Reforestation, Panama Reforestation, Teak Plantation
Investments in forest plantations are among the safest. There are organizations that manage pension funds to invest in long-term forestry business. Interest in investing in forest plantations is that as they grow, this growth gain value and gain value implicit in improving the quality of the wood over the years. An alternative to Panama can be reforestation of 100 hectares within five years at a rate of 20,000 ha / year with the initial investment of $ 100 million (per dollar invested are recovered five). Funds may be the Social Security Trust Fund. This investment and generate significant revenue (for retirement) would generate thousands of jobs in depressed rural areas and recover degraded lands. This new forest mass would help agriculture, ecotourism, energy and health
.
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$60,000.00 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.
The plan known as “Agenda for Reducing Carbon Emissions due to Deforestation and Forest Degradation" established by the United Nations will give support to countries including REED in their new programs. Panama is one of the countries along with Paraguay, where there will be a pilot plan to validate and encourage the mechanisms to set the platform for economic growth to continue, but protecting the environment. REDD is an initiative to stop cutting of trees in order to stop polluting emissions from reaching the atmosphere.
In 2000, Panama almost 45% HAD forest cover, down from 70% about in 1947, making a national REDD Programme imperative for the future of STI forests. At present, Some of the main drivers of deforestation are logging and Degradation Operations, Infrastructure Development and cattle ranching. The Overall Objective of the UN-REDD Programme in Panama National is to assist the Government of Panama in Developing an Effective REDD regime. In October 2009, U.S. $ 5.3 million Approved by the WAS UN-REDD Programme Policy Board for Panama's National Programme.
Currently, preliminary studies have been made ​​of the causes of deforestation with support from GTZ as well as determination of the preliminary plan to strengthen the National Coordinator of Indigenous Peoples of Panama (COONAPIP)
As a measure to mitigate the effects from the Canal’s expansion project, the Panama Canal Authority (ACP), has pledged to reforest hectares, doubling the number of those which will be used for the project. In addition, the planting of seedlings will not be limited to the Canal surrounding areas, but also will be extended to other areas of country. The team environmental management of the ACP, which has been recognized by international ISO standards, conducts tours to project sites in order to verify compliance GUPCSA giving to environmental requirements. Weekly inspections are conducted jointly between the ACP and GUPCSA, this practice is given as to monitor the most important environmental aspects.
During March, the independent environmental consultant Environmental Resources Management Panama, S. A. (ERM), inspected the worksite of the projects and areas under the reforestation program. Is currently preparing an inventory of the fauna of the area of Gatun.
Plant and maintain approximately 125,000 saplings in 50 hectares of mangrove is part of measures to maintain the (ACP) project of ecological compensation in the third set of locks. The work is performed at the mouth of the Chiriqui Viejo.
Within reforestation nursery was built and planted seedlings of red mangrove, white mangrove and neotropical. Similarly been planted 28 hectares of this variety of plants, reaching a 33% advance in the contract.
A total of 24 people between men and women from communities like Bacchus, Chiriqui Viejo and Teak have collaborated in various activities, according to data compiled by the report.
The National Environmental Authority (ANAM) collected by means ticket sales to visit protected areas of the country a sum of U.S. $ 312,000, which represents only about 5.2% of the total budget managed for conservation, which is about $ 6 million a year.
The National System of Protected Areas, administered by ANAM, is the institutional framework governing operation of such areas, which totalize 85, where 32% of them are terrestrial and 4% marine, being inhabited by one million people.
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.
Since last August 26, 2008, took effect and was implemented in the Republic of Panama, Decree Law No. 3 of February 22, 2008 and its Regulations Executive Decree No. 320 of August 8, 2008. Prior to the implementation of the Act, there was the Forestry Investor Visa Microenterprise. Which required a minimum investment of B/.60,000.00, with the implementation of the new law, this has changed now found two Forestry Investor Visa, a temporal character and one that gives the residence permanently.
Forest Investor of a temporary nature. Should be made every two extension requests (2) years to a maximum of six years.
You can request this permission to invest abroad in a personal capacity or through a legal person, the sum of sixty thousand dollars (B/.60,000.00) in reforestation or afforestation, authorized by the National Environmental Authority, the investment must be in a minimum of ten (10) hectares.
In case of legal persons may apply for this permit until two foreigners, provided they can show that each investment made sixty thousand dollars (B/.60,000.00) each. The omission of this requirement shall be grounds for cancellation of the application and the obligation to leave the country.
If bringing dependents investment should be increased to two thousand dollars (B/.2,000.00) for each dependent, which can be justified with reference local bank.
Forest Investment with Permanent Resident status.
