Although foundations are normally set up for charities, Panamá has a unique law allowing for the creation of Private Interest Foundations, a hybrid between a corporation and a trust. The main advantage of a private foundation is that individuals can place their assets under the protection of a legal entity, which holds title to the assets.
Read the PDF document: Matters Offshore, December 2013, OFFSHORE PILOT QUARTERLY,Trust Services, S.A.
Panama’s dollar-based economy rests primarily on a well-developed services sector that accounts for more than three-quarters of its GDP. Services include the operation of the Panama Canal, logistics, container ports, flagship registry, the Colon Free Trade Zone, banking, and tourism. From 2006-2012 the GDP has averaged 8%, and the GDP reached 10.7% in 2012. Panama has also had the lowest inflation rate in Latin America over the last 20 years. The many infrastructure and public and private construction projects have been a major factor in creating jobs, with the unemployment rate reduced to only 4.4%.
