2025 Edition
Let me paint you a picture:
Savings at risk: If everything is in your name, what happens when someone comes after it? In a world where foreclosures and debts can destroy years of hard work, you need a solid structure that keeps your assets out of reach of third parties.
Economic uncertainty: Inflation, extortionate taxes, and an economy that never stops faltering. Every day that passes, it becomes more difficult to maintain your standard of living. How can you ensure that what you have today doesn't disappear tomorrow?
Suffocating tax pressure: You work hard, but it seems like everything is going straight to the IRS. That frustrating feeling of moving forward without really making any progress, especially when every euro counts to secure your family's future.
Privacy in danger: In a world where personal information is leaked at the slightest opportunity, maintaining discretion over your assets is vital. It's not about hiding, it's about protecting what's yours.
The solution is not as complicated as it seems, but it does require a clear strategy:
If you generate up to €50,000 a year, a US LLC created using our specialized platform LLC.Devil.Marketing is your best option. This structure provides you with administrative simplicity, total flexibility, and tax optimization tailored to your needs.
But if your income exceeds €50,000 per year or you are looking for absolute protection, then you need a more solid solution: a Private Interest Foundation (FIP) in Panama combined with an LLC Holding. This powerful combination, also available in LLC.Devil.Marketing, protects your assets against any eventuality, offering maximum privacy and exceptional tax optimization.
Remember, having nothing in your name doesn't mean having no assets. It means being one step ahead, ensuring your estate is protected from any economic or fiscal storm that may come.
In this guide, you will learn how to implement these strategies to protect what is yours, ensure the well-being of your loved ones, and sleep peacefully knowing that what you have built is out of reach of external threats.
Offshore Asset Protection
Your assets are safe and secure, protected from whatever comes next.
Let's talk about the FIP either Private Interest Foundations
A FIP
The key is that, although the FIP is the legal owner of the assets, those who establish it (the founders through a founding or protective council that administers it) can dictate how those assets are managed through internal regulations, called founding regulations
Furthermore, one of the great advantages of FIPs in Panama is that They do not pay income taxes, as long as the income is generated outside of Panama
For example, if you have annual income of €100,000 generated outside of Panama, with a FIP you do not pay taxes in Panama, while with other structures you would pay between 19%-30% depending on your country of residence. That means easily save you more than €20,000 a year only in taxes.
Another strong point is that, unlike other structures, FIPs They have no direct ownersThis adds an extra layer of privacy, as the beneficiaries of the foundation (which may be the founders themselves, family members, or third parties) are only revealed in very specific circumstances, and not in public records.
Panama, Oh Panama!
You probably know him from the "Panama Papers."
Strong Roots, Secure Future
Estate planning is the solid foundation that protects and nurtures your legacy, ensuring it grows and reaches those who matter most.
Plan The future of your assets is not just for the ultra-rich; it is a need for anyone who wants protect what has been built with effort. The estate planning
It is also the key to ensuring that your loved ones do not face legal and financial problems when you are gone. Without a good strategy, your assets can become trapped in long and costly proceedings, losing value and, worse still, leaving your family unprotected.
Estate planning is your way of saying to the future, “I am prepared and I know where my assets are going to go.” It is an investment in tranquillity for you and security for those who matter most to you.
When we talk about protecting your assets and securing your future, Panama stands out as one privileged option
First, Panama offers a foundations law what is flexible and robust, ideal for asset protection. Its regulations are clear and designed to keep your information private. This means that your assets are sheltered of curious glances and possible threats and governments (wink, wink, Spanish treasury).
In addition, the fiscal framework of Panama is highly favorable: there are no taxes on foreign income nor about inheritances or donations, which maximizes the value of what you've worked so hard to build. The political and economic stability of the country adds an additional layer of security, ensuring that your assets are protected in the long term.
Another point in favor is the administrative ease: the creation and maintenance of a Private Interest Foundation in Panama are simple and accessible processes. This is where we come in: we take care of Create and maintain your FIP, so you can focus on what really matters, knowing that your assets are in good hands.
In short, Panama combines a solid legal system With a favorable tax environment and agile administration, creating the perfect scenario for shield your assets and plan with tranquillity. 
Ready to discover how Panama can be your ally in protecting your assets? We are here to guide you every step of the way!
Limited Liability
Protection of your personal assets
For a Private Interest Foundation (PIF) to work perfectly, it is essential to understand how we work with you to structure and manage it. Here we explain how we do it:
Founder: Our lawyers will take care of founding the FIP for you, setting up all the initial aspects and ensuring that the foundation is set up according to your needs. Although we initiate the foundation, the actual control is managed by you LLC as protective, thus maintaining your influence and address. 
Founding Council: Instead of a traditional tip, we use a LLC Nominal
of the holding company of the FIPBeneficiaries:
While we take care of the administrative and foundational aspects, you maintain control and direction through your LLC subsidiary
The 4 Pillars of the Foundation
The Founder, the Founding Council, the Protector and the Beneficiaries.