You can request this permit foreign-invested personal capacity or through a legal person in reforestation or afforestation authorized by the National Environmental Authority, at least twenty (20) acres and whose minimum investment is eighty thousand dollars (B / 80,000.00).
In case of legal persons may apply for this permit until two foreigners, if they prove that everyone did the minimum investment which the preceding article. The omission of this requirement shall be grounds for cancellation of the application and the obligation to leave the country.
If bringing dependents investment should be increased to two thousand dollars (B/.2,000.00) for each dependent, which can be justified with reference local bank.
In Panama, we have the conditions to achieve better results. We declare the central area of the country as "Forest development pole" and establish a massive reforestation plan involving communities, private companies, NGOs and government. The cost for this Complete Reforestation and Investor Visa Solution is US$ 80,0000 including all of the following:
o 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.
o Incorporation of an IBC or Foundation including all first year fees and charges.
o 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.
o All legal services related to the Investment Agreement and Deed of Transfer of Title of Ownership to the IBC or Foundation.
o Our Reforestation Partner will provide your plantation maintenance services for a period of 25 years, counted from the date of planting the trees.
o 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)
o 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
o 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.
o Pruning, fertilization as required for optimum growth, and optimum profits
o Patrolling the plantation to minimize all risks
o You will receive topographic drawings showing landmarks.
o Title of land.
o 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 3.0% to 5.0%. 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
o Up to 12 % per year on a 25-year term
o From timber sales, seed sales and the sales of Carbon Credits
o Additional increase of value on the land expected
Security and Best Quality
o Real Land Ownership with registration in Panama
o Unique System of Insurance pool. More than 3 % of reforested land will be held back for investors in case of total loss
o Key Person Insurance
o Auditing through renown international auditing firm
o FSC Certification through SmartWood ("well managed")
o Rating as No.1 Forest Investment in Latin America
o Risk minimization through ecological portfolio model (7 mainly native species of fine timber)
o Co operations with renowned Universities such as the Yale School of Forestry and Environmental Studies
o Tree guarantee: committed to replant trees that have died due to disturbed growth
Investment for generations
o Also after the first 25 years cycle - ongoing yields from forestry
o Inheritable and therefore profits for many generations
o Increase in value of the soil quality through sustainable management
o Increase in value through worldwide decrease of utilizable soil
Positive ecological effects
o Biodiversity: Creation of habitat for flora and fauna, also for endangered species
o Protection from erosion of the endangered tropical soi
o Water reservoir and filtering function
o Positive influence on local and global climate, compensation of C02 Emissions
Positive social effects
o Creation of secure long-term employment possibilities in rural regions.
o Prevention of emigration and pauperization.
Profit Scenarios and Cash Flow
The following graphic show profit scenarios from a well known developer for a minimum forest investment of US$60,000.
Profit Scenarios and Cash Flow
The following graphic show profit scenarios for a minimum forest investment of US$40,000.
Profit Scenarios
Bad Case
Mid Case
Good Case
Assumptions
General inflation rate 2% per year No inflation cleared price increase in wood Wood only sold on local market (Panama) No returns from seed sales
No returns from Carbon Credits
-- IRR 6.3%
Assumptions
General inflation rate 2% per year
Inflation cleared price increase on wood of 1%
Wood can be sold nationally and internationally
15% of Teak and Mahogany is of veneer quality
6,000$ from seed sales
Carbon Credits US$/t (total 6,000 US$)
-- IRR 9.6% + appreciation of realty
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$/t (total 10,000 US$)
-- IRR 12.4%
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.
Panama Reforestation Visa offers two options:
1. Panama Reforestation Small Investment Visa $60,000 (Non Permanent Visa)
2. Panama Reforestation Large Investment Visa $80,000 (Permanent Residency Visa)
To apply for Panama Reforestation Small Investment Visa this visa, the following documents will be required:
- All visa applications must be processed by a Panamanian lawyer.
- All overseas documents must be authenticated by a Panamanian Consulate nearest you or by Apostil.
- All applicants must provide a Police Clearance report on a police department’s letterhead, signed by a police official.
- All documents must be issued no more than 4 months prior to submitting the visa application.
- Passports must have at least 3 months remaining before expiration.
- Dependants can be included with both options.
- Applicant and dependants must present themselves in person to the Immigration office for the initial application and subsequent renewals.
Initial Application: Expect to be in Panama for 5 business days. After registering and submitting all documents, immigration will issue a 3-month provisional visa.
Note that immigration request that the applicant for any type of visa, be present physically at the immigration office in Panama, at the time of Visa application.
