Investing In Panama: Sustainable Reforestation
Reforestation, Panama Reforestation, Teak Plantation
With Law 24 of 1992 and other regulations, called "Financial and Forestry Incentives", the Panamanian government granted incentives for foreigners to acquire residency by purchasing land designated for reforestation or already reforested lots with tree plantations of various types.
A minimum investment of US$48,000.00 with the Business Panama Group and its international acclaimed 3rd party rated "best of class" Reforestation Partner will allow you to obtain a Complete Reforestation and Investor Visa Solution. Comparing with other countries that ask a US$50,000.00 for just the residency, reforestation alternatives with the Business Panama Group and its Reforestation Partner (Internationally Rated No.1 in Latin America ), also gives you the opportunity to own direct title land, a great forest that will make you excellent money on a long term basis, and provide you a fast track affordable way to achieve Panama Permanent Residency for you and your entire family.
Investment Benefits
The Business Panama Group and its Reforestation Partner have put together a Complete Reforestation and Investor Visa Solution that will allow you to own a tropical timberland sustainable forest direct title real estate investment that has many different profits, investment, tax shelter, asset protection advantages.
The cost for this Complete Reforestation and Investor Visa Solution is US$48,0000 including all of the following:
- You become owner ( direct title real estate of 2 hectares, 4.95 acres ) and direct beneficiary from the results of the carbon credit sales in the early years, seed sales, thinning phases and sustainable harvesting cycles every 20 to 25 years.
- Incorporation of an IBC or Foundation including all first year fees and charges.
- Complete Investor Visa & Residence application including all first year legal services for the family principal. We can process wife and dependents at a reasonable additional cost.
- All legal services related to the Investment Agreement and Deed of Transfer of Title of Ownership to the IBC or Foundation.
- Our Reforestation Partner will provide your plantation maintenance services for a period of 25 years, counted from the date of planting the trees.
- Our Reforestation Partner guarantees your plantation for a period of 5 years, counted from the date of planting (if loss of trees occurs during the first 10 years, below the minimum guaranteed level our Reforestation Partner will pay the cost of replanting)
- Our Reforestation Partner will prepare the land for planting, using cutting edge planting techniques that are the most successful in the industry, as scientifically documented
- Planting of your trees, from the most highly regarded nursery for
indigenous species in Panama, if not all of Central America. The planting of trees includes native species such as Mahogany, Yellowtree and Rosewood plus Teak.- Pruning, fertilization as required for optimum growth, and optimum profits
- Patrolling the plantation to minimize all risks
- You will receive topographic drawings showing landmarks.
- Title of land.
- Registration before the ANAM (Autoridad Nacional del Ambiente).
Compare with other investment opportunities
Depending on their rating, and comparable risk factors involved, corporate bond are yielding from 5% to 9.5%. At an annual yield of 8-12 %, the incentives created by the Panamanian government and the idea that you are helping to protect the environment, make best of class reforestation investment much more rewarding than other long term investment.
Other highlights of the investment offered by our Reforestation Partner are:
Attractive Profits
- Up to 12 % per year on a 25-year term
- From timber sales, seed sales and the sales of Carbon Credits
- Additional increase of value on the land expected
Security and Best Quality
- Real Land Ownership with registration in Panama
- Unique System of Insurance pool. More than 3 % of reforested land will be held back for investors in case of total loss
- Key Person Insurance
- Auditing through renown international auditing firm
- FSC Certification through SmartWood ("well managed")
- Rating as No.1 Forest Investment in Latin America
- Risk minimization through ecological portfolio model (7 mainly native species of fine timber)
- Co operations with renowned Universities such as the Yale School of Forestry and Environmental Studies
- Tree guarantee: committed to replant trees that have died due to disturbed growth
Investment for generations
- Also after the first 25 years cycle - ongoing yields from forestry
- Inheritable and therefore profits for many generations
- Increase in value of the soil quality through sustainable management
- Increase in value through worldwide decrease of utilizable soil
Positive ecological effects
- Biodiversity: Creation of habitat for flora and fauna, also for endangered species
- Protection from erosion of the endangered tropical soi
- Water reservoir and filtering functio
- Positive influence on local and global climate, compensation of C02 Emissions
Positive social effects
- Creation of secure long-term employment possibilities in rural regions.
- Prevention of emigration and pauperization.