When it comes to a Private Interest Foundation (FIP), the founding regulations and statutes
Founding Statutes: The founding statutes
Internal Regulations: The internal regulations Bylaws complement the bylaws, providing detailed guidelines on the day-to-day operation of the foundation. They establish rules for asset management, profit distribution, and conflict resolution. These regulations help maintain the foundation's integrity. efficiency and the transparency
Modifications and Updates: The statutes and regulations can be modified based on new needs or changes in legislation. It is important that these documents are kept up to date to reflect any adjustments in the founder's circumstances or in the legal environment. We help you update
The founding regulations and statutes
A Private Interest Foundation (FIP) is designed to last a lifetime. Its purpose is to provide a long-lasting and stable structure for the management and protection of your assets over time.However, it is also important to understand how the dissolution
Duration: A FIP is designed to exist indefinitely
Dissolution: Although the FIP is designed to last, dissolution may be an option in certain cases. dissolution of a FIP It is a process economical and efficientIf you decide that you no longer need the foundation or there are circumstances that require its closure, the dissolution procedure is structured to be simple and inexpensive
In case you decide to dissolve it, the process is economical and efficient
The Durability and Flexibility of your FIP
While the structure is designed to last a lifetime, its dissolution process is economical and efficient, ensuring hassle-free management at any stage.
Let them say mass
The FIP thing is not yours. It belongs to the Foundation.
When we talk about asset protection, one of the most valuable aspects is the non-seizable
Legal Security: A FIP is designed to offer legal certainty Asset protection. Assets within the foundation are protected from creditor claims and legal proceedings, thanks to the legal structure it provides. This protection ensures that, 2 years after your contribution to the foundation
Protective Structure: The non-seizability of assets is achieved through a solid legal structure
Long Term Benefits: Not only does the inembargability offer an immediate layer of protection, but it also provides long-term peace of mind
Fun fact: The inalienability of FIPs is one of the reasons why these foundations are highly valued by those seeking to secure the future of their assets. This additional protection provides a unique and essential peace of mind for effective estate planning.
When it comes to protecting your assets, the privacy and confidentiality are crucial aspects that should not be overlooked. A Private Interest Foundation (FIP) offers a level of protection and discretion
Protection of Sensitive Data: A FIP ensures that all information about your assets and their management is maintained confidential
Solid Legal Structure: Panamanian law provides a legal framework that protects the Confidentiality
Total Control: With a FIP, you maintain complete control over who has access to information and how your assets are managed. This allows you to make strategic decisions about your wealth while maintaining a high level of transparency. discretion
Note: Privacy is one of the greatest assets when it comes to estate planning. Not only does it protect your estate, but it also gives you the freedom to manage it without the constant worry of being watched. Confidentiality is another investment in peace of mind.
One of the great advantages of establishing a Private Interest Foundation (FIP) in Panama is the tax optimization, especially when you have income generated outside the country. This is crucial if you are looking to maximize the value of your assets, protect them effectively and significantly reduce your tax burden. Here we explain it to you clearly.
Foreign Income Tax Exemption: With a Panamanian FIP, your income generated outside of Panama is exempt from local taxes. This means that every euro or dollar you earn through online businesses, investments or activities abroad stays entirely in your pocket. By keeping more of what you generate, you can intelligently reinvest it, multiplying your wealth with a huge competitive advantage.
Highly Efficient Tax Strategy: Imagine going from paying high tax rates to practically zero on your international income. By taking advantage of this exemption, you can design a much more agile and advantageous tax strategy, allowing you to invest more resources in the real growth of your business or in your quality of life, instead of handing them over to the tax system.
Immediate and Lasting Positive Impact: Thanks to the FIP, as a beneficiary you will be able to receive your income with a significantly reduced tax burden through intelligent mechanisms such as usufruct, the savings regime (taxing as little as possible), or even through strategic donations in kind. This not only maximizes the real value of your money, but also gives you absolute flexibility to live and spend as you wish.
Carlos' story, a decision that changed everything: Carlos, a digital entrepreneur with successful businesses, used to pay more than 30% of his income in taxes every year. Tired of feeling like the system was punishing him for his success, he decided to make the leap to an international structure with a Panamanian FIP. Today, Carlos saves more than €25,000 a year in taxes, money that he reinvests directly in his business and in improving his quality of life. Carlos' smile every time he sees his tax bill is the best proof that he made the right decision. Can you imagine what you could do with that extra €25,000 each year?
| IRPF 2024 Savings Base Sections | Total type |
|---|---|
| Up to €6,000 | 19 % |
| From €6,001 to €50,000 | 21 % |
| From €50,001 to €200,000 | 23 % |
| From €200,001 to €300,000 | 27 % |
| From €300,001 to infinity | 30 % |
The savings base sections are much "lighter" than those of work, which range from 19-47%.
