Panama Real Estate Investment

The government of Panama provides many incentives to foreign investors interested in investing in reforested timber plantations, including tax exemption and visas for these investors. Timber is one of the most important natural resources in Panama, and the region is one of the few in the world that can support high quality teak plantations. Teak can be a particularly lucrative investment, and is used in a variety of products including many veneers, and due to its high oil content is a choice wood for boat decks. Due to the relatively fast growth of teak, it is renewable and can make an idea green investment.

Through investing in Panama’s reforested timber program, the investor is given complete tax breaks on any profits from harvested timber, a title for the timber property they own, as well as the option for a residency visa in Panama. Care must be taken though when investing in timber companies, as there have been cases of fraudulent activity in this sector. Thorough due diligence and accredited lawyers are recommended for anyone interested in these types of investments. More information on the reforestation program can be found here.

There are other options for investing in timber in Panama, including investing directly in timber companies. With any of these options, including the reforestation program, it is recommended that investors consider certified forestry practices to maintain and harvest their forests, such as those outlined by the Forest Stewardship Council (FSC). While becoming FSC certified can increase costs upfront, there is a payoff in the end as green certified products can be sold at a much higher market value than products without certification. With the right research and due diligence investing in Panama timber can be both a lucrative investment as well as a green investment, and can help to protect local biodiversity and sequester carbon, all while continuing to turn a profit for the savvy investor.

Teakwood has a high oil content and is ideal for making boat decks

source:

Timber investments in Panama (Nuwireinvestor.com)