Private foundations are legal entities set up by an individual, a family or a group of individuals, for a purpose such as philanthropy. Offshore Private Foundations has its origin from Liechtenstein Persons and Company Act. Offshore Private Foundations are perfect source for the asset protection which is used by the clients who needs to transfer their asset to a third juridical person in order to protect their assets from lawsuits, divorces, garnishments and tax deduction. Offshore Private Foundations are known for their confidentiality and beneficiaries are not being disclosed in any public document. These Foundations are exempted from tax in Panama whether it is income tax, real estate tax, wealth tax, sales and transfer tax. The uses of various Offshore Private Foundations are to support Family, tax purposes, protection and management of assets, educational purposes and charitable purposes, for the purpose of serving as guarantee or collateral, for the management of insurance.