A Private Interest Foundation (FIP) in Panama offers you a incredible flexibility to manage your assets. Why is this so important? Here we explain it in a simple way:
Adapting to Market Changes:
Asset Restructuring:
Personalized Management:
The flexibility of managing a FIP allows you to adjust your wealth as your needs and the market change. It's like having a tailor-made suit for your wealth, which you can adapt to your needs at every stage of your life.
When it comes to protecting and managing your wealth, it is crucial to understand the differences between Private Interest Foundations (FIP) in Panama and trusts. For Spaniards, these differences are especially important due to the way each structure is treated by the legal and tax system. Here is a key comparison:
For Spaniards, a FIP in Panama not only provides a flexible and confidential structure, but also complies with local regulations, unlike trusts, which are not recognised in Spain. This advantage makes FIPs a very attractive option for estate planning.
When it comes to managing and protecting your assets, it is essential to understand the differences between a Private Interest Foundation (FIP) and a Public Limited Company (SA). Both structures have their own advantages and applications, but each is differently suited to your wealth needs. Here is a key comparison:
Objective and Main Function:
Structure and Management:
Privacy and Confidentiality:
Tax Benefits:
While a FIP is ideal for asset protection and estate planning with privacy and attractive tax benefits, a Limited Company focuses on business operation and profit generation, with a more regulated management structure and less confidentiality.
When planning for the future of your estate, it is crucial to compare the options available. Private Interest Foundations (PIFs) and traditional wills have different approaches to protecting and passing on your assets. Here are the main differences:
Objective and Main Function:
Asset Protection:
Flexibility and Control:
Privacy and Confidentiality:
Tax Benefits:
While a traditional will guarantees how your assets will be distributed after your death, a FIP provides active and ongoing protection of your assets, with flexibility in management and significant tax advantages.
To establish a Private Interest Foundation (FIP) in Panama effectively and without complications, here are the key steps and how we take care of each of them for you:
Required Documentation:
Founder:
Protective:
Founding Council:
Beneficiaries:
Registration and Formalization:
Let us take care of the legal and administrative details so you can focus on what really matters: protecting and managing your assets with complete peace of mind.
In order for us to establish your Private Interest Foundation (FIP) in Panama, we only need you to provide us with the following information. We will take care of the rest for you:
Required Documentation:
What We Will Do:
With these simple steps, your FIP will be ready to operate, while you focus on what really matters.
Setting up a Panama Private Interest Foundation (PIF) alongside a US LLC involves considering both initial costs and maintenance expenses to ensure its optimal operation. Here's what you need to know:
Preparation of the Protective LLC:
Initial Costs Included:
Total Annual Cost FIP + HOLDING:
We understand that $6,000 a year may seem like a lot at first glance. But let's think for a moment about what you're actually getting in return:
Significant tax savings:
Thanks to FIP's international tax optimization, the potential tax savings often far exceed the annual cost of the service. For example, a net worth or income of more than $50,000 per year can easily generate tax savings far greater than the total cost of your FIP.
Complete protection against legal risks:
What is the value of protecting your assets from unexpected lawsuits, litigation or seizures? Probably incalculable. For just $6,000 a year, you get the absolute peace of mind of knowing that your assets will be protected and untouchable after the initial shielding period.
Privacy and confidentiality guaranteed:
Keeping your financial information out of reach of third parties is priceless, especially in an age where privacy is rapidly eroding. The annual cost ensures that your entire structure remains discreet and safe from prying eyes.
No paperwork or headaches:
The annual cost includes absolutely everything: administration, legal compliance, annual filing of documents, ongoing support, initial management of the founding council and updating of regulations. All of this is managed by experts and the legal team in Panama so that you don't have to worry about anything other than enjoying your assets.
Ultimately, the $6,000 per year is a strategic and cost-effective investment in security, peace of mind and tax efficiency, the real value of which far exceeds its cost.
Transferring your assets to a Private Interest Foundation (FIP) is a crucial step in protecting and managing your assets. Here's how to do it efficiently and safely:
Asset Evaluation:
Documentation Preparation:
Execution of the Transfer:
Transfer Documentation:
Compliance and Review:
Transferring assets to a FIP is an operation that requires precision and care. We will assist you in every step of the process to ensure that everything is done correctly and efficiently.
Protection against claims and litigation is one of the main benefits of establishing a Private Interest Foundation (FIP). This protection ensures that your assets are protected against potential lawsuits and claims, guaranteeing the security of your assets. Here's how it works:
Robust Legal Structure:
Claims Protection:
Protector Backing:
Litigation Procedures:
Waiting Time for Shielding:
Audits and Compliance:
Laura Laura spent over a decade building her online academy from the ground up. When a business partner filed an unexpected lawsuit, Laura realized how close she came to losing everything. Luckily, two years earlier she had transferred ownership of her most important assets to a FIP in Panama. When the litigation finally came, her assets were completely shielded, untouchable by the claim. Today Laura sleeps peacefully knowing that what she worked so hard to build cannot be taken away from her by anyone.
Shielding your assets from claims and litigation is essential to protecting your wealth in the long term. With a FIP, you can rest assured that your assets are backed by a solid and effective legal structure, once the waiting period has passed.
