If you’re seeking options to protect your assets robustly, achieve tax efficiency, and maintain privacy, you’ve possibly heard of offshore foundations. What is an offshore foundation? What are the benefits? How do you set them up? We will explain in this article. Additionally, you can contact us for a complimentary consultation to receive guidance, more information, and support throughout the process of establishing an offshore foundation.
What is an Offshore Foundation?
An offshore foundation is a legal entity formed in a foreign jurisdiction, ideal for those seeking asset protection and privacy. They are a structure that you can use for estate planning, holding assets, and even for charitable purposes.
An offshore foundation has a major difference from an offshore company:
- It has no shareholders or owners.
- There is a specific foundation council in place to manage it.
- It is established to serve a purpose set out in its governing documents.
If we compare an offshore foundation with a trust, the former has a more formal structure and functions more independently, as a foundation owns the assets, and its functions do not rely on trustees. They are typically irrevocable, but not in all jurisdictions.
Benefits of Offshore Foundations
If you’re wondering why setting up an offshore foundation is worth considering in 2025, here are the top reasons.
Asset Protection
An offshore foundation creates a legal separation between you and the assets placed within it, shielding them from creditors, lawsuits, and unforeseen legal claims. Since you no longer legally own the assets, they are far more difficult for others to reach.
In many jurisdictions, the foundation is also protected by strong asset protection laws, which include provisions like a short statute of limitations. These laws prevent claims after a certain time, making it extremely difficult for old creditors to come after your foundation’s assets.
Privacy and Confidentiality
While often trusts provide a greater degree of privacy, confidentiality laws in some offshore jurisdictions are strict for foundations as well.
Top jurisdictions provide considerable privacy to foundations regarding details of the owner, beneficiaries, council members, and other information.
Tax Efficiency
Offshore foundations are often registered in jurisdictions that offer tax advantages. Foundations are considered tax-exempt entities, meaning they don’t pay local income tax, capital gains tax, or inheritance tax on foreign-sourced income.
Although you should always consider how your home country’s tax laws apply, in most cases, an offshore foundation can help you structure your affairs in a way that legally reduces your tax burden.
Succession Planning
Offshore foundations are an excellent choice for estate planning, and not just for the ultra wealthy. Foundations can let you effectively control how your wealth is passed on to future generations and avoid probate and similar court procedures.
You can set out specific wishes in the foundation’s statutes rather than leave everything to chance. The foundation council will carry out your plan and guarantee a smooth transfer of wealth according to your terms.
How to Set Up an Offshore Foundation
Setting up an offshore foundation may sound complex, but we’re here to help you at every step, from paperwork to registration and beyond.
Step-by-Step Guide
- Define the Purpose: You need to decide, with our help, whether your goal is asset protection, estate planning, or charitable purposes.
- Select Jurisdiction: Every jurisdiction has its benefits, and we recommend the most suitable offshore jurisdiction for you.
- Draft the Charter and Regulations: Our experts help prepare the legal documents that define the foundation’s rules, including the purpose, beneficiaries, and powers of the foundation council.
- Appoint the Foundation Council: These are the individuals or entities responsible for managing the foundation, and we assist you in this.
- Submit Application: We file all documents with the relevant offshore authority and complete the registration.
- Open Foundation Bank Accounts: We handle banking arrangements so your foundation is ready to operate, often requiring only documentation and deposits from your side.
- Ongoing Support: Foundations require maintenance, from annual filings to compliance updates, but we can offer professionals to help with this.
We make the process efficient, saving you time contacting disconnected professionals, paying separate fees, and ensuring compliance, because we use our own network of experts and take care of as much as possible.
FREE CONSULTATION
on offshore structures and jurisdictions
that would best meet your
asset protection goals.
on offshore structures and jurisdictions that would best meet your asset protection goals.
Documents Needed
To establish your offshore foundation, we’ll typically require:
- Certified ID (passport or national ID)
- Proof of residence address (utility bill or bank statement)
- Description of the foundation’s purpose
- Initial endowment (minimum amount varies by jurisdiction)
- Names and details of the foundation council members
Our team guides you through the entire checklist and handles submission.
