reforestation visa- residency by investment · 2019-09-05 · • recently issued and...
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Reforestation Visa- Residency by Investment
General Overview
The Reforestation Visa is a great option for citizens of countries who are not on the Friendly Nations List. With a minimum investment of USD 80 000 in an approved
reforestation project covering a minimum 5 hectares of land, applicants can obtain permanent residency in Panama in 3 years.
Kraemer & Kraemer offers an economic approach to residency by investment programs including the reforestation visa, with attractive buy-back options.
Requirements
Main applicant:
• Valid passport
• Valid second form photo ID (such as a driver’s license)
• 5 photos (approx. 1.5 x 2 inches)
• Recently issued and apostilled/authenticated national criminal background certificate – valid for 6 months
• Power of Attorney, sworn declaration and registration forms (provided by K&K)
• Proof of direct investment in reforestation project of at least USD 80 000 and 5 hectares of land (provided by K&K)
• Evidence of funds wired from abroad for the investment
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Spouse (applying as a dependent):
• Valid passport
• 5 photos (approx. 1.5 x 2 inches)
• Recently issued and apostilled/authenticated national criminal background certificate – valid for 6 months
• Recently issued and apostilled/authenticated marriage certificate – valid for 6 months
• Letter of responsibility from main applicant (provided by K&K)
• Power of Attorney, sworn declaration and registration forms (provided by K&K)
• Additional USD 2000 in Reforestation investment (funds will be credited to your account for yearly maintenance fees)
Child (less than 18 years old):
• Valid passport
• 5 photos (approx. 1.5 x 2 inches)
• Recently issued and apostilled/authenticated birth certificate – valid for 6 months
• Letter of responsibility from main applicant (provided by K&K)
• Power of Attorney, sworn declaration and registration forms (provided by K&K)
• Additional USD 2000 per person in Reforestation investment (funds will be credited to your account for yearly maintenance fees)
Child (18-25 years old):
• Valid passport
• 5 photos (approx. 1.5 x 2 inches)
• Recently issued and apostilled/authenticated national criminal background certificate – valid for 6 months
• Recently issued and apostilled/authenticated birth certificate – valid for 6 months
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• Recently issued and apostilled/authenticated certificate of singleness (or apostilled sworn affidavit signed at a notary) – valid for 6 months
• Proof of full-time studies in university/college as well as providing a list of subjects taken
• Letter of responsibility from main applicant (provided by K&K)
• Power of Attorney, sworn declaration and registration forms (provided by K&K)
• Addition USD 2000 per person in Reforestation investment (funds will be credited to your account for yearly maintenance fees)
Proof of direct investment
• CPA certificate detailing the total investment directly related to reforestation projects and the percentage of such investment attributed to the capital invested by
the applicant
• Authenticated copy of the applicant´s shares certificate
• Latest income tax return, detailing the capital invested in reforestation projects. If such does not exist because the entity has not completed its first fiscal year, then
copy of RUC inscription and copy of annual tax (Tasa Unica) payment
• Entity´s original public registry inscription certificate
• Copy of resolution issued by the National Environmental Authority of Panama
• A sworn declaration from the Treasurer or Secretary, stating the activity of the entity, share percentage of the applicant, and the capital invested for these shares
• Copy of investment certificate issued by MiAmbiente with proof of minimum investment of USD 80 000 in reforestation activities with an additional USD 2 000 per
dependent
o Bank certification of payment
o Financial audited statements
o Invoices of purchases and sales
If you invest directly with Kraemer & Kraemer´s reforestation project, we will provide all required documentation showing proof direct investment.
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Apostille/authentication:
Apostille/authentication is the process of legalizing the document for international use. Clients must apostille their documents at the corresponding governmental authority
or authenticate the documents at the nearest Panamanian Consulate in the country which issued the documents.
Please always contact the office responsible for apostilling/authenticating documents directly for additional information. Appointments or additional steps (such as
notarizing documents) may be required.
Extra Notes:
• If an applicant has any incidents on their national background certificate, a visto bueno needs to be filed before proceeding with the residency process. The visto
bueno is a pre-approval process where immigration will review your police report and determine whether you are eligible to proceed with the residency
application. The fee for this service is USD 400 and immigration typically takes 6-8 weeks to respond with their decision.
• If using a police report from a country other than your country of citizenship, you will need to provide a valid, photo ID issued more than 2 years ago from the
country of residence.
• Please keep in mind that immigration requires all original apostilled documents. Police reports, marriage certificates and birth certificates will not be returned.
• If applying with a child without one of the child´s biological parents, immigration will require a recently issued and apostilled/authenticated permission letter from
the biological parent along with an apostilled/authenticated passport copy.
• Holders of multiple passports must travel to and from Panama with the same passport they will be using for the residency application.