Establishing a Private Interest Foundation (FIP) in Panama provides robust protection against economic crises and debt, ensuring that your assets are safeguarded in times of financial uncertainty. Here's how a FIP protects your assets against these challenges:
Insolvency Shield:
Protection Against Economic Crises:
Debt Management and Financial Obligations:
Flexibility in Management:
Recession Support:
The FIP is a powerful tool to protect your assets against economic crises and debt, offering an additional layer of security and stability. By safeguarding your assets in a solid structure, you can face financial challenges with greater peace of mind.
Designating beneficiaries is a crucial aspect of setting up and managing a Private Interest Foundation (PIF). Ensuring that profits and assets are distributed according to your wishes is essential to effective estate planning. Here's how the process works and what to consider:
Selection of Beneficiaries:
Appointment Process:
Protection and Security:
Types of Benefits:
Flexibility in Distribution:
Designating beneficiaries is a key element in ensuring that your estate is managed and distributed according to your wishes. By clearly stating who will receive what and under what conditions, you ensure that your legacy remains intact and in accordance with your intentions. 
Asset distribution rules in a Private Interest Foundation (PIF) are essential to ensure that your assets are transferred efficiently and in accordance with your wishes. These rules define how and when the PIF's assets will be distributed to beneficiaries. Here's how they work and how you can set them up:
Establishment of Distribution Criteria:
Distribution Mechanisms:
Special Conditions:
Contingency Planning:
Formal Documentation:
Clearly defining the rules for asset distribution allows you to ensure that your assets are transferred according to your wishes and needs. By establishing precise criteria and clear mechanisms, you facilitate efficient and effective management of your assets.
Flexibility is one of the great advantages of a Private Interest Foundation (PIF). Over time, changes may arise in your circumstances or those of your beneficiaries, and it is crucial to have the ability to adjust both the beneficiaries and the statutes of the foundation to maintain alignment with your objectives. Here is how you can make these changes:
Modification of Beneficiaries:
Amendment to the Statutes:
Implementation Process:
Changing beneficiaries and bylaws gives you the flexibility to adapt to changes in your life and regulations. Make sure you follow the proper procedures to keep your FIP effective and compliant.
Opting for a Private Interest Foundation (PIF) instead of traditional inheritance offers a number of significant advantages that can improve the efficiency of managing your estate and protecting your loved ones. Here's why a PIF may be a more advantageous option:
Minimization of inheritance taxes:
Protection and Legal Security:
Flexibility in Asset Allocation:
Efficiency in Management and Transfer:
Choosing a FIP instead of a traditional inheritance can not only help you reduce taxes and protect your assets, but it also gives you greater flexibility and control over how your estate is distributed. It's a strategic choice to ensure your legacy is handled in the best possible way.
When you establish a Private Interest Foundation (PIF) in Panama and manage it through a US LLC, you create an efficient tax structure that offers significant advantages. Here's how taxation works in this scenario:
Tax Exemption in Panama:
US LLC Tax Treatment:
Global Tax Optimization:
Compliance with Local Regulations:
The combination of a FIP in Panama with a Holding LLC and another Subsidiary in the US provides a robust and tax-efficient structure, maximizing benefits and protecting your assets with optimized tax administration.
Click to see its structure in detail.
When a Private Interest Foundation (FIP) in Panama distributes profits to Spanish beneficiaries, it is essential to understand how this income will be reflected in your tax return in Panama. SpainHere we explain the different ways in which profits can be distributed and their corresponding tax impact:
If the FIP obtains income from a US LLC and these are distributed as profit distributions to the beneficiaries directly from the Holding LLC, the tax impact in Spain is as follows:
FIP loans:
Each form of distribution has its own tax implications. Maintaining good documentation and consulting with a tax advisor will help you optimize your tax burden and comply with regulations in Spain.
[IMPORTANT NOTE]: If you live in a country without ISD (Inheritance or Gift Tax) such as Andorra, or that distributions from foreign sources are tax-free, You will not have to pay absolutely anything for the money that you receive as a FIP beneficiary.
:
The FIP (Private Interest Foundation) You must not carry out economic activities in Spain directly under your own name, since, by definition, these entities are non-profit.
To operate in economic activities such as renting properties or vehicles, must do so through a subsidiary Spanish SL, which will comply with all tax and legal requirements applicable to commercial companies.
However, the FIP can acquire and manage assets on your behalf, such as real estate, vehicles or equipment, as long as they are intended for the direct use of their beneficiary and do not involve an actual economic activity.
:
In the event that the FIP acquires properties for the use of its beneficiaries, it will have to register to have the capacity to acquire assets and pay taxes in Spanish territory, therefore it will have to obtain:
Foreigner Identification Number (NIE): In order to carry out economic activities in Spain, the FIP must obtain a NIE. This number is essential for tax identification and compliance with tax obligations in Spain for foreign entities and individuals.
