People use offshore corporations and foundations for several reasons including offshore asset protection, confidentiality, privacy, tax planning, investment diversification, international trade, estate planning, and much more. A carefully designed corporate strategy using a Panama Corporation and/or Private Interest Foundation can assist you with each of the above mentioned areas.
Offshore Asset Protection
By transferring your assets to a Panama Corporation and/or Foundation, you are automatically protecting your assets to the fullest extent. Without asset protection, you could suddenly lose everything you’ve worked so hard for.
We live in a “litigious society”, but do you know what that means to you? Lets take a look:
- 9 out of 10 lawsuits in the world are filed in North America. The US has the highest rate of lawsuits in the world, followed by the UK, Canada, Australia, and New Zealand.
- A new lawsuit is filed every 30 seconds in the US. It is estimated that there are over 100,000 law school students in US law schools right now.
- If you own a business or practice a profession, you have one chance in three of being named a defendant in a lawsuit in the next year, and it is only getting worse.
Why you must act NOW to protect yourself:
Many people are completely unaware of one important legal fact of life; once someone files a lawsuit against you – or makes any other type of claim on your assets – it’s too late to try to protect your wealth, or move it to a protected environment offshore. (To do so is called “fraudulent conveyance” or “concealment of assets” – crimes in themselves).
That means, if you wish to protect yourself, you have to act now, before it is too late. You must move your wealth offshore ahead of time for your asset protection plan to do any good. If you wait until you’re facing trouble, you will certainly be out of luck.
If you move a portion of your wealth to a private, offshore corporate account, it can be virtually out of reach from anyone who might try to seize everything you own, whether it be a lawsuit or even a governing authority who decides to freeze your assets.
This is where your private offshore corporation and offshore bank account can come in very handy. Your private corporate account, held by a foreign bank in a country with the strongest bank-secrecy laws on earth is truly the best asset protection you’ll find.
You could be left penniless and in debt by any of the following:
- A negligence or injury claim, whether justified or not, that exceeds any insurance coverage you may have.
- Breach of contract through no fault of your own.
- A professional malpractice lawsuit.
- Lawsuits from disgruntled business partners or employees.
- Huge fines for violating state or federal law due to actions of an employee.
- Claims from creditors if your business should fail.
- Catastrophic medical bills.
- Seizure of your home or other assets without due process.
Here’s a quote from a U.K resident that was faced with hardship after a lawsuit, which could have been prevented with offshore asset protection:
“I thought I had it all – a beautiful home for my family, the car I had always wanted, a growing portfolio of investments, children in excellent schools, dream vacations with my wife, etc. But that all changed when I was served with process naming me as a Defendant in a huge lawsuit. It didn’t matter that I was convinced that I had done nothing wrong. I lost everything I had. I still owe my attorney for the legal costs.” – Richard S., UK.
Confidentiality & Privacy in Panama
Many people move assets by creating a company offshore simply because they are tired of intrusion into their financial privacy in their home countries. Today, people in most developed countries have zero privacy in their financial affairs, spending patterns, medical records, etc.
One of the main reasons that Panama is one of the most popular jurisdictions to incorporate offshore is because Panama offers the utmost in privacy and confidentiality.
- Panama offers the best bank secrecy laws in the world with an Offshore Bank Account.
- Panama offers the best corporate secrecy laws in the world.
- There is no such thing as “piercing the corporate veil” in Panama.
- Revealing banking information to third parties is a crime, punishable by prison.
- Panama has no mutual legal assistance treaties (MLAT’s) for sharing of banking information with other countries.
- Panama Corporations offer “Bearer Shares”, for shareholders to maintain complete anonymity and privacy.
- Panama Private Interest Foundations allow for Private Protectorate Documents and Private Letters of Wishes, enabling controllers (Protectors) and beneficiaries of foundations to remain completely anonymous and private.
