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Background and Legal Considerations
Foreigners who have invested their own capital in Panama with the intent of establishing any commercial, financial, industrial, agricultural or reforestation activities producing employment for at least three Panamanian citizens may qualify for residence under the Panamanian investor immigration programme.
Generally, applicants must invest a capital of at least US$ 100,000 in a new company or business or in any company or business already operating in the country with a minimum of three Panamanian employees. The applicants must be directors and officers of the company and the net equity capital of the company may not be less than US$100,000. While this general investor immigration programme is reasonably interesting, a very attractive alternative option exists for direct investments in reforestation projects:
With law No. 24 of November 23rd, 1992, interesting incentives for reforestation activities in the Republic of Panama have been enacted.
Special Provisions for Forestry Investments
Under these provisions, any foreigner who participates in a reforestation project with a minimum investment of only US$ 40,000 is entitled to obtain full immigrant status (residence permit) in the Republic of Panama under the investor immigration programme. This is a special incentive provided by the Panamanian legislation for the development of reforestation projects and is an added incentive to the tax incentives which were established specially for international investors. Also, Executive Decree No.89 of June 8th, 1993, furthermore clearly regulates that reforestation projects will not be subject to any income tax on any profits from the wood produced. Of course specific tax advice should be sought in each individual case to ensure all tax consequences – also in one’s home country – are properly examined. Likewise, professional investment advice should be sought before making any investment in any form.
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In the forestry register
(registro forestal) of the Autoridad
Nacional del Ambiente, ANAM (the National Environmental Authority)
there are more than 1,000 reforestation projects registered. Of
those, however, only very few would be of interest to foreign
investors, and even fewer can be considered attractive investments
to be seriously considered. |
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Henley & Partners, through its local office in Panama, has the necessary know-how and overview to advise and assist you with selecting the right reforestation project which will qualify you for immigrant investor status. Henley & Partners however does not give investment advice and recommend all potential investors to seek professional investment advice before making a decision.
Unlike the retiree and
pensionado residence permits, the immigrant investor status qualifies
for Panamanian citizenship and a citizen's passport after five years of
legal residence.
Further Information
Through its office in Panama
City, Henley & Partners provide a complete range of services, including
advice and assistance regarding the different residence programmes and
the acquisition of citizenship after the required numbers of years of
residence. Please contact us
for more information.
