Teak investments in Panama fall into two general categories:
- Permanent residency visa programs
- Standard, profit-oriented timber investment opportunities.
Reforestation visa programs can make money if selected carefully, but their primary purpose is to obtain a residency visa for the investor. (For the highest returns, a traditional timber investment is a better option; see this article.)
Panamanian law grants reforestation visas based on ownership of a minimum of 5 hectares (about 12.4 acres) of timber land titled in the investor’s name or in the name of a corporation in which the investor has at least a 51% share. There are two types of reforestation visas:
- Applicants who invest at least $60,000 in a reforestation project can qualify for a temporary Panamanian visa. This visa can be renewed every year for up to 6 years.
- Applicants who invest $80,000 or more in a reforestation project can apply for permanent residency in Panama after 3 annual renewals. After 5 years as permanent residents, investors can apply for Panamanian citizenship. This is one of the few types of visa programs that give investors the opportunity to become naturalized citizens of Panama.
Panama Forestry offers one of the most financially advantageous visa investment programs currently available, with minimal entry cost and maximum return on your timber investment. The $80,000 purchase price buys you a 5-hectare teak plantation titled in your name, with no additional cash investment required for the life of your timber project.
For more information on our visa program, click on the Reforestation Investment link above.
Of all the tropical hardwood species — perhaps of all tree species — teak holds a particular fascination, much like gold among the precious metals. Valued for more than 2000 years as an extraordinarily durable building timber in its native range in Asia, teak is now coveted worldwide. Its excellent dimensional stability and aesthetic qualities have led to its use in shipbuilding, home construction, furniture manufacturing and other applications requiring a strong, stable wood.
As the sustainable supply of teak from natural forests (now almost exclusively in Myanmar) diminishes and the demand continues to grow, the general trend in the future will be toward increased production of plantation-grown teak. Teak is suitable for small-scale planting because of its relatively fast growth rate and lucrative returns. It is relatively simple to cultivate in regions with appropriate ecological conditions for its growth, such as the drier areas of Panama.
Teak is one of the best-researched of the tropical forest species. It has been the subject of comprehensive research programs in India, Indonesia, Thailand, and Myanmar for more than 50 years. This research has identified elite genetic material for wide-scale planting and silvicultural practices that optimize production of high-grade timber. Since the demand for teak is increasing and the supply from natural forests is dwindling, investment in a teak plantation can provide an excellent long-term return on investment.
An investment in a Panamanian teak plantation offers tax advantages as well as income from the sale of the mature timber. It is a green investment, providing new jobs in rural areas and long-lasting environmental benefits such as tropical wood binding of carbon dioxide.
Panama Forestry’s Teak Visa Program
Panama Forestry’s teak visa program offers expert management of your timber investment at a very competitive price. We know Panama and we know teak. As the country’s investor residency visa requirements have changed over time, we have tailored our programs to meet investor needs.
Our current visa package offers 5 hectares of planted teak, titled in the investor’s name, for $80,000. Our 25-year plantation management contract is structured to provide maximum return on the timber investment, offering a sound investment in addition to assistance in obtaining a permanent Panamanian residency visa.
We invite you to compare Panama Forestry’s investment visa package to those of our competitors. Quite simply, it’s the best you’ll find.
For more information on our current residency visa investment package opportunities, contact Jeff@Panamaforestry.com.