Here’s another quote, which highlights an example of how offshore asset protection can benefit you:
“Two months after I created my IBC, I got hit with a big lawsuit for something that was not my fault. Instead of spending a lot of time and money defending the suit, I had my lawyer explain to their lawyer that I didn’t own anything. And it was all over! They could not verify any of my assets that were sheltered offshore.” – John R., New Zealand.
Panama Tax Planning
Tax planning is also a very important aspect of overall financial planning. Panama is one of the most popular jurisdictions in the world to incorporate because Panama is a 100% tax haven. Panama corporations and foundations offer the following tax benefits:
- No income tax on foreign earned income.
- No capital gains tax.
- No interest income tax.
- No tax on issuance of corporate shares.
- No tax to shareholders.
- No stock sale or transfer tax.
- No capital stock tax.
- No estate tax.
- No gift tax.
- No stamp tax.
- No succession tax.
- No inventory tax.
Read another quote by a client that utilized a Panama foundation for tax planning:
“Three years ago, I relocated to Panama, and have been able to save hundreds of thousands of dollars in capital gains taxes while investing through a Panama IBC held by a Panama Private Interest Foundation. Plus, my securities portfolio is private and safe from lawsuits or intruders, and my kids will inherit the assets free of taxes or legal probate issues. I wish I had known about this 20 years ago!” – Derek L., BC, Canada.
A Story About Two Kings
Elvis Presley was known as the “King” of Rock & Roll who died in 1977 leaving an estate valued at $10 Million USD.
It took 3 years for the probate court to rule that his estate would pass to his sole daughter Lisa Marie.
Lisa Marie didn’t get the $10 Million. Legal fees, probate court costs, appraisers, and taxes reduced the estate to $3 Million USD. Lisa Marie lost 70% of what she was supposed to receive to the costly probate process.
Another “King” was the King of Oil, H.L. Hunt, who had a happier ending for his heirs. He died in 1974 and left an estate worth $2 Billion USD (equivalent to $7.5 Billion in today’s dollars).
This king planned the future of heirs much better Elvis Presley did. He placed his assets in a variety of legal structures such as trusts, life insurance, funds, etc.
When he died his only asset was a $2,000 pick-up truck which certainly was not worth a costly probate process. His entire estate went to all of his heirs as he intended them to without any probate court involvement.
What is to be learned from the Tale of these Two Kings?
Only you can control your wealth. Not governments, litigants, creditors, or banks can determine what happens to your assets in the present time and in the future.
Diversify offshore by setting up legal entities and structures in a country with good bank secrecy laws, anonymous corporate ownership, and no taxes to hold all of your assets and to quickly pass them onto your heirs when you pass away.
Many people use offshore corporations to take advantage of offshore investment opportunities and diversify their investments internationally. You may be from a country that has laws which restrict their citizens from investing in offshore mutual funds, stocks, or offshore private placement investments. Panama corporations and foundations are not restricted from any type of investment in the world.
Through Panama brokerage firms, you can invest in any mutual funds, stocks, bonds, options, commodities, futures, money markets, etc. on any major exchange around the globe.
Offshore Merchant Accounts also provide you with the ability to collect payments from your clients offshore in a tax free environment.
Advantages to Offshore Investment in Panama
- Panama is home to the second largest international banking center in the world next to Switzerland.
- Panama has the best banking and corporate privacy laws in the world.
- Panama’s laws make it extremely difficult to sue or seize assets. In Panama, before suing your company, one must post a court bond of 20% to 30% of the value of the claim. Then, the one pursuing legal action is required to file a brief justifying why he or she should be permitted to sue. If the judge in the court feels the suit is not warranted, the litigant will not be allowed to sue. If they are permitted to sue, and they ultimately lose the case, then they forfeit the court bond! Needless to say, there are very few frivolous lawsuits in Panama.
- Panama’s circulating currency is the US Dollar.
- Panamanian banks pay generally offer more competitive interest rates on USD savings accounts and CD’s than most other banks do.
- Panama has a very sophisticated, developed, and stable banking infrastructure.
- Panama’s Stock Exchange is of the most advanced in Central & South America.