• Border control requires a return or an exit flight. Without proof, entry into Panama may be denied. In some cases, border control may require proof of
accommodation as well as proof of funds to cover your travel expenses.
• All documents must be translated into Spanish by an official Panamanian translator. We provide this service as part of our quote for many languages. However, if
Panama does not have an official translator, you will be responsible for translating your documents into English by an official translator in the country in which the
documents are issued. We will then proceed with the Spanish translations. All documents must be translated into English first and then apostilled with the original
document and translation.
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Process and Timeline
Prior to your trip:
1. Invest in an approved reforestation project (coordinate with K&K from abroad)
2. Obtain required paperwork, keeping in mind the validity of each document
3. Email copies to Kraemer & Kraemer team for review
4. Apostille/authenticate documents
5. Email copies of apostilles to Kraemer & Kraemer team for review
6. Initiate Kraemer & Kraemer services (order can be placed online here)
At least 4 weeks prior to your trip:
1. Kraemer & Kraemer final review for residency paperwork
2. Plan your trip
3. Kraemer & Kraemer will translate documentation and ensure your file is complete and correct
1st Trip to Panama – submitting your application:
1st Business day:
• Meet Kraemer & Kraemer team in the morning
2nd Business day:
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• Register passport at immigration with Kraemer & Kraemer associate in the morning (presence required)
3rd and 4th Business day:
• Kraemer & Kraemer associate will submit your residency application
• Take photo and receive temporary ID valid for 6 months (presence required)
This process can be completed in one business day depending on how busy immigration is. In the case that the photo stage is not completed on the 3rd business day, it will
be completed on the morning of the 4th business day.
5th Business day:
• Kraemer & Kraemer associate will apply for your multi-entry visa (presence not required)
Immigration typically holds onto your passport for 2-3 business days.
7th and 8th Business day:
• Passports are ready for pick up at Kraemer & Kraemer offices.
We highly recommend planning a trip of 10 business days to account for any delays such as the notary office being closed or the government systems being down.
Once you have received the temporary ID, you can travel around Panama domestically and/reside in Panama.
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Waiting period:
Immigration will notify us of approval of your application within 6 months of submission. Once approved, you can plan your second trip to Panama.
2nd Trip to Panama – obtaining your provision resident ID:
• Obtain a 2-year provisional ID at immigration
• Obtain utility bill and apply for RUC (tax ID number)
• Begin filing taxes yearly
Please plan 3-4 business days to complete this step of the process. If you are not residing in Panama, we can assist with obtaining a rental contract and utility bill. The
upfront annual cost for the rental contract is USD 300 and the set up cost for the utility bill is USD 200 and the upfront annual cost is USD 200, thus making a total of USD
700.
Waiting period:
3 months prior to the expiration of the provision ID, we will help you obtain the tax clearance certificate. If you are investing with Kraemer & Kraemer´s Green project, we
will provide updated paperwork with proof of direct investment. If investing with a different reforestation project, you will be responsible for obtaining the updated
paperwork to show proof of direct investment in a reforestation project.
1 month prior to the expiration provision ID, please plan your 3rd trip to Panama.
3rd Trip to Panama – submitting updated residency application:
1st and 2nd Business day:
• Kraemer & Kraemer associate will submit your residency application
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• Take photo and receive temporary ID valid for 6 months (presence required)
This process can be completed in one business day depending on how busy immigration is. In the case that the photo stage is not completed on the 1st business day, it will
be completed on the morning of the 2nd business day.
3rd Business day:
• Kraemer & Kraemer associate will apply for your multi-entry visa (presence not required)
Immigration typically holds onto your passport for 2-3 business days.
5th and 6th Business day:
• Passports are ready for pick up at Kraemer & Kraemer offices.
If you cannot coordinate a trip to Panama to complete this step in the process, Kraemer & Kraemer can resubmit the application on your behalf. We will require your
original passports and temporary IDs (we will arrange to courier your passport back). In this case, you will not receive the temporary ID, however, upon your next trip to
Panama, the permanent ID will be issued.
Waiting period:
Once immigration has reviewed your updated file and confirmed your investment is still in place, they will approve your application 3-6 months. Once approved, you can
plan your fourth trip to Panama to obtain the permanent ID
4th Trip to Panama – obtaining your permanent resident ID:
• Obtain a permanent resident ID at immigration
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Please plan 2-3 business days.
During this entire process you can travel back and forth into Panama, granted you have obtained the multi-entry visas. You can also reside in Panama for the duration of the
process.
Costs and Fees
Main applicant Dependent (over
the age of 12) Dependent (under
the age of 12) Minimum Investment 80000 2000 2000
Evidence of Forestry Investment 800 - -
Legal Fees 3000 1000 1000
Notary and translation expenses *200 *200 *200
Government fees 1400 1400 600
Total 85400 4600 3800
*Translations may vary depending on the language.
