The New World Realty Group has partnered with Offshore Legal, a Panama Law Firm, to provide our clients with a full suite of asset protection and offshore banking services in the Republic of Panama.
Lawyers at Offshore Legal will provide free asset protection strategy consultations to customers of the New World Realty Group with the ability to incorporate Panama bearer share corporations and private interest foundations on our client's behalf. Learn how to best utilize Panama Corporations with Panama Private Interest Foundations to ensure that your real estate purchase is fully protected and shielded legally.
Any Panama Corporations and Foundations that we create will come complete with an offshore bank account in Panama that has online account access and an ATM card valid anywhere in the world.
Panama has long held a reputation as an offshore banking haven, largely because of the solid financial instruments it offers. For protecting assets (including real estate) and their owners, two of the best instruments available in Panama are the corporation and the foundation. Each offers secure and, if desired, anonymous ways of holding assets.
Asset Protection & Offshore Banking Services
The most important things to have when setting up an asset protection strategy are; political stability in the country where you are performing your offshore banking, rock solid banking secrecy laws and a corporation structure that can be set up anonymously all of which are available in Panama.
The services of a lawyer specializing in offshore asset protection strategy can also be invaluable. If you receive information from a third party or you research asset protection information on the internet for yourself can you really be sure that the information you have gathered is correct and legally binding?
Paying for a consultation with a lawyer will actually save you money in the long run and help to ensure that you are actually as protected as you think you are. Customers of the New World Realty Group will receive asset protection and offshore banking consultations free through our partnership with Offshore Legal.
Please contact New World Realty Group for more information or view the asset protection articles on the Offshore Legal website.
Panama Bearer Share Corporations
Panama’s Corporation Law was created in 1927, and remains to date largely in its original, simple form. The Panamanian corporation is very flexible in its possible arrangements, fast, easy and cheap to set up, without complicated requirements --- which has led to the creation of nearly half a million corporations registered in Panama.
Corporations can be formed quite easily in Panama with a minimum of three directors required (including nominee directors, for added anonymity). Any natural person, of any nationality, residing in any country, can act as a director, as can juridical persons such as other corporations.
No minimum capital is needed to establish a corporation, and the ‘articles of incorporation’, or the company’s intended activities, can be as wide-ranging or as particular as you wish to make them.
Once registered, a Panama bearer share corporation can acquire and purchase property, open a bank account, take out loans and mortgages, make contracts, and carry out business inside and outside of Panama. Best of all, its offshore (outside Panama) earnings and activities are entirely tax-free.
Panama Bearer Share Corporations are used by businesses and individuals across the globe seeking asset protection, tax minimization, privacy, investment diversification, affordability and convenience.
They are used for international trade, to settle trusts or foundations, to establish and own bank or brokerage accounts, and to hold ownership of real estate or any other type of asset. Corporations can also be useful for real estate transactions; by transferring the shares of a corporation that owns only the real estate property of interest. Ownership of the property can be transferred without incurring some of the taxes involved in the sale of real estate.
In some cases, Panama corporations are formed in the interest of highly private and confidential business transactions such as the movement of funds to another jurisdiction for asset protection.
Panama offers the strictest corporate book and banking secrecy laws available in the world, providing legal protection for your assets and identity. Most other offshore jurisdictions, such as the British-influenced countries, have bowed down to recent legislation that has begun the removal of bank secrecy in those British colonies around the globe. Panama, however, is a wholly sovereign nation; it is not governed or controlled by any other country.
Panama Corporate Tax Advantages
- No tax reporting requirements
- No income tax / capital gains tax / sales tax / capital stock tax / estate tax / stamp tax / inventory tax / property tax / gift tax / succession tax
- No tax to shareholders
- No interest on issuance of corporate shares
- No stock sale or transfer tax
All Panama Corporations created for New World Realty Group by Offshore Legal will include the following:
- Original Articles of Incorporation (in Spanish)
- Official English Translation of Articles of Incorporation
- Resident Agent
- Registered Office
- Optional Nominee Directors
- Pre-signed, undated nominee director resignation letters
- Share certificates issued to "the Bearer", or to any person or entity that you designate (foundations do not have shares)
- First Minutes of the Board (whereby the subscibers renounce their legal rights to one share each)
Please contact the New World Realty Group or view more information about Panama bearer share corporations at the Offshore Legal website.
Panama Private Interest Foundations
The Panamanian private interest foundation is a very interesting entity, and arguably the best of its kind in the world. Functionally, it acts as a cross between a trust and a corporation; however, it is quite different from either of these. Rather than being the legal personification of a person or group of persons (as with a corporation), it is a legal entity that does not have owners (share-holders, participants or partners) and it traditionally has a specific purpose for the benefit of an individual or group.
While one might associate the idea of a foundation with humanitarian or scientific activities, for example, the Beneficiary of a Panamanian foundation can be a single person --- including the Founder him/herself.
