Foundations enjoy certain legal advantages that make them attractive for extraterritorial use.
Created by law N ° 25 of June 12, 1995, this legal figure, is very attractive because of the advantages that offer for the extraterritorial use (offshore).
Panama currently has a solid and stable democracy.
Protection of defenseless persons. One of the most common uses of a Private Interest Foundation is the protection of persons such as minors, incapacitated or unskilled persons to manage their own property or exposed to the danger of losing their property.
In those cases where family businesses pass to the second and third generations, there is a risk that they will be fragmented into the hands of third parties, outside the family. For this, the Private Interest Foundation serves for the preservation and continuity of family businesses.
To administer the individual payment of sums of money, or the individual distribution of goods, to members of one or more families for their subsistence; Education, clothing or other living expenses, or as a mechanism to involve the children and / or grandparents. For this type of purpose the Foundation of Private Interest is denominated in Europe "Family Foundation".
To carry out activities for scientific, humanitarian, philanthropic, religious or charitable purposes, or to administer funds for these activities.
For a combination of the two purposes above, that is, for the benefit of the family and other persons or institutions. For this type of multiple purposes, the Private Interest Foundation is often called in Europe "Joint Foundation".
VACCARO & VACCARO Standard Founding Act creates this type of Foundation.
Given that the Panamanian Private Interest Foundation does not have to be exclusively limited to the family benefit, it is typically used to distribute goods or profits to other individuals (friends or loved ones) designated as beneficiaries of the foundation, either from The time of its creation, in a later period designated by the client, or in the event of the dissolution of the Foundation.