Offshore private interest foundations utilized today are rooted in history dating back to the days of the Roman Empire.  The Catholic Church was one of the first to utilize the concept that we now refer to as a foundation.  The Church was considered a "divine foundation" with the various organizations within the church having legal control over its "patrimony".  Foundations were initially conceptualized for communal purposes.  They were not utilized for private purposes such as serving the interests of individuals or families.

The concept of the "private interest foundation" did not come about until 1926 when the Principality of Liechtenstein created the "Law of Persons & Companies" (Personen und Gesellschaft Recht - P.G.R.), which first established the concepts of the "Family Foundation"and "Mixed Foundation".  The former being for the benefit of one or more members of a family and the latter enabling the Foundation to add a charitable capacity for other persons or specific charitable purposes.

Wealthy families have incorporated family foundations in Liechtenstein for many years in order to ensure the protection and safe transition of assets to family beneficiaries.  Liechtenstein, being a completely neutral principality for purposes of war (similar to Switzerland) has provided a safe haven for the assets of wealth families for many years.  Compared to other options the Liechtenstein Family Foundation is relatively expensive to establish and administer.

Offshore Foundation Recent History

Panama enacted private interest foundation legislation in 1995 which catapulted the popularity and use of the offshore foundation and brought it "to the masses".   The law was clear, concise and not overly regulatory.  The Panama Private Interest Foundation is versatile in its potential uses.  This coupled with relatively low fees offered by Panama firms (compared to Liechtenstein) made the Panama Private Interest Foundation a popular entity. 

Since 1995 several other jurisdictions have enacted their own foundations laws including St. Kitts & Nevis, Labuan, Anguilla and even common law jurisdictions Bahamas and Jersey. 

Seychelles Foundation

The Seychelles Foundation was made available from the passing of the Seychelles Foundations Act in December 2009 and offers one of the most versatile and dynamic foundations available from any jurisdiction.