Choosing the Right Jurisdiction
A well-chosen jurisdiction can make or break your offshore foundation’s effectiveness. We take into account:
- Tax laws and whether the foundation will be tax-exempt
- Strength of asset protection laws
- Statute of limitations period
- Privacy rules
- Stability and reputation of the country
We’ll help you compare top jurisdictions to find the best match.
Top Countries to Set Up an Offshore Foundation
Choosing the right jurisdiction for your offshore foundation is critical. We help you compare the world’s most trusted offshore destinations based on your goals, whether you’re focused on asset protection, tax efficiency, or long-term estate planning. Below are three standout options to consider in 2025.
Nevis
Nevis is known for its strong asset protection laws, short statute of limitations, and the Nevis Multiform Foundation Ordinance of 2004. This allows for flexible foundation types—ordinary, trust, company, or partnership—offering tailored strategies for estate planning and asset protection.
These foundations are independent, self-sustaining, and tax-exempt when assets come from outside Nevis. You can convert other structures into a Nevis foundation or continue operations there. Setup takes 10–15 days after application and requires a board, secretary, local agent, and basic documents. You can choose your bylaws and the level of confidentiality.
Panama
A private Panama foundation is a legal structure built for asset protection, privacy, and estate planning. Governed by Law No. 25 of 1995, it combines the benefits of trusts and corporations, but it cannot engage in commercial profit-making.
Panamanian foundations enjoy strong confidentiality and are tax-exempt on offshore income. There are no capital requirements or reporting obligations for foreign-sourced earnings. With one founder and a three-member council, you gain control and flexibility without the high maintenance typically associated with larger organizations.
The setup is done in 14 days from the submission of documents. You can appoint a protector, use nominee directors, and manage real estate, bank accounts, or investments—all structured to protect your legacy across generations.
Serbia
Serbia supports Private Charitable Foundations (endowments), ideal for asset protection, estate planning, philanthropy, and privacy. These structures legally separate your assets from your personal estate and are not subject to claims during divorce or legal disputes.
Founders are not considered beneficiaries, enhancing confidentiality. You control the board and manager (a Serbian resident or nominee). Foundations can hold businesses, property, and other assets, provided they don’t exceed the core capital of about 30,000 EUR.
Remote setup is possible with a power of attorney, although bank accounts typically require one in-person visit.
Costs of Setting Up an Offshore Foundation
While the cost varies by jurisdiction and complexity, here’s what to expect with our services:
- Nevis: Approximately 9399 EUR, including registration, legal drafting, and nominee services.
- Panama: Costs start from 5,450 EUR, depending on customization.
- Serbia: From around 18,000 EUR for a charitable foundation.
All setup fees include legal drafting, foundation council appointments, filing, and support.
Ongoing Maintenance Fees
Maintenance fees will vary depending on the jurisdiction and the nature of your trust. The fees cover:
- Annual government fees
- Compliance reporting
- Registered agent fees
- Foundation council services
We will clearly outline these fees upfront, avoiding any surprises.
Risks and Considerations
While offshore foundations offer real advantages, there are risks to be aware of.
Legal and Compliance Risks
Each jurisdiction has its own legal framework. Without proper guidance, mistakes can lead to invalid setups or even legal exposure.
We ensure compliance with all local rules to avoid issues. Our legal team monitors changes to ensure your offshore foundation stays compliant.
Potential Reputational Risks
Using an offshore foundation can sometimes be misunderstood. Media and regulators may associate it with tax evasion for no reason at all.
Transparency and legal compliance are key. We ensure your offshore foundation is structured legally and ethically to avoid any negative perception.
Country-Specific Risks
Political instability or changes in tax laws can affect offshore jurisdictions. This is why choosing the right country is critical.
We monitor all jurisdictions and will advise you if any risks emerge. Your foundation is not left unattended—we stay with you for the long haul.
Conclusion
An offshore foundation can be your most powerful tool to protect your assets, streamline estate planning, and gain tax efficiency in 2025. The foundation structure offers protection and control that can help you reduce exposure to lawsuits, manage inheritance, or support charitable purposes.
We can help you establish an offshore foundation, mitigate risks, and manage the process as much as possible, freeing up your resources and time. If you’re ready to protect your assets and plan for the future, an offshore foundation is a smart move—and we’re here to make it effortless for you.
12 June 2025 