What is Asset Protection?

Asset protection is a complex and highly specialized science. Asset protection is the science of protecting assets, in all their forms, tangible and intangible, from the aggression of creditors, whether the state or a specific state, courts, and judicial orders through letters rogatory, judicial seizures, divorces, kidnapping and forced redemption, litigation, and client complaints.

Studio Panama Italia, a specialist in asset protection and globally recognized for its professionalism in matters such as asset protection through foundations and trusts , has been offering the best personalized consulting platform for decades, with specialized lawyers for industries and individuals seeking effective legal optimization in asset management and asset protection. Asset management means wealth management, while asset protection means asset protection. We consider a preliminary telephone consultation to offer only the best legal and financial support to the discerning client. Precisely for this reason, Studio Panama Italia has decided for years not to offer asset management and asset protection services without a preliminary telephone consultation, fully refundable upon first order.

What is Asset Protection for?

The basis on which this asset protection discipline is built is to conceal the origin, transit and allocation of the asset through the use of certain instruments such as Foundations and Trusts, in specific countries, using legal and fiscal matters in order to legally and transparently evade the AEOI (Automatic Exchange of Information), comply with FATCA (Foreign Account Tax Compliance Act) if applicable, reduce due diligence disruptions due to FinCen (Financial Crime Enforcement Network), diligently apply AML and KYC (Anti Money Laundering) and (Know Your Client/Customer), informing through the right forms (W8Ben, W9 etc., IRS Forms such as 5472 and 1120 ), comply with the IGA (Intergovernmental Agreement) between the USA and Italy, avoid appearing in the Reporting Profile list, avoiding being both a CP (Controlling Person) and a PSC (Person with Significant Control) of complex structures. Finally, manage assets according to the available legal criteria and the needs of the end customer.

Why do customers look for asset protection tools?

The goal is to avoid, through proper asset protection, in compliance with the law—therefore legally and openly— being considered a UBO (Ultimate Beneficial Owner) both under Italian or European law and by the tax authorities of the country with preferential tax rates. This avoids being considered a UBO (Ultimate Beneficial Owner), thus remaining exempt from any risk lists and reporting profiles that tax authorities and banking supervisory departments are required to create based on extensive, perfectly matched data. This sets a precedent and requires them to report an individual or structure to specific supervisory bodies. This avoids both taxes and real problems with the tax authorities and the law. It also guarantees complete anonymity and control over one's assets, thus ensuring definitive and error-free protection of one's assets.

Is it legal to opt for Asset Protection for your assets?

Protecting assets is a financial and legal process, carried out by a specialized lawyer, in accordance with the law and in full compliance with the law, through detailed, legitimate, and transparent legal and financial procedures. It should be noted that asset protection only occurs when it has been protected in compliance with the laws of the country where the asset is initially located and the country to which it is legally and juridically transferred. To carry out such a thorough execution of asset protection procedures and create a product or series of products tailored to the client's individual needs, like a truly tailored suit, it is necessary to employ a tax professional who is not a tax resident or legally domiciled in Italy or Europe. The reason is easy to explain: any advice, even unofficial, on asset protection and asset management, given through an Italian or European tax advisor, accountant, lawyer or notary is null and void under European and Italian law, is open to interpretation, is automatically invalidated by the professional body to which it corresponds, and the professionals consulted must maintain data, communications and evidence between themselves and their clients and provide them to the authorities upon request.

Furthermore, they cannot provide advice on dynamics that the law explicitly prohibits, among other things, due to transparency regulations. Finally, all the specialists who operate in Italy and Europe for offshore services are merely intermediaries, that is, third parties who stand between you, unsuspecting clients, and professionals who actually operate offshore, like us, who produce, process, and deliver the product. When you operate through an intermediary, the risk is that you are transferring your data to a third party in Italy or Europe who does not have the means, nor the legal authority, to possess, peek at, or safeguard your business and private interests. The tools commonly used to create anti-seizure structures and to conceal assets are Private Interest Foundations (PIFs) under Civil Law, Trusts (now less used in favor of PIFs) under Common Law, and American LLLPs and LPs.

Asset protection is essentially the most important part of Flag Theory. The new Flag Theory is about determining the best course of action for the problem you're facing, using an international perspective. The structural hierarchy is designed to compartmentalize problems to best identify a solution based on your specific needs. If you're looking for optimal asset protection, you can't avoid addressing the issue with a series of specific, ad hoc consultancy services. There's no point in seeking asset protection by "buying" one of the specific products for the occasion without knowing whether you really need it or without understanding which of the products is right for you and which isn't.

For example: Where are the best places to incorporate globally as a remote entrepreneur? I pay too much in taxes; how can I legally mitigate this burden using an international, legal framework? My employees are too expensive and have enormous responsibilities; where else can I hire qualified, English-speaking workers? How can I effectively transfer wealth to my heirs? Which countries offer a second passport, and what is the process for obtaining citizenship in these countries? What is the most effective business structure in terms of liability and risk? How can I avoid taxes and inheritance taxes?

The questions are nearly endless, as are the needs to be met. Below, we propose the structures that, more than any other, benefit practically 100% of all stakeholders. These structures can then be shaped and modified, thanks to their inherent flexibility, to accommodate the needs of all stakeholders.

Asset protection for businesses and private citizens

Now, simply put, asset protection is the set of protective measures adopted by institutions (legal entities) and private citizens (natural persons) to prevent risks and threats that may affect them. Another definition is that it results from the adoption of a series of provisions aimed at delaying the identification of the vulnerable points of our targets by attackers of all kinds, both real and potential. In short, it is the protection of the property and assets of an organization, whether legal or family. To achieve this legal protection, organizations and individuals, under the guidance of a lawyer specializing in asset protection, analyze the "points of opportunity" and develop a security plan appropriate for active asset protection. The security plan must cover both the protection of property (physical security) and the assets and people representing that company or family.

In light of the above, it is important to emphasize that asset security is a preventative area within the organization, where the most appropriate security measures are determined to address financial and other threats and risks. It should be remembered that asset protection also includes the health, privacy, and personal and physical safety of oneself, one's family members, or employees. Some of these measures include monitoring dangerous or risky situations, changing countries, changing residence, changing tax regimes, changing identities, transferring assets, donating to private non-profit foundations, selling assets to other institutions, and even basic physical protection, such as armored vehicles, personal security, and surveillance technology.

Active protection also requires obtaining residency in Panama or Paraguay . Contact us.

You might also be tempted to find out what advantages there are to moving to the Mexican economic giant, taking up residence in Mexico

Divorces by edict in Panama

Asset protection also involves well-executed and fair divorces. Panama is at the forefront in obtaining divorces by edict, where the presence of both spouses on Panamanian soil is not required. It should be noted that this method always works when both spouses are residents of Panama, possess the Cedula E, and have been married in Panama or have it transcribed in a foreign country. At Studiopanamaitalia, we provide legal services for both the transfer or transcription of marriages in Panama and for divorces without the presence of both spouses by edict. We will act as witnesses on your behalf and represent the couple at the time of signing.