Law 24 Incentives: The goal behind Law 24 is simple: to encourage private investment in reforestation to renovate the once-rich natural resource of Panama's tropical forests which were decreasing at the rate of 79,000 hectares (195,130 acres) per year The agency designated with overseeing these projects is ANAM (National Authority of the Environment) and it is ANAM who accepts and registers these projects throughout the country. This is an outline of what is offered:
1). All wood that is harvested within the project (the terms of "harvesting" are spelled out in the management plan provided by the reforestry expert) are completely exonerated from any and all taxes, including export taxes, for 25 years. All capital gains are tax exempt and all direct and indirect investment in the business are 100% deductible from income within Panamá.
2) Equipment, which can include vehicles, heavy equipment, and any other direct investment into the reforestation project are exempt, and can be brought into the country tax-free.
Please Note that the investors visa law is being changed, the visa program no longer exists in any functional way.. They are still finalizing the details of the new visa law. The information on this page is from the old law as the new information is not yet fully available. Teak is still a great investment from a strictly green investment point of view the best company in Panama is http:PanamaTeakForestry.com for timber investments Many of the tax incentive for companies that are invested in teak do still exist and teak is a great sustainable timber investment
3) A reforestation residency visa can be obtained with proof of the project's existence and receipts equal to a $40,000 or $80,000 investment in the project. (This includes the purchase of the land, itself). This visa is particularly attractive for those who want to live in Panamá year 'round and who do not qualify for a "retiree's visa" and want to avoid the lengthy process of obtaining an "investor's visa", Also upon five years consecutive Residency Status in Panama you may apply for naturalization, and will be issued a Panamanian Passport. You do not need to live in Panama during this time.
To obtain the residency reforestation visa the following procedure will need to take place:
- Purchase into a Reforestation project with a value more then US$ 40,000 or more then $80,000.
* -all authentication should be issued by a Panamanian Embassy or Consulate in the country of Residency.
** - Please note that the Panamanian Government reserves the right to reject applicant, even while full filing all requirements, in case of a criminal history. In addition to have above noted requirements, individuals may also be required to visit Panama once. When all documents received, our lawyer will act on your behalf and will take on, all applications and government procedures. You will be updated by us about the process. |
Reforestation Visa
Panama now has two very attractive programs that allow forestry investors apply for legal residency/ immigrant status in Panama. It does not matter which of these two programs you decide to use, they both give the Forestry Investor the right to apply for citizenship after a time. The applicant does not actually need to live in Panama, however they do need to present themselves to immigration authorities in Panama several times during the process.
General Rules for both the Small forestry Investor and the Large Forestry Investor:
* All visa applications must be handled through a Panama Lawyer.
* All overseas documentation presented to the authorities in Panama must be authenticated by the Panama Consulate nearest you or by Apostille with your local secretary of state (can be done through the mail).
* All applicants must present a Police Record, or Police Clearance Report. This document is less complicated if optioned through your Local County Sheriff Dept. It must be presented on a letterhead of the Police dept. It should also be duly signed by an official from that institution. The document does not need to be finger printed.
* All documents must be issued no more than 4 or 5 months prior to visa application.
* Passports must have at least 6 months validity.
* In both cases dependents can be included in the program. That is, the applicant’s children that are under 18 and one spouse. Children between the ages of 18 and 25 years of age that are studying, single and childless can also be considered dependents. In any case, a marriage certificate must be produced, and for your children a birth certificate. Do not bring originals since immigration will keep these, bring updated official transcripts.
* All visa applications in Panama require you to apply for a health certificate in Panama. Your legal council should help you with this prior to the application process.
SMALL FORESTRY INVESTOR VISA
* Minimum investment is US$40,000.00 with an ANAM certified reforestation company.
Application procedure for the Small Forestry Investor Visa is as follows:
Keep in mind that for each step of the application, the applicant and its dependents if they are to be included, will need to present themselves to the immigration authorities in Panama for initial applications and all
consequent renewals that are described below.
Initial application: The applicant will need to be in Panama a minimum of 6 working days. After registering in immigration and presenting all required documentation, immigration will issue a 3-4 month provisional visa. You do not have to return to Panama on the exact expiring date of the provisional card, but should not wait more than 4 months after the expiration date before returning and apply for the one-year immigrant visa card.
One-year immigrant visa card: On the second trip, the applicant will need to be in the country 3 working days. After registering in immigration and presenting all required documentation (None which the applicant has to produce), immigration will issue a one-year Resident Immigrant card.
This one year resident Immigrant card will have to be renewed every year for the next 3 years. Just like the Initial application, the applicant does not have to appear in immigration the exact day the card expires, but should not wait more than 4 months after the expiration date before returning each year for the renewal of this card.
On the fifth year the applicant will apply for the permanent residency card and a cedula. At this same time, the applicant can apply for citizenship and then a Passport.
Note: with small forestry investors visa the legal fees are higher as you need to renew the one-year resident card every year for 5 years. The total legal fees for this are about $1000 to $1,500 each time per person.
LARGE FORESTRY INVESTOR VISA * Minimum investment is US$80,000.00.
Application procedure for the Large Forestry Investor Visa is as follows:
Just like the Small Forestry Investor Visa the applicant and its dependents if they are to be included, will need to present themselves to the immigration authorities in Panama for initial applications and all consequent renewals that are described below. Unlike the Small Forestry Investor, after the one-year immigrant visa card has expired it does not need to be renewed.
Initial application: The applicant will need to be in Panama a minimum of 6 working days. After registering in immigration and presenting all required documentation, immigration will issue a 3-4 month provisional visa. You do not have to return to Panama on the exact expiring date of the provisional card, but should not wait more than 4 months after the expiration date before returning and apply for the one-year immigrant visa card.
One-year immigrant visa card: On the second trip, the applicant will need to be in the country 5 working days. After registering in immigration and presenting all required documentation (None which the applicant has to produce), immigration will issue a one-year Resident Immigrant card.
After the One-year immigrant visa card is expired you will apply for permanent residency card and a cedula. 5 years after initial application the applicant can apply for citizenship and a passport.
With the large investors visa the investment in forestry is more but less investment of time and legal fees. |
