The program offers significant benefits to investors, The visa grants you long-term stability in Panama. Plus, Panama’s tax system is friendly to investors like you.The program is designed to promote sustainable development and environmental conservation in Panama by incentivizing investment in reforestation projects.
Eligibility and Investment Options
The Panama Reforestation Residency program offers permanent residency to those who invest at least $100,000 USD to $360,000 USD in an approved reforestation project.
Reforestation investment of $360,000 USD
You should consider that $10,000 out of the total investment of $360,000 USD will be considered as maintenance and management expenses for your Panama reforestation projects. This investment needs to be upheld for a minimum of 5 years following the acquisition of permanent residency.
Reforestation investment of $100,000 USD
If your investment in reforestation activities is around $100,000, you should consider that the investment is utilized as follows: $90,000 is allocated for the purchase of land to carry out these activities, and $10,000 is designated for maintenance and management expenses for reforestation in Panama over an 8-year period.
This 8-year timeframe encompasses the duration of the processes involved in obtaining temporary residence for 6 months, provisional residence permit for 2 years, and ultimately permanent residence.
Panama Reforestation Incentives Based On Law 24
- Once permanent residency is approved, the investor must hold the investment in the reforestation project for at least 5 years.
- During these 5 years, the permanent resident must submit yearly documentation to the immigration office, proving continued ownership of the reforestation project.
To include dependents, you must add an investment of B/. 2,000.00 for each dependent, which can be substantiated through a local bank reference.The application process is straightforward and requires necessary documents.
Documentation requirements for the Panama reforestation investor visa.
Before showing you the documents you need to apply for this visa, it’s important to note that you cannot undertake this process on your own. Obtaining certain documents may require time, money, and legal services from a Panamanian lawyer.
- Power of Attorney and Application (notarized).
- Three (3) photographs.
- Duly certified copy of the passport (Notary or corresponding authority).
- Certificate of Criminal Record.
- Health Certificate.
- Certified Check for B/.250.00 payable to the National Treasury.
- Certified Check for B/.800.00 payable to the National Immigration Service.
- Personal History Affidavit Form.
- Certificate from the Public Registry confirming the existence of the company.
- For legal entities, a sworn statement from the secretary or treasurer of the company (cannot be provided by the applicant) is required. This statement must confirm the ownership of the nominative shares issued in favor of the foreign applicant, duly released and paid, and the amount of the share capital.
- Certification from the authorized public accountant (CPA) detailing the total amount directly invested in reforestation activities and confirming the investor’s ownership of the capital. (The accountant must attach a copy of their ID and professional certification).
- Authenticated copy of the share certificate issued to forest investors or a contract of business relationship with the reforestation company holding the share certificate, duly authenticated.
- Copy of the resolution issued by the Ministry of Environment, from the natural or legal person’s forest registration.
- Certificate of the company’s existence issued by the Public Registry of Panama, outlining its activities.
- Property certificate issued by the Public Registry of Panama.
- Evidence of a direct investment in reforestation activities, amounting to a minimum of eighty thousand balboas (B/. 80,000.00), which can be demonstrated with documents such as:
- Bank certification of funds or payment (mandatory).
- Audited Financial Statements.
- Commercial invoices for purchases and sales.
- Documents or receipts for the importation or purchase of inputs or equipment.
The documents you submit must be properly internationally authenticated with the relevant authorities in your country. This will help you avoid rejection of your application due to failure to meet the requirements of the National Immigration Service or the Ministry of Environment of the Republic of Panama.
Why Invest in Reforestation in Panama?
The Panama Reforestation Investor Visa program offers several options for investors interested in contributing to reforestation efforts in Panama. Let’s explore the benefits of this visa:
- Reforestation Investment returns : Reforestation provides a high return, medium to long-term investment suitable for retirement planning or education funding.
- Reforestation projects: The preservation of Panama Teak forests plays a crucial role in safeguarding our environment. Panama Teak Wood, known for its high quality, contributes to climate preservation, air purification, and the restoration of global water resources.
- Legal Residency and Citizenship: The Panamanian government rewards investors with legal residency, leading to an optional eventual Panama citizenship with a passport
Application Process for Reforestation Visa
If you have already made the decision to start a reforestation project in Panama and wish to obtain your residency in Panama, here are the estimated timelines you should consider:
Ministry of the Environment
To obtain the forest registration in Panama, required for both individuals and legal entities applying for temporary residence permits, you need to follow these steps:
- Complete the MIAMBIENTE form: This form will be provided by the Ministry of Environment. Make sure to fill it out accurately with the required information.
- Pay administrative fees: Make the corresponding payment according to the established rates.
- Documents required:
- For Individuals: Provide a photocopy of your ID card.
- For Legal Entities: Obtain a certification of existence, validity, and legal representation issued by the Public Registry.
- Inspection fee payment: Make the necessary payment for the inspection.
This procedure is essential for all individuals or legal entities engaged in forestry activities. The goal is to keep forestry statistics updated and provide technical assistance to enhance product quality.
Servicio Nacional de Migration
Temporary Residence Permit (6 months): After arriving in the country and submitting your application to the National Immigration Service, the issuance of this temporary residence ID typically takes no more than 1-2 weeks.
Provisional Residency Permit (2 years): Likely before the end of the initial 6 months, the National Immigration Service will process your application and grant you a second ID known as a provisional residency permit valid for two years.
Permanent Residency: As your temporary residence permit approaches expiration, you have the option to choose permanent residency. However, you must continue to maintain your investments for an additional 5 years to comply with the Panama Reforestation Incentives based on Law 24.
Recommended Reforestation Project
For a recommended reforestation project in Panama, investors can explore two primary types: hardwood plantations and tropical fruit farming.
- Hardwood Plantations: Investing in hardwood plantations, particularly Teak, provides a lucrative option. Teak wood is known for its quality, durability, and high demand in various industries. The Panama Teak industry ensures a sustainable supply of this valuable hardwood.
- Tropical Fruit Farming: Another option is tropical fruit farming, leveraging Panama’s favorable climate. This type of project not only contributes to the reforestation efforts but also taps into the growing global demand for exotic fruits.
Panama’s Teak industry, with its extensive array of associated keywords, enhances the investment’s value and potential. It’s important to note that while Panama boasts rich biodiversity and tropical ecosystems, not the entire country is covered by rainforests, providing diverse investment landscapes for environmentally conscious investors.