The Corpag Group can provide (tax exempt) Private Foundation in several jurisdictions.

Comparison with the Anglo-American Trust
General
The Private Foundation is an interesting alternative to the Trust, especially in the so-called civil law jurisdictions. In the Western-European continental legal systems, the Trust is still an unknown phenomenon. This also counts for jurisdictions based upon these legal systems, such as most of the Latin American countries. The Trust is a typical product of the so-called common law legal systems, with England/UK and most of the states of the USA as the best known exponents.

The legal systems that are based upon the Code Civil do not know the distinction between legal ownership and beneficial ownership that is so typical for the Trust.
Therefore, in actual practice, effects of surprise can be caused if an Anglo-American Trust participates in legal matters in jurisdictions that are not related to the Anglo- American legal system. It is furthermore often hard to explain the concept of the Trust to clients in such jurisdictions. Complicating factor is the extensive documentation that will have to be prepared upon incorporation.

The possibilities of application of a Trust and a Private Foundation are almost the same and also the fiscal aspects hardly differ. The advantage for civil law jurisdictions is however that for the user the Private Foundation, contrary to the Trust, is a well-known and reliable legal form.

Possible Applications
Estate Planning
The Private Foundation can be used in situations in which it is desired to separate private or family capital in an entity that is subject to a favorable tax regime. The Private Foundation for example can play an essential part in estate planning. As such, it is an instrument, according to the wishes of the Founder, to have the capital transferred to next generations or other legal successors without them directly having the power of disposal of property. Under certain circumstances the use of a Private Foundation can prevent the multiple levies of gift and inheritance tax. In this respect one can think of a Private Foundation as the owner of the shares in a family company. The Private Foundation can also be a more flexible alternative for the foundation pseudo trustee. Moreover, applications regarding donations or gifts to a Private Foundation are interesting.

Asset Protection
Furthermore, a Private Foundation can be used as an instrument of asset protection when protecting family and company capital against political risks (expropriation), criminal risks (kidnapping), economical risks (excessive professional and product liability) and other risks (family spend thrift). Another conceivable application is the so-called art foundation.

Passive Investment Company
The Private Foundation can also very well be used as passive Investment Company or the Private Foundation can be used for passive top-holding of the shares in the underlying active participations.

Holding of Real Property
The Private Foundation can be used for holding real property as a passive investment, as long as the Private Foundation does not engage in exploitation activities such as maintenance of the building, active collection of the rent, etc.

Expected capital gains
The Private Foundation can be used if you expect that in the future considerable capital gains could be realized on the sale of certain assets. These promising assets could be contributed to the Private Foundation. Upon sale of the asset the capital gains are allocated to the Private Foundation. An alternative would be that the Private Foundation will purchase a long term call option (at fair market value), which gives the Private Foundation the right to purchase the asset at a fixed price in the future. If and when the asset has substantially increased (as expected) in value the Private Foundation will exercise its option and realizes a non taxable capital gain.

Click here for more information Curacao, Netherlands Antilles - Private Foundation
Click here for more information Panama City, Panama