• Panama Trust

  • Legal Framework

    Trusts in Panama are governed by the Trust Law No. 1 of 1984 and Private Foundations Law No. 25 of 1995.

  • Registration Requirements

    There is no requirement for the registration of trusts in Panama, unless real property located in Panama is given in Trust.

  • Settlor

    The Settlor does not need to be a permanent resident of Panama.

  • Beneficiary

    The Beneficiary does not need to be a permanent resident of Panama.

  • Trustee

    There is no requirement for the Trustee to be permanent resident in Panama.

  • Protector

    The appointment of a Protector is optional.

  • Perpetuity Period

    There is no maximum duration for Trusts in Panama.

  • Property

    There is no restriction on the property of a Panama Trust.

  • Confidentiality

    As there are no registration requirements for a trust in Panama the details of the Settlor and Beneficiaries are not disclosed to any person other than the Trustee. There is also a strict privacy provision in the legislation which expressly guarantees confidentiality.

  • Taxation

    Non-Resident Trusts in Panama are exempt from taxation.

    Distributions to foreign beneficiaries from a Panama Trust are not taxable in Panama in the hands of the beneficiaries.

  • Asset protection

    A Trust in Panama will not be void or voidable in the event of the Settlor's bankruptcy or liquidation thus achieving asset protection from creditors. However, the Trust may be set aside by its Creditors if it is proven to the satisfaction of a Panama court that the trust was made by the Settlor with the intent to defraud its creditors.

  • Reporting Requirements

    There are no reporting requirements for a trust in Panama.