- Panama is home to the second largest international distribution center (free trade zone) in the world next to Hong Kong. Most other tax havens economic stability depends only on the offshore banking business and tourism. Panama is a genuine international business trade and offshore banking center, not just a tax haven.
“When I realized that I could actually live off of the interest of my investment in a Panamanian bank CD, I couldn’t believe it. So I flew down to Panama from my home in France and verified it for myself – it was true. I made the deposit and the bank has provided me with great service! I have since decided to relocate to Panama because the cost of living is so much cheaper, and I love the tropical weather.” – Pierre T., Paris, France.
International Trade via Panama Coporations
Panama corporations are extremely useful for international trade. Panama is home to the second largest international distribution center ( tax free zones ) in the world next to Hong Kong. Many of the worlds’ largest companies set up distribution centers in Panama’s tax free zones. Since the Panama Canal is strategically located in the center of the Western Hemisphere, Panama is the perfect location for goods to be distributed internationally, and tax free. Panama’s tax free zones allow companies to import and export products from Panama without any import or export taxes.
“Most people don’t know the strategies and techniques that are available for tax planning on importing. Using better tax planning and offshore structuring of my import business has increased my bottom line by 3 fold just in the first 9 months. The nice thing is that I can save my profits offshore and re-invest in a tax free environment. This has really provided me with a lot of financial security for the future.” – Charles D., Ireland.
Panama Estate Planning
Most of your estate could go to the government, not to your heirs. Because a corporation has a “perpetual” life and is a juridical person, a carefully designed corporate strategy allows you to care for your loved ones free from probate, inheritance taxes, and all the red tape that goes along with passing of an estate. Your heirs can inherit the assets that you leave for them, exactly as you left them, free of deductions or legal delays.
Panama Private Interest Foundations are the ideal estate planning entity for the following reasons:
- Panama Foundations can hold assets such as corporations, bank accounts, brokerage accounts, real estate, or any other type of asset, and in Panama there are no taxes or reporting requirements.
- Panama Foundations can have a nominee foundation council and the foundation council members can be from anywhere in the world or replaced at any time by the Protector.
- Panama Foundations Protectors (controllers) can be appointed through a Private Protectorate Document, allowing the Protector to control the foundation privately and anonymously.
- Panama Foundations Beneficiaries can be appointed by the Private Protector through a Private Letter of Wishes, allowing the beneficiaries to also remain private and anonymous.
- The Panama Foundation has no Panama reporting requirements and pays zero taxes when assets are donated to or received from the foundation.
- The Panama Foundation can be used as a charitable entity, for receiving donations or donating to anyone that the Protector designates.
“The last thing I want to do is give away 50% of my money to the government when I die. I want my children to have what I have worked all my life for, and they shouldn’t have to fight with the government over it. What right is it of the government to take my money just because I’m gone? I just won’t allow that to happen.” – Marian T., Germany.
Is Offshore Asset Protection Right for You?
Ask yourself the following 10 questions to determine if offshore asset protection would be beneficial for you:
1. Do you currently have $100,000 or more in cash or equity in your property, business, or investment portfolio?
2. Do you have $100,000 or more in value of liquid assets?
3. Do you currently generate an annual income of $75,000 or more?
4. Are you currently serving as a publicly registered director, officer, or trustee in a domestic corporation, non-profit organization, or any public service organization?
5. Are you currently serving as a partner in any domestic partnership or limited partnership?
6. Are you currently single or divorced and considering marriage or remarriage?
7. Do you currently own (or are a partner in) an airplane, pleasure yacht, or ship?
8. Are you currently working as an independent contractor, manufacturer, doctor / physician, builder / architect, accounting professional, financial / investment advisor, professional consultant or self-employed individual?
9. Are you currently, or have you been uninsured or underinsured for any significant period of time?
10. Are you currently anticipating or expecting to receive an inheritance?
If you have responded with a YES, to any one of the above questions, then we can assure you that our offshore legal services can benefit you.
Secure Your Assets Today!