:
Contracts and Agreements: It is important to formalize rental contracts properly to ensure that the terms and conditions are clear and legally protected.
Regulatory Compliance: The FIP must comply with all tax and legal regulations in both Panama and Spain to avoid problems with the tax authorities and ensure efficient and legal management of its assets.
With proper planning and compliance, the FIP can make the most of its assets and generate additional income through rentals, while managing its tax obligations efficiently.
Tax Returns for FIP:
Annual Declaration in Panama:
Regulatory Compliance for FIP:
Panamanian Regulations:
Registration in Spain:
Accounting and Auditing Requirements:
Record Keeping:
Regular Audit:
Attention and Continuous Support:
Tax Advice:
Regulatory Update:
Ensuring that you comply with all tax and regulatory obligations is critical to the efficient and legal operation of your FIP and LLC. With proper management and expert support, you can minimize risks and focus on maximizing the benefits of your structure.
Synergies with Offshore Structures:
The Private Interest Foundation (PIF) can be significantly enhanced when combined with other offshore entities, such as LLCs in the US, LLPs, SLs in Spain and OÜs in Estonia. Each type of entity offers unique benefits that, in combination with a PIF, can optimize asset protection and tax efficiency.
FIP and LLC in the USA: The LLC (Limited Liability Company) in the US is a flexible structure that can be used to manage businesses or assets. By having an LLC as a subsidiary of the FIP, the income generated by the LLC is channeled through the FIP, which can offer additional tax advantages and greater asset protection. The LLC structure also allows for a clear separation between the FIP's assets and business operations.
FIP and LLP (Limited Liability Partnership): Instead of an LLC, you can opt for an LLP. This structure allows for collaboration with other partners while maintaining limited liability protection. The LLP, combined with a FIP, can be used to manage investments or assets collaboratively, benefiting from the additional protection offered by the FIP.
FIP and SL in Spain: The Sociedad Limitada (SL) in Spain is a common business entity to operate in the country. Combining a FIP with an SL can be useful for managing local operations while protecting assets internationally. The FIP can act as the shareholder of the SL, facilitating asset protection and international tax planning.
FIP and OU in Estonia: The OÜ (Osaühing) is a company form in Estonia that offers significant tax advantages, including a very favourable dividend tax system. The OÜ, combined with a FIP, can optimise the tax management of income generated in Estonia and provide a flexible structure for managing assets and businesses in Eastern Europe.
Benefits of the Combination:
Global Tax Optimization: Combining a FIP with offshore entities such as LLCs, LLPs, SLs or OUs can take advantage of jurisdiction-specific tax benefits. For example, an OU in Estonia can offer advantages in dividend taxation, while an LLC in the US can provide flexibility in income management. The FIP acts as an umbrella to protect assets and optimize overall taxation.
Protection and Privacy: Using a FIP in conjunction with offshore entities enhances asset protection and privacy. The FIP protects assets from legal claims, while offshore entities provide additional layers of confidentiality and protection from public exposure.
Why do you think many athletes, celebrities or big businessmen turn to a Panamanian FIP? Because they know that privacy is a scarce commodity. The FIP not only protects your money, but also your identity and personal privacy against any public or legal exposure.
Diversification and Flexibility: These combinations allow for diversification of assets and operations across multiple jurisdictions. Flexibility in asset management and tax planning is maximized by combining structures that suit different needs and objectives.
Regulatory Considerations:
Compliance with Local and International Regulations: It is essential to comply with all local and international regulations in each jurisdiction. This includes filing appropriate tax reports and obtaining the necessary tax identifications in each country where entities operate.
Transparency and Declarations: Maintain transparency in all transactions and ensure you comply with reporting requirements in each jurisdiction to avoid legal issues. Correct reporting and compliance with tax obligations are crucial.
Consulting and Management:
Strategic Planning: Combining a FIP with other offshore entities should be carefully planned. Consulting with experts in international taxation and estate planning is essential to developing an efficient and legally compliant structure.
Continuous Maintenance: Managing and maintaining a combined structure requires ongoing attention. Make sure you receive ongoing advice to adapt the structure to regulatory changes and maintain tax optimization and asset protection.
Paying 0 is only possible if you live in a NON-Territorial country
Costa Rica, Panama, El Salvador, Dominican Republic, Cyprus, etc.
Introduction to Repatriation of Funds
Repatriation of funds and profits refers to the process of moving money or assets from a foreign entity or jurisdiction to your country of residence. This process is crucial to ensure that you can access and use your resources effectively, while complying with local and international tax regulations. Below, we explain how to manage this process correctly, using a Private Interest Foundation (PIF) and other offshore structures.
Repatriation of Funds Process
Planning and Strategy:
Regulatory Compliance:
Required Documentation:
Tax Aspects of Repatriation
Income tax:
Dividend Treatment:
Benefits Treatment:
Declaration and Reporting Requirements
Reports and Statements:
Additional Considerations
Transfer Costs:
Professional Advice:
Conclusion:
Introduction to Legislative Changes
Changes in tax and corporate legislation can have a significant impact on the structure and operation of Private Interest Foundations (PIFs). Staying abreast of these changes is essential to ensure your PIF remains compliant and takes advantage of any available tax benefits. Below, we explore how legislative changes may affect your PIF and what steps you can take to adapt to them.
