Overview
Panama Private Interest Foundations (PIFs) are hybrid entities
– part trust, part corporation – created under
Panama's Private Foundation Law of 1995. They are often used
as vehicles for cross-border investments, but their unique nature
creates complex US tax and reporting considerations that require
careful planning.
What are PIFs?
PIFs are legal entities without shareholders, structured around
a founder, a foundation council (like a board of directors), an
optional protector, and beneficiaries named in the charter.
Registered in Panama's Public Registry, PIFs can own assets,
manage investments, and conduct business if profits support the
foundation's purpose.
Under Panama's territorial tax system, foreign-source
income is exempt, making PIFs ideal for asset protection, estate
planning, and confidentiality. Assets are separate from the
founder's estate and shielded from creditors, while
beneficiary identities remain private.
