Panama
A Panama Foundation (Fundación de Interés Privado) is the classic civil-law asset-protection vehicle of the Americas, filed under Law 25 of 1995. It is not a company and not a trust: it is a self-owning legal person with no shareholders, governed by a Foundation Council and steered by private by-laws (reglamentos) that name the beneficiaries. The jurisprudence is deep and well-litigated, the structure is understood across Latin America, and once registered the foundation can hold assets, shares, bank accounts, and IP in its own name. The honest catch is reputational: Panama sits on the EU Annex I tax blacklist as of February 2026, so EU counterparties will apply enhanced due diligence by default and some will refuse outright. We disclose that up front and let you self-select.
- Tier
- GRAY
- Formation
- 7 business days
- Apostille
- Supported
- UBO register
- Private
- EU list
- EU Annex I
- FATF list
- Off the FATF lists
Figures verified February 2026 · Sources: EU Annex I/II and FATF list status, detailed in Plain talk below.
Can a non-resident form a Panama company?
Yes. A non-resident can form a Panama entity. Panama is a GRAY jurisdiction. Banking is more selective and a compliance desk reads it as mid-tier, so confirm your rail accepts it before you file. Formation is $2,499 all-in / ₿0.03139447 / 3,139,447 sats, paid in Bitcoin or USDT, and takes 7 business days.
- Tier
- GRAY
- From price
- $2,499 all-in
- Formation time
- 7 business days
- EU / FATF status
- EU Annex I, off the FATF lists
- Public UBO register
- No
- Apostille
- Supported
What makes Panama different
- Civil-law foundation, not a trust and not a company: a self-owning legal person with no shareholders, purpose-built for estate planning and asset separation.
- Law 25 of 1995 is mature and well-litigated, with decades of Panamanian jurisprudence behind it.
- Founder control is preserved through private by-laws (reglamentos) that name beneficiaries without filing them on the public record.
- The most-recognized foundation structure in Latin America; counterparties across the region understand it without explanation.
What you are actually buying with Panama
GRAY means banking is more selective and the entity reads as mid-tier to a compliance desk. It is not blacklisted, but expect a closer look and a narrower set of rails that will onboard it.
Major US business-banking rails do not bank Panama Foundations. EU banking is the hard part: Annex I status means EU counterparties apply enhanced due diligence or decline. Plan banking before you form, and budget 30 to 90 days for a successful onboarding with apostilled and notarized documents. See the Banking page for named rails.
EU Annex I status is real and it bites. Panama is on the EU's list of non-cooperative jurisdictions for tax purposes as of February 2026, so many EU banks and corporates will refuse to deal with the foundation or apply enhanced due diligence by default. If your counterparties or your banking are EU-heavy, this is the wrong tool; look at an EEA-aligned foundation instead.
US persons should be especially cautious. Panama structures draw heightened IRS scrutiny and carry a reputational overhang from the Panama Papers era, and foreign-trust-style reporting (FBAR, Form 8938, and possibly Form 3520 / 3520-A for a foreign foundation) can apply. Get cross-border tax counsel before forming; we do not file those returns for you.
What we collect, and what Panama filing requires
- Email, country of residence, intended use statement
- OFAC + EU + UN sanctions screen (every order)
- Tier 1 KYC (ID + proof of address + source-of-funds attestation): required on this SKU
- Beneficial owner and founder identification per Panama AML law
- Notarized passport copy, proof of address, and source-of-funds documentation for the founder and named beneficiaries
- Foundation Council member details for the public deed and Public Registry filing
The honest note: The licensed Panamanian formation agent is a regulated resident agent statutorily required to identify the founder and ultimate beneficial owners regardless of our platform-level tier. Panama does not operate a public UBO register, so beneficial-owner data is held by the resident agent and reported to the private government registry accessible to authorities, not published. Anonymous formation is not available.
Where Panama entities bank
Major US business-banking rails do not bank Panama Foundations. EU banking is the hard part: Annex I status means EU counterparties apply enhanced due diligence or decline. Plan banking before you form, and budget 30 to 90 days for a successful onboarding with apostilled and notarized documents. See the Banking page for named rails.
Full banking rankingWhen this jurisdiction is right (and wrong)
If you need a civil-law foundation rather than a trust, for estate planning, succession, or holding assets that should outlive their founder, Panama is the most-mature option in the Americas and the by-laws give you precise control over who benefits and when.
If you operate across Latin America and want a regionally-recognized holding structure that local counsel, notaries, and counterparties already understand, the Panama Foundation is the default and will not need explaining.
If your counterparty pool is mostly outside the EU and you are comfortable settling the formation in Bitcoin, Panama gives you a self-owning ownership wrapper at a known cost without forcing your assets into a corporate share structure.
EU Annex I status is real and it bites. Panama is on the EU's list of non-cooperative jurisdictions for tax purposes as of February 2026, so many EU banks and corporates will refuse to deal with the foundation or apply enhanced due diligence by default. If your counterparties or your banking are EU-heavy, this is the wrong tool; look at an EEA-aligned foundation instead.
US persons should be especially cautious. Panama structures draw heightened IRS scrutiny and carry a reputational overhang from the Panama Papers era, and foreign-trust-style reporting (FBAR, Form 8938, and possibly Form 3520 / 3520-A for a foreign foundation) can apply. Get cross-border tax counsel before forming; we do not file those returns for you.
Banking is harder and slower than for a US LLC or even a mid-tier offshore IBC. Account opening is documentary, can run 30 to 90 days, and some banks have stopped onboarding Panama entities entirely. We surface only the rails that still do.
Common Panama questions
Is Panama on the EU blacklist?
Yes. As of February 2026 Panama is on EU Annex I, the list of non-cooperative jurisdictions for tax purposes (the actual blacklist), not the lighter Annex II. We disclose this on every Panama surface. The practical effect is enhanced due diligence or outright refusal from EU banking counterparties. If that blocks your use case, the Liechtenstein Foundation is the EEA-aligned alternative with comparable civil-law mechanics.
What's the total Year-1 cost?
$2,499 all-in. That covers the Panama government registration, the public-deed notarization, the Foundation Council nomination, the licensed resident agent for the first year, and OffshoreGuy service. Year-2 onward is $999/yr for the resident agent and government renewal.
How long does formation take?
About 7 business days for the Public Registry filing once we have your completed Tier 1 KYC and the founder and beneficiary documentation. Apostille, which Panama supports, adds 5 to 10 business days where your bank requires it. Bank-account opening is separate and typically adds 30 to 90 days.
Is a Panama Foundation anonymous?
There is no public UBO register in Panama, and your beneficiaries live in the private by-laws (reglamentos) rather than on the public deed, so beneficial ownership is not published. But the licensed resident agent is statutorily required to identify the founder and ultimate beneficial owners under Panama AML law and reports them to the private government registry accessible to authorities. Privacy from the public is real; anonymity from a regulated agent or the authorities is not.
Can I form a Panama Foundation in Bitcoin?
Yes via OffshoreGuy. Accepted forms of payment are BTC (on-chain and Lightning) and USDT, settled via BitSettle. The Panamanian government and the resident agent are paid in fiat from our operating account; you settle the single all-in invoice in crypto.