Impact of Legislative Changes on FIPs
Modifications in Panamanian Regulations:
Changes in International Regulation:
Modifications in Spanish Tax Laws:
Legal insecurity in Spain
In Spain, legal uncertainty can be a significant challenge. Laws can be interpreted flexibly, meaning that the same rule can have different applications depending on the context and the interpretation made by the tax authorities. This uncertainty can create risks if not managed carefully. Therefore, it is crucial that your FIP is structured in a way that minimises legal and tax risks.
Measures to Adapt to Legislative Changes
Periodic Review of the Structure:
Legal and Tax Advice:
Monitoring Legislative Updates:
Additional Considerations
Importance of Effective Control:
Impact on Succession Planning:
Continuous Compliance:
Separation of Control and Benefits
To ensure that the Private Interest Foundation (PIF) operates legally and to prevent the Treasury or any tax authority from determining that the main beneficiary has effective control of the foundation, it is crucial to implement a series of strategic measures. These measures seek to ensure that the administration and management of the PIF are clearly separated from the beneficiary, thus avoiding possible tax and legal problems.
Use of Legal Representatives and External Administrators
Appointment of Legal Representatives:
Intermediaries and Management Companies:
Use of Additional Corporate Structures
Creation of Intermediary Entities:
Management Contracts:
Implementation of Policies and Procedures
Management Procedures:
Transparency and Documentation:
Ongoing Legal and Tax Advice
Consult with Experts:
Periodic Review:
Final Considerations
Avoid Direct Control:
Compliance with Regulations:
A Private Interest Foundation (FIP) can be the key to protecting and managing family assets in an effective and secure manner. These structures, established in Panama, provide a robust legal framework that allows assets such as real estate, investments or businesses to be transferred under the ownership of the foundation. This move not only protects assets from potential legal or financial risks, but also ensures centralized management that supports long-term family goals.
The FIP allows for full control over the administration of assets, establishing clear guidelines for their management and distribution. The profits generated by these assets can be directed to the designated beneficiaries, respecting the wishes of the founder and avoiding conflicts between family members. The possibility of incorporating professional managers also ensures efficient administration, maximizing the returns on the protected assets.
A significant advantage of using a FIP is tax optimization. By operating under a favorable tax system like Panama's, tax burdens are reduced, which increases the real value of the assets. However, it is essential that the foundation strictly comply with legal regulations, both local and international, to ensure transparency and avoid sanctions.
A Private Interest Foundation (PIF) is a versatile and effective solution for managing succession planning, ensuring that family assets are passed on in an orderly manner and in accordance with the founder's wishes. Through a PIF, it is possible to structure a clear plan for the distribution of assets, such as properties, investments and businesses, ensuring that beneficiaries receive their fair share without disputes or legal issues.
The flexibility of a FIP allows the founder to set specific rules for the transfer of his or her assets. This includes the designation of beneficiaries and the conditions under which they will receive the assets, either immediately or in stages as set out in the bylaws. This approach ensures that family goals are met, even in the absence of the founder, providing peace of mind and long-term stability.
Furthermore, the FIP acts as a shield against typical problems in succession processes, such as family disputes, excessive expenses in legal procedures or the risk of fragmentation of assets. By centralizing the assets under the foundation, management is simplified and exposure to unnecessary risks is avoided, protecting the assets against external claims.
Another relevant aspect is that the FIP allows for the integration of an efficient tax strategy into the inheritance process. Thanks to Panama's legal environment, the tax burden associated with the inheritance can be minimized, maximizing the net value that the beneficiaries will receive. This not only reduces costs, but also speeds up the transfer of assets.
A Private Interest Foundation (PIF) is a powerful tool to protect business assets and ensure their preservation against legal, financial or commercial risks. By transferring key properties, such as company shares, real estate, bank accounts or intellectual property rights, to the ownership of the PIF, these are protected against possible litigation, seizure or personal conflicts of the owner.
FIP acts as a legal shield, separating business assets from the risks associated with day-to-day business activities. This is especially useful in volatile or highly legally exposed industries, where protecting a company's essential assets can make the difference between stability and financial collapse.
In addition, a FIP allows the control and management of business assets to be structured in a clear and efficient manner. The foundation's bylaws can include specific rules for strategic decision-making, ensuring that the company's operations follow a long-term vision, even if the founder faces personal difficulties or is no longer able to lead directly.
From a tax perspective, the FIP offers the possibility of optimizing the tax burden associated with the management of these assets, taking advantage of the tax benefits offered by Panama. This not only increases the net return on business assets, but also facilitates reinvestment in the company itself or in new opportunities.
