Offshore Foundations          

Foundations were first formed in Western Europe about 100 years ago. Their main use was for estate and asset planning. Foundations can be established in many countries including Panama, The Netherlands Antilles and the Bahamas.

A foundation is a separate legal entity that does not have members or shareholders. It is formed to reflect the founder´s wishes, an individual or a corporation. The wishes of the founder are expressed in the Foundation´s Deed of Incorporation, Articles of Association and Bylaws. Foundations may have charitable, commercial or family purposes.

Foundations are a very important component when structuring the ownership of family and corporate assets and are particularly important where Trusts are not generally recognized. They are in many aspects similar entities but afford the protection and continuity derived from the use of Trusts.

Uses of Offshore Foundations:

• Private relationship

• Wealth protection

• Holding assets, which can be transferred

• Inheritance tax planning

• Avoidance of forced heirship rules

• Separation of voting and economic benefits

• Pension funds

• Art collections

• Charitable purposes

By establishing an offshore foundation in an offshore jurisdiction, and the benefits do not go to residents of the said jurisdiction, there will be no local taxes applicable to the assets and income in the foundation.

Most popular jurisdictions to form Offshore Foundations are:

• Panama (Off-shore Private Interests Foundations in Republic of Panama)

• Saint Kitts

• Panama

• Liechtenstein

• Nevis