foundations can hold any legally-recognised asset class, including cryptocurrency and digital-asset holdings held through licensed custodians.
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Every engagement begins with a twenty-minute director-led call. Fixed fees, in writing, before any work begins.