Can a foundation replace a holding company?

[ordoseclorum]

Can a private interest foundation in Panama replace the functions of a holding company in another country that also has territorial taxation, like Cyprus?

With 3 operating businesses in Panama (none are offshore, all pay taxes in Panama) and one in the UK, a Cyprus holding company is what I have been offered as a good, non-blacklisted jurisdiction with lots of banking options (as opposed to a Panama holding company). This Cyprus holding company would be owned by a foundation with nominees, for my personal ownership and taxation protection, in case I want to temporarily live in EU states for longer than 6 months.

Since Cyprus under AML5 will report everything, wouldn't a Cyprus holding company be a waste of money and time in fees, audits, and reporting when all the companies can be owned by the Panamanian foundation alone?

 

[Spinat]

It is possible but more complicated to manage on a daily basis compared to a holding company. For instant if you need to move money on a daily basis out of the structure it can be much more complicated and even more expensive.

 

[aage]

The Holding company is better and faster to setup right? I mean most open holdings not foundations.

 

[ordoseclorum]

The Holding company is better and faster to setup right? I mean most open holdings not foundations.

I'm not sure about faster, since all Panamanian structures are like bread and butter to local lawyers and it only costs you about $900 and less than a week to open one locally. Also requires no auditing and bank accounts are easy to open if you're a citizen.

Seems that Cyprus lawyers are incredibly expensive for the simplest of audits, and on top of that does not even provide protection anymore with all EU registries going public lately.

 

[aage]

Seems that Cyprus lawyers are incredibly expensive for the simplest of audits, and on top of that does not even provide protection anymore with all EU registries going public lately.

you don't want to use a lawyer to get audited accounts in Cyprus.

Sounds very cheap with the Panama setup, wonder if it is that easy.

 

[James Turner]

Foundations (they are not all created in Panama - other locations also offer Foundations) are often used as a holding vehicle and offer various benefits, add complexity to corporate structures, but are rarely used like a holding company, which banks itself. The Foundation is more often than not only in existence to complicate matters surrounding ownership. Which option is best depends what you want to achieve.