The FIP also simplifies business succession by allowing key shares or assets to be passed on in an orderly manner to subsequent generations or designated partners, avoiding internal disputes or unwanted fragmentation of ownership.
Learning about real success stories helps to understand how a Private Interest Foundation (FIP) can be a versatile and effective solution in different scenarios, from protecting assets to optimizing taxation. Below, we present outstanding cases that illustrate how this structure can offer concrete results in various contexts.
Family Asset Protection
The Martinez family had a large estate consisting of real estate, investments and family businesses. Concerned about possible litigation and ensuring an orderly succession, they decided to create a FIP in Panama. Through this foundation, they transferred their valuable assets, ensuring professional and protected management.
Results:
Effective Succession Planning
The Lopez Family needed a solution to seamlessly transfer their wealth generationally, minimizing the tax impact and ensuring a smooth transition. They opted to establish a FIP, which facilitated the distribution of assets and provided a solid legal framework to manage the succession process.
Results:
Business Asset Protection
The Fernández Group, an established company with significant assets, sought to protect essential assets such as real estate, machinery and intellectual property rights from potential operational and financial risks. By creating a FIP in Panama, these assets were transferred and managed under the foundation's companies, leaving them outside the reach of external claims.
Results:
Use for Investment and Income Generation
A group of international investors were looking for a structure that would centralize the administration of their assets and optimize their tax burden. They created a FIP to manage their investments and properties in different jurisdictions, benefiting from Panama's tax advantages.
Results:
Combination with Other Offshore Entities
An international technology company implemented a combined strategy that included a FIP in Panama, an LLC in the US and a SL in Spain. The LLC managed the operations in the US, the SL covered the activity in Spain, while the FIP protected the assets and facilitated global tax planning.
Results:
Effective asset management within a Private Interest Foundation (PIF) is crucial to ensure that assets are managed in accordance with the foundation's objectives and that benefits for beneficiaries are maximised. This section provides guidance on how to manage assets within a PIF, highlighting how key functions can be delegated to maintain discretion and operational efficiency.
Management Structure
Financial Asset Management
Real Estate Asset Management
Enterprise Asset Management
Records and Documentation
Regulatory and Legal Compliance
The Private Interest Foundation (PIF) in Panama is an effective tool for asset protection and management, but there are other offshore alternatives that can also offer benefits depending on specific needs. Below are some of the main alternatives to the Panamanian PIF, including foundations in Spain, Liechtenstein, and trusts in the United States.
Foundation in Spain
Foundation in Liechtenstein
Trust in the United States (especially in Delaware or Nevada)
Limited Company (SL) in Spain
Joint Stock Company in Estonia (OÜ)
Each jurisdiction and entity type offers advantages and disadvantages depending on the specific purpose of estate planning or asset management. While the FIP in Panama provides a robust and flexible structure with high levels of privacy, other options such as foundations in Spain and Liechtenstein, and trusts in the US, may be more suitable depending on the particular objectives and needs of the interested parties. Evaluating each option based on its features, costs and benefits will help to choose the structure that best suits the financial and asset protection objectives.
The Private Interest Foundation (PIF) in Panama offers a number of distinctive advantages that make it an attractive option for asset protection and management. Below is a summary of the key benefits that make PIFs stand out compared to other offshore structures:
Asset Protection
Confidentiality and Privacy
Miguel, owner of a technology company, never thought about how important it was to maintain his privacy until sensitive data from some direct competitors was leaked. Concerned about protecting his financial and personal information, he decided to bet on a Panamanian FIP. Now his businesses are protected against leaks and curious people, giving him complete peace of mind and control over who accesses sensitive information about his assets and family.
Flexibility in Structure and Administration
Tax Advantages
Efficiency in Succession Planning
Regulation and Effective Compliance
Setting up a Private Interest Foundation (FIP) in Panama, along with an associated LLC, can be a simple process if you know how to do it. We take care of all the management and execution; we just need you to provide us with some key information. Here are the essential steps:
Please confirm that your LLC activity is 100% digital. We also need to know how you plan to use the FIP – to protect assets, manage investments, or plan for succession? This will help us design the perfect structure for your needs.
Please provide us with details of the assets you will transfer to the FIP, such as properties, investments or specific assets. Tell us how you want them to be managed: rental, professional management or sale? We will then prepare a plan accordingly.
Decide how you want your benefits and assets to be distributed in the event of your death. State who the beneficiaries will be and what instructions must be followed to ensure your wishes are carried out.
Share with us your IDs, proof of residence and any relevant information. We will take care of drafting and reviewing all legal documents, from the founding deed to the internal regulations.
We will take care of the Panama FIP registration and LLC setup, from obtaining the necessary tax numbers to ensuring everything is compliant with local regulations.
We will help you appoint managers and establish management procedures to keep everything running efficiently. Our team will oversee that both entities operate optimally.
We will conduct regular reviews to ensure everything is aligned with your goals. If there are changes in legislation or your situation, we will adjust the structure as necessary.