Panama Immigration will not allow people to visit wearing shorts, t-shirts, or sandals. Immigration will not accept U.S. currency in denominations of $50 or $100.
When the immigration visa is approved plan to visit Panama for two weeks because immigration may hold onto your passport for 5 business days while they insert the official stamps and information in the passport.
ADDITIONAL REQUIREMENTS FOR PANAMA REFORESTATION SMALL INVESTMENT VISA
In addition to the basic requirements established in Article 28 of the Decree Law, the applicant must submit the following documents:
When using a corporation, the following additional requirements must be met:
1. Affidavit by the secretary or treasurer of the corporation (cannot be by the applicant), attesting to the reforestation activities, attesting that the ownership of the nominative shares emitted in favor of the foreign applicant, said shares are free and full, and attesting to the total capital stock;
Certification by the Authorized Public Accountant (CPA) detailing the grand total directly invested in the activity of reforestation and that the capital is from the investor;
3. Authentication of the certificate shares in favor of the reforestation investors;
4. Copies of the tax returns of the business, where the invested capital appears.
5. If a fiscal period has not yet lapsed since the creation of the business, a copy of the inscription in the Unique Registration of the Taxpayer;
6. Copies of the resolution by the National Authority of the Environment certifying the Reforestation Project Registration;
7. Original certification of the inscriptions of the business and the property in the Public Registry;
8. Proof that the investment is directly for reforestation activities with a minimum of sixty thousand dollars ($60,000) proven with documents such as:
a. Bank Certification of the funds transfer or of the payment (obligatory);
b. Audited Financial Status;
c. Commercial bills of buying and selling;
d. Documents proving importation of supplies & equipment;
To request an extension, besides the requirements mentioned in the previous article, the applicant should contribute the following documents:
1. Paz y Salvo of the applicant;
2. Bill or other documents that show disbursements performed in the last year for the project of reforestation, or certification of the business carrying out the plan of maintenance that the contract continues in force.
To apply for Panama Reforestation Large Investment Visa this visa, the following documents will be required:
A minimum $80,000 investment including a minimum purchase of five (5) hectares in a Panama government certified reforestation project, forest plantation, or other authorized project. This is the only Panama Reforestation Visa leading to Permanent Residency and eventual Panama Citizenship. After a term of two (2) years has elapsed, the applicant will be able to opt for permanent residence. The specific requirements are:
“Foreigners that invest with personal title or through legal entity in activities of reforestation or authorized forest plantation, or any other activity authorized by the National Authority of the Environment (ANAM), of at least five (5) hectares and whose minimum investment be Eighty Thousand dollars ($80,000) will be able to request this visa.”
In case of bringing dependents, the investment should be increased by Two Thousand dollars ($2,000) for each dependent, which can be justified with a local banking reference.
ADDITIONAL REQUIREMENTS FOR PANAMA REFORESTATION LARGE INVESTMENT VISA
In addition to the basic requirements established in Article 28 of the Decree Law, the applicant must submit the following documents:
1. In the case of using a legal entity applicants should present: affidavits by the secretary or treasurer of the business (cannot be from the applicants), verifying the activities, the ownership of the nominative shares emitted in favor of the foreign applicant, properly free and full, and the total capital stock;
2. Certification of the Authorized Public Bookkeeper (CPA) that details the grand total invested in a direct way in the activity of reforestation and that the capital is from the applicant. (The bookkeeper should include copy of the decree and of the card in force);
3. Authenticated certificate of shares in favor of the Panama Large Reforestation Investors;
4. Copies of the tax return of the business, where the capital invested appears. If a fiscal period has not yet lapsed since the creation of the business, in its place the copy of the constancy of inscription in the Unique Registration of the taxpayer and copy of the unique rate should be submitted;
5. Copies of the resolution by the National Authority of the Environment of the Certification of the Forest Registration;
6. Original certification of the inscriptions of the business and the property in the Public Registry;
7. Proof that the investment is carried out in direct form in activities of reforestation, by a minimum of Eighty Thousand dollars ($80,000) which can be proven with documents such as:
a. banking Certification of the funds transfer or of the payment (obligatory);
b. Financial Status audited;
c. Commercial bills of buying and selling;
d. Documents of merchandise importing;
To request an extension, besides the requirements mentioned in the previous article, the applicant must submit the following documents:
1. Paz y Salvo of the applicant;
2. Bills or other documents that show disbursements performed in the last year for the project of reforestation, or certification of the business that is carrying out the plan of maintenance and that the contract continues in force.
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
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ADDITIONAL REQUIREMENTS FOR PANAMA REFORESTATION SMALL INVESTMENT VISA