What is a Private Interest Foundation (PIF)?
A PIF is a legal entity like a Trust or a Corporation. Being a legally-separate entity that can own property and do certain business transactions on your behalf, your identity can remain private. A PIF forms an “arm’s length” separation between you and your property for tax reasons and for protection against lawsuits. (Panamanian Law #25 of 1995, Article 11) Question # 2: What law creates PIFs? Private Interest Foundations are set up under Panama Law 25 of 1995. You can find an English-language copy of Panamanian Law 25 of 1995 by clicking on the link. Question # 3: How does a PIF work? A Private Interest Foundation works like a hybrid (a crossbreed) between a Corporation and a Trust. A PIF is like a Corporation because a PIF can live forever, like a Corporation. A PIF is governed by a Foundation Council. The Council takes the place of a Board of Directors for a Corporation. A PIF is like a Trust in that all of the assets held by the PIF are being held on behalf private parties, in the
