Panama Private Interest Foundation

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The Panama Private Interest Foundation (PPIF) is a type of private foundation formed under the laws of Panama.[1] It is based upon the Liechtenstein "Stiftung" (a family foundation).


Foundations are mainly used for philanthropic or estate planning purposes. In terms of the legal structure, a PPIF lies somewhere between an offshore company and an offshore trust.

Functionally a private foundation differs from an offshore company in that a foundation cannot engage directly in commercial business activity, although it may own investments such as property, stocks, bonds and companies.

The foundation has a founder, protector, beneficiary and council members. There are no owners to a Panama Foundation. A "Letter of Wishes" may be written by the founder to specify how the foundation's assets should be handled following the founder's death.


  • Protects assets - Since the PPIF is not owned by anyone (it has no owners), the assets of the PPIF can't be claimed if the founder, council members, protector or beneficiaries have unpaid debt.
  • According to Panama law, the assets of a PPIF are non-freezeable. There are some exceptions, but if the money has been in the foundation for over 3 years, it's certainly non-freezeable.
  • Foundations can be used to help family members financially according to the protectors instructions, and forced heirship rules are specifically excluded.
  • It can be used to collect royalties.
  • Tax free for income derived outside of Panama. Local bank interest is also tax exempt.


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