Foundations (Law 25 of 1995), trusts (Law 1 of 1984) and holding companies — compared and combined for real, reportable, defensible protection of what you have built.
Panama offers a mature toolbox: the private interest foundation under Law 25 of 1995, the trust under Law 1 of 1984, and the corporation — each with distinct strengths, and most powerful in combination.
We analyze your assets, family map and home-country obligations before recommending anything. The wrong structure is worse than no structure — and a structure that cannot be reported cleanly at home is a liability, not protection.
Deep insight into Panama's tax authority processes.
Master in Public Administration — law, economics and policy.
You always deal directly with the attorney handling your case.
Licensed attorney in the Republic of Panama.
“Asset protection is not about hiding — it is about putting the right legal armor around what you have built, before it is ever challenged.”
— Lic. José Manuel Góndola Escudero · Panama Bar No. 17,005| Private Foundation | Panama Trust | Corporation (SA) | |
|---|---|---|---|
| Legal basis | Law 25 of 1995 | Law 1 of 1984 | Corporation law |
| Who owns it | Nobody — it owns itself | Trustee holds legal title | Shareholders |
| Best for | Succession, family governance, privacy | Financing structures, common-law familiarity, specific-purpose holdings | Operating businesses, simple holdings |
| Succession | Built-in — no probate | Per the trust deed | Shares pass through estate |
| Management | Foundation council (+ protector) | Licensed trustee | Directors and officers |
| Privacy | Beneficiaries in private regulations | Deed not public | Directors public, shareholders private |
The classic architecture for complex estates combines them: operating companies under a holding, owned by a foundation whose private regulations govern the family's succession. See the full foundation guide.
Foundation, trust, corporation or combination — matched to your real objectives.
Charters, deeds, regulations and resolutions drafted and registered.
Real estate, shares and accounts moved into the structure correctly.
Councils, protectors and succession events designed to actually work.
CRS/FATCA-aware design with your tax advisors abroad.
Law 526 review, resident agent and annual upkeep.
What you own, where, and what threatens it — before any structure talk.
Foundation vs. trust vs. combination, with home-country reporting in view.
Documents registered and assets transferred in, properly.
Governance, changes and succession events over time.
Three main instruments: the private interest foundation (Law 25 of 1995), the Panama trust or fideicomiso (Law 1 of 1984) and the corporation, often combined — a holding company owned by a foundation is the classic architecture for complex estates.
The foundation is its own legal entity with no owners — strongest for succession and continental-law families. The trust puts assets in a licensed trustee's hands under contract — familiar to common-law clients and lenders. The right answer depends on your assets, family and home-country rules; we compare both honestly.
No. Modern asset protection is legal separation, not secrecy: structures are reportable in your home country (CRS, FATCA) and protection comes from genuine legal separation of ownership, built before any claim exists.
Before you need it. Structures created when a claim is already foreseeable can be challenged as fraudulent transfers. The best protection is built in calm weather.
Panama's territorial system generally leaves foreign-source income of these structures outside Panama income tax. Structures within multinational groups earning foreign passive income should be reviewed under the economic substance rules of Law 526 of 2026 — part of our standard design check.
Confidential consultation in English. We compare the structures honestly for your case and quote the complete cost in writing.