To set up a foundation in Panama, the founders will agree upon its non-commercial and non-profit purposes. The uses of a foundation can be multiple and will depend on the investor’s business interests in Panama.
Our team assists those who open a company in Panama, however, our local team of experts can also guide those interested in knowing more about non-profit organizations that can be used, but are not limited to, charitable purposes. Our Panama offshore company formation experts can help you open a foundation here.
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The scope of the foundation in Panama
A foundation in Panama is not established for commercial or trading purposes. It cannot engage in commercial activities. In most cases, the foundation is established with one clear objective, such as charity, religious purposes, educational or cultural pursuits, among others.
Those who open a foundation in Panama enjoy the following advantages:
- Flexibility: a foundation can be set up for different types of purposes;
- Confidentiality: the foundation’s charter is not a publicly accessible document (see below for more information about this document when you set up a foundation in Panama);
- Asset protection: depending on the foundation’s scope, it can be used for asset planning and protection;
- Tax exemptions: Panama private interest foundations are generally exempt from taxes on income and assets. We recommend discussing this with our Panama offshore company formation agents.
The basic steps required to set up a foundation in Panama
In summary, the foundation creation steps are the following:
- Draw up the charter (see below);
- Appoint the foundation’s managing body;
- Register the foundation with the authorities in Panama – the Public Register.
Upon request, our team that can help with Panama company formation can also assist with foundation creation and proper registration. Below, we offer more details on the foundation’s constitutive documents and requirements.
A charter is drawn up to set up a foundation in Panama. This is a document that includes the following information:
- The foundation’s name, with consideration not to choose a name that is identical to an existing one. The term “foundation” will also be included after the name to set it apart;
- The initial capital of the foundation and its address in Panama;
- The purpose of the foundation, its objective;
- The beneficiaries of the foundation;
- The duration, and other clauses, as may be required.
A registered agent is used to set up a foundation in Panama. This designated person will be involved in the set-up phase, as well as afterwards. Our team specializing in Panama incorporation can also give you more details about the locally employed registered agent services.
Special requirements for foundations in Panama
Those who wish to set up a foundation in Panama must also be aware of the ongoing compliance requirements, in addition to the set-up stages.
Some of the specific requirements that apply in the case of foundations in Panama include:
- USD 350 establishment license fee;
- USD 400 annual license fee starting with the second year;
- An initial endowment or capital of at least USD 10,000. A bank account can be opened for this purpose.
Please keep in mind that these fees do not refer to all the costs associated with opening a foundation in Panama and they can be subject to change.
According to the Panama Public Registry, the statistical data on private interest foundations in 2025 was the following:
- There were 1,456 total private interest foundations on register;
- There were no bankrupt or merged foundations;
- 255 foundations were dissolved between January and May 2025.
If you want to know more about how to set up a foundation in Panama, and the obligations towards the Public Register, our team can help you. We can also provide answers to questions regarding certain legal provisions through our lawyers in Panama.
We also offer services tailored to the needs of other clients such as those who have questions about immigration to Panama, Panama citizenship, or how to gain residency in Panama.
Contact us for more information about how we can assist you.