In fact, it is the broad definition of a Beneficiary that makes the Panama private interest foundation such a useful tool. While it can not be profit-oriented, or engage in ‘habitual’ commercial activities, the Panama Private Interest Foundation can acquire and own assets of all kinds (including shares of a corporation, trusts, real estate and more), hold bank accounts, and take part in activities to further its own aims.
Setting up a foundation needs only $10,000 to start. Like a corporation, three council members are named in the foundation’s charter, but unlike a corporation, there are no shares and no owners. More assets and funds can later be transferred in, and invested (always to further the foundation’s aims).
What happens to those assets and their profits can be made absolutely private. In fact, the privacy of all the foundation’s activities and operations are explicitly protected by law, with severe penalties for any breaches. The identity of the Founder, too, can remain completely anonymous, if desired.
Importantly, the assets of the foundation are considered explicitly separate from those of the Founder, and can’t be seized or frozen to satisfy the founder’s personal obligations --- even if the founder is the beneficiary of that foundation.
Finally, the assets of the foundation can be disposed of as simply, or in as great detail, as you wish. It can act as an absolutely binding last will and testimony, immune from the typical disputes these undergo, and have any number of stipulations. This offers clear advantages for international estate planning with regards to privacy, anonymity and protection to the Protectors, Founders and Beneficiaries of the Foundation.
A Panama Private Interest Foundation comes into existence upon registration in the Public registry. No approval from any public authority is required (Law No.25 of Jun 12, 1995 regulates Panama Private Interest Foundations).
Uses of Panama Private Interest Foundations
Panama Private Interest Foundations may be established for the benefit of a person(s), family, or specific social purpose; in so doing, several advantages can emerge which make the Foundation useful far beyond its primary aim. The following are some of the more commonly-used advantages.
Foreign Corporation Rules - Quite often, Panama Private Interest Foundations are used by people who are subject to Foreign Corporation (CFC) rules in their home countries. Several heavily-taxed countries such as the US, Canada, UK, Australia , New Zealand, France, Italy and Spain, among others, have CFC rules which require that their citizens submit tax declarations to the appropriate authorities, in which they declare that they are the shareholders of foreign corporations.
By establishing a Private Interest Foundation in Panama that holds or owns the shares of their foreign corporation(s), rather than holding the corporations shares in their personal name or in bearer form, CFC reporting rules can be avoided. Using the foundation as shareholder for their corporation removes ownership from one's personal name, transferring ownership to a foreign entity with privately appointed, anonymous beneficiaries.
Asset Protection - A Foundation's assets cannot be frozen, sequestered or subject to embargos except where the Foundation itself is in contravention of the law. Given there is no owner of a Foundation's assets, these assets cannot be used to satisfy any personal claims against you. The only instance in which any portion of the Foundation's assets can be withheld are to satisfy contractual obligations held directly by the Foundation; for example, in the case of a breach of contract on a real estate purchase . Otherwise, assets transferred to the Foundation are safeguarded by law from all external claims.
Personal Compensation - Making use of your Foundation's assets can be quite simple. By appointing yourself to a consulting or management position within the Foundation, by means of a formal written agreement signed by Council members, you can stipulate your compensation, including living accomodations, health care, travel expenses, legal expenses, expense account and more. This ensures that you are able to enjoy the use of your assets, without subjecting them to taxation.
Offshore Banking - In many cases, when opening corporate bank accounts or investment accounts, financial institutions require you to reveal the beneficial owners of the corporation. Again, using the Foundation removes ownership from one's personal name to that of a foreign entity with privately appointed, anonymous beneficiaries, for greater privacy and confidentiality in your banking affairs.
Transferring Funds - The Panama Foundation can be useful in transferring funds offshore or receiving funds from offshore.
Family Donations - Some people donate their funds to their Panama Foundations and later use the Foundation to give educational or special grants to their children, grandchildren or anyone else they choose. Some governments impose "gift taxes" and exhaustive reporting requirements when making donations; in this case fiscal regulations surrounding donations are avoided as Panama has no such requirements.
Last Will and Testament - The Panama Foundation can also act as an absolutely binding last will and testament, free from the typical legal disputes that can plague an ordinary will. The Letter of Wishes can outline exactly how the assets are to be disposed of on the event of your death, and can be kept utterly confidential until that time.
The Greater Good - The Panama Foundation can also be used for the more traditional purposes of a foundation: whether scientific, educational, religious, humanitarian or philanthropic, its assets can be used to further goals and activities of your choosing.
All Private Interest Foundations created for New World Realty Group clients by Offshore Legal will include;
- Secret Beneficiary Wishes Letter custom drawn up with you and one of our attorneys
- Registered Agent
- Foundation Protector Agreement
- Resolution from Nominee, Council members to open a bank account
- Three Nominee Council Members with Resignation Letters (for anonymity)
- Power of Attorney in your favor for bank account opening
For more information about Panama Private Interest Foundations please contact New World Realty Group or view the Offshore Legal website.
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