Profit Scenarios and Cash Flow
The following graphic show profit scenarios for a minimum forest investment of US$40,000.
| Profit Scenarios | ||
|---|---|---|
| Bad Case | Mid Case | Good Case |
|
Assumptions General inflation rate 2% per year No inflation cleared price increase in wood Wood only sold on local market (Panama) No returns from seed sales No returns from Carbon Credits
|
Assumptions General inflation rate 2% per year Inflation cleared price increase on wood of 1% Wood can be sold nationally and internationally 15% of Teak and Mahogany is of veneer quality 6,000$ from seed sales Carbon Credits US$/t (total 6,000 US$)
|
Assumptions General inflation rate 2% per year 2.5% increase of inflation cleared wood price Wood can be sold internationally 15% of Teak/ Mahogany is of veneer quality 6,000 seed sales Carbon Credits 7 US$/t (total 10,000 US$)
|
The following chart shows the cash flow for a midcase scenario. As the investment is a generation project and with full land ownership, it is inheritable and profits can be gained not only after the harvest in the year 25, but in the year 50, 75 and 100.
| Year | Cash flow in US$ |
|---|---|
| 10 | 6,000 |
| 15 | 12,800 |
| 18 | 32,000 |
| 22 | 66,000 |
| 25 | 244,000 |
| Total Cash Flow year 25 | 361,800 |
| 50 | 560,000 |
| 75 | 750,000 |
| 00 | 960,000 |
| Plus appreciation of realty |
Steps to Get an Investors Visa
Pursuant to Panama law, the Immigrant Visa for reforestation investors is granted
to any foreigners who have invested their own capital in Panama in a business conducting
reforestation activities. If investing through a Panamanian corporation or foundation,
the same must be approved by the official entity named ANAM as a reforestation business
(Autoridad Nacional del Ambiente ) which means that the corporation conducting any kind
of reforestation activities must have the previous approval granted by ANAM to operate
in Panama in order for the investor to apply and get the visa. To apply for this visa,
the following documents will be required:
- Power of Attorney for the visa application.
- Certified check in the amount of US$500.00, to the order of the Ministry of Government and Justice, in terms of a Repatriation Deposit.
- This deposit shall only be returned if the interested party declines it within a period of one (1) year following its approval.
- Certified check in the amount of US$100.00 to the order of the National Treasury
- Confirmation of payment of government fees for the change of status from tourist to immigrant.
- Health certificate issued in Panama indicating that the applicant does not suffer from any infectious, contagious disease and has good physical and mental health.
- Certificate of negative HIV results issued in Panama.
- Copy of the last receipt showing payment of the Payroll of the company, in which the investment was made certified by the Panama Social Security Fund.
- Certificate of the company's registration with ANAM.
- Photocopy of the passport.
- Seven (7) passport size photographs.
- Police record issued by the competent authorities in the last place of residence, duly certified a Panamanian Consul in the place of issuance.
- Certificate from the Secretary of the company attesting to the value of the shares owned by the applicant and the investment of $40,000.00.
- Certificate from a Certified Public Accountant setting forth that the applicant is the holder of shares discharged and paid for of the company, for a minimum amount of US$40,000.00.
- Notarized copy of the document (check, certificate of banking transfer, bonds, etc.) by means of which the applicant paid the shares of the company; and a receipt or certificate issued by the company acknowledging such payment.
- License number of the Certified Public Accountant. Copy of the company's Tax Payer Registration (RUC).
- Upon approval of the visa, it shall be sealed in the passport and the immigrant shall receive an I.D. Card known as provisional Resident Permit, valid for a year, which constitutes the Immigrant Visa.
At the expiration of the aforementioned one year period, the immigrant must apply for the Permanent
Residence Status and the right to obtain a Cedula ( Panama 's official I.D. card). In order to apply
for this immigration status the documents filed for the immigrant visa application shall be presented again
Following, the Immigration Department shall issue a resolution which shall be sent to the Electoral Tribunal, granting the permanent residence and the right to obtain a Cedula (I.D.). The immigrant shall then appear before the Personal ldentification Division of the Electoral Tribunal, with the purpose of obtaining a Cedula, valid for a period of 12 years, renewable for similar subsequent periods, indefinitely.
Upon being granted the Permanent Residence, the expatriate is no longer subject to comply with any other requirement or formality, except for: a) the obligation of obtaining a Departure/Entry Permit authorizing him to leave and re-enter the national territory of Panama; and b) not to remain outside of Panama for a period exceeding of two (2) consecutive years. If the expatriate remains out of the country for more that two (2) uninterrupted years, he shall loose all residence rights granted to him and his Cedula shall be cancelled.
Reforestation projects are exempt from income tax for 25 years on sales profits and on earnings from stock and bond issues. These companies may also deduct 100 percent of their investment and 100 percent of interest payments related to the project.
In this way, the Business Panama Group together with its internationally acclaimed Reforestation Partner will provide you a Complete Reforestation and Investor Visa Solution. In the Business Panama Group, we have licensed real estate brokers, lawyers and other professionals to assist you on any business or matters you need.
We also can help you with:
- Locating properties in Panama City, Bocas del Toro, Boquete, Islands or Mountains
- Forming a company to own your property
- Legal services to purchase the property
- Applying for your residence program
- Home owners' insurance
- Bank financing
- Title insurance
- Others
For more information about our Complete Reforestation and Investor Visa Solution, please click here to contact us.