Creating and managing a Private Interest Foundation (FIP) in Panama together with an associated LLC may seem complicated, but with the right advice, everything becomes much simpler. Why is it so important to have an expert advisor? Here I explain:
First, a good advisor makes sure that your FIP and LLC comply with all regulations, both in Panama and anywhere else. This protects you from legal problems and possible sanctions, keeping your structures within the law.
In addition, advisors have the ability to create tax strategies that allow you to maximize your benefits and reduce the tax burden to a minimum, taking full advantage of the advantages offered by these structures. In short: more savings for you and better optimization.
Experience in administration is another big plus. A professional knows how to manage your assets, coordinate all the paperwork, and make sure everything runs smoothly, just as you planned.
They also help you plan succession and protect your assets, ensuring that your assets are well distributed and protected.
And, if that were not enough, an advisor keeps you up to date with any change in the laws, allowing you to adjust your structure quickly to avoid problems and keep everything running smoothly.
The Private Interest Foundation (PIF), combined with structures such as the LLC, is a powerful tool to efficiently protect and manage your assets, plan your succession and optimize your tax burden. Preparing for the future is key to achieving your goals effectively and sustainably. Here is a guide to maximizing the value of your structure and ensuring a prosperous future:
Aim:
Protect your Assets: The FIP is your best tool to protect your assets against legal, financial and personal risks. With a well-designed structure, you can guarantee the safety of your assets and minimize your exposure to claims or litigation.
Key Actions:
Strengthens the Structure: Make sure your FIP is properly set up and complies with all legal regulations, offering an optimal level of protection. Update its structure if circumstances or laws change.
Manage Documentation: Keep statutes, internal regulations and contracts related to assets up to date. Well-organized documentation reinforces legal certainty and facilitates any necessary revisions or adjustments.
Ensure Legal Compliance: Regularly check that the FIP complies with applicable local and international laws. Having the support of a trusted legal advisor will help you keep the structure protected and in compliance.
Aim:
Comprehensive Long-Term Strategy: Design a strategic plan that combines asset management, succession, and tax optimization. Make sure each aspect is aligned with your future goals and prepared to adapt to any changes along the way.
Key Actions:
Smart Succession Planning: It establishes a clear framework for the distribution of assets and benefits among beneficiaries, ensuring an orderly and efficient transition. It includes flexible mechanisms to adapt to future needs.
Constant Update: Periodically review your structure and strategy to reflect changes in laws, regulations, or your own objectives. Flexibility is key to maintaining the effectiveness of your plan over time.
Permanent Expert Advice: Continuously collaborate with legal, tax and financial advisors to ensure your strategy remains optimized and aligned with your interests in an ever-evolving environment.
Aim:
Optimization and Growth of Assets: Maximize the tax and governance advantages offered by FIPs and LLCs to drive sustainable growth and ensure long-term prosperity.
Key Actions:
Smart Investment Strategies: Design an investment plan tailored to your FIP's objectives, making sure to adjust strategies based on market conditions to optimize the performance of your assets.
Strategic Diversification: Expands the portfolio of assets within FIP's subsidiary companies, including real estate, financial investments and other assets, to balance risk and maximize growth opportunities.
Planned Reinvestment: Analyze the profits generated and strategically allocate them to new investments or projects that increase the overall value of your assets and ensure their sustained expansion.
Preparing for the future with a FIP and LLC gives you a solid foundation to protect your assets, plan effectively, and thrive in an ever-changing environment. By focusing on protecting your assets, planning strategically, and maximizing profits, you ensure that your structure not only meets your current goals, but also adapts and thrives as your needs evolve.
Every day that goes by without protecting your assets is an unnecessary risk. Act today, because tomorrow may be too late.
If after reading this guide you are sure that your assets deserve total protection, you already know what to do.
Are you ready to take the next step and protect what really matters?
The decision is now yours: You can keep taking risks or you can start protecting what you've built right now. We already know which option you would choose.
Ready to take the next step? Contact us and let's start protecting your future and that of your family today.
In FIP.Devil.MarketingWe are with you every step of the way to establish and manage your Private Interest Foundation (FIP) in Panama from the comfort of your home. Our goal is to make the process as easy as possible for you, but keep in mind that the final say lies with the Panamanian/American authorities with their own regulations.
If for any reason any issues arise during the process, don't worry. We offer a 90-day period from when we receive your documents to request a refund, as long as there are no delays by the Panamanian/American authorities or any other external entity, as these factors are beyond our control.
Occasionally, tax authorities in Panama/USA or other countries may request additional information, which could complicate the process. In such cases, and much to our regret, we will not be able to offer a refund.
Although we have in-depth knowledge in managing FIPs and LLCs, for specific legal or tax matters, it is essential to consult an expert. A specialized lawyer or accountant will be your best ally for binding tax and legal consultations.
We are here to support you in any way possible, but remember that we are not lawyers. For more complex legal dilemmas, we will help you find a qualified professional.
The information we provide you may be subject to change, so we recommend that you do not consider it immutable.