Government fees include:
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• USD 800 repatriation fee
• USD 250 application fee
• USD 50 temporary IDs (2 required per person)
• USD 50 multi-entry visa (2 required per person)
• USD 50 provisional ID
• USD 100 permanent ID
Fee schedule:
1st Payment: Investment into reforestation project
2nd Payment: 50% retainer of legal fees required to engage Kraemer & Kraemer´s services
3rd Payment: Notary and translation expenses and government fees will be due on your first trip
4th Payment: Remaining 50% of legal fee due on final trip when finalizing the residency process
Kraemer & Kraemer Green Project
Why Invest in a Reforestation Project?
With the destruction of millions of acres of rain forests each year, reforestation projects offer opportunities to invest in green projects that not only protects rain forests
including their wildlife and plants but also helps with climate preservation and air purification.
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Sustainable sourcing is vital to preserving our natural resources and creating positive, social impacts on our rain forests.
Reforestation projects involve efforts to create a cycle of replanting and harvesting trees.
Capital gains on Panamanian reforestation projects are exempt from tax as well as property taxes for the duration of the reforestation project.
Why Invest in Teak?
Teak is known for its durability. It is resistant to decay and forest fires, repels insects and can withstand weather changes. Due to the hardwood´s elasticity and solid fiber
making, teak has become the number one choice of hardwood.
Due to teak´s increasing popularity, demand has significantly increased while supply is still withering. Teak has a history of being a strong investment and trends continue to
grow and strengthen.
Teak trees are thinned at year 10 and 15 and at year 25, the trees mature and are cut down and are then sold.
Why Invest in K&K Green Project?
Kraemer & Kraemer offers a full-service investment with a peace of mind that your investment is being properly managed as Kraemer & Kraemer partners with experienced
forestry engineers to secure the best results. We are with you every step of the way from the initial investment to securing your residency in Panama.
Whether you are looking to reap the benefits of your teak investment or are looking for a short-term invest to obtain your residency, we have the solution for you.
Maintenance Schedule
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Maintenance Fee Schedule Per Hectare
Year
9 Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16
Year 17
Year 18
Year 19
Year 20
Year 21
Year 22
Year 23
Year 24
Year 25
TOTAL
1st Cleaning 110 110 110 110 110 110 110 110 110 110 1100
2nd Cleaning 110 110 220
3rd Cleaning 0
4th Cleaning 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 2240
Harvest Management
Pest Control 12.5 12.5 12.5 12.5 12.5 12.5 12.5 6.25 6.25 6.25 6.25 6.25 6.3 6.25 6.25 6.25 143.8
Pruning 5 120 120 245
Thinning 200 200 400
Harvest 6500 6500
Administrative Costs
Technical Assistance 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 160 200 2760
Administrative Costs 50 110 50 50 50 50 110 50 50 50 50 50 50 50 50 50 110 1030
Transportation Costs 60 60 60 60 60 60 50 50 50 50 50 50 50 50 50 50 50 910
Supplies 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 102
Security 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 850
TOTALS 704 1079 588.5 589 588.5 589 958.5 462.3 462 572 462.3 462 572 462.3 462 572 6916 16501
Fees are priced in USD.
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Option 1: Guaranteed Buy-back
A minimum investment of USD 80 000 covering at least 5 hectares of land in an approved reforestation project is required to qualify for the residency visa.
After a 5 year period, Kraemer & Kraemer offers a buy-back option of 50% on the purchase price and maintenance cost.
Projected Net Income Per Hectare Year 9 Year 10 Year 11 Year 12 Year 13 TOTAL
Gross Income $150.00 $150.00
Expenses $703.50 $1,078.50 $588.50 $588.50 $588.50 $3,547.50
Net Income (703.50) (928.50) (588.50) (588.50) (588.50) (3,397.50)
Projected Net Income per USD 80 000 Investment
Year 9 Year 10 Year 11 Year 12 Year 13 TOTAL
Gross Income $ - $750.00 $ - $ - $ - $750.00
Expenses $3,517.50 $5,392.50 $2,942.50 $2,942.50 $2,942.50 $17,737.50
Net Income ($3,517.50) ($4,642.50) ($2,942.50) ($2,942.50) ($2,942.50) ($16,987.50)
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Guaranteed Buy-back Proposal
Initial Investment $80,000.00
Net Expense $16,987.50
Total $96,987.50
Buy Back Amount of 50% on Purchase price and management cost $48,493.75
Option 2: Long-term Investment
Projected Net Income Per Hectare
Year 9 Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25
Total
Gross Income
150 500 25000 25650
Expenses 703.5 1078.5 588.5 588.5 588.5 588.5 958.5 462.25 462.25 572.25 462.25 462.25 572.25 462.25 462.25 572.25 6916 16500.75
Net Income -703.5 -928.5 -588.5 -588.5 -588.5 -588.5 -458.5 -462.25 -462.25 -572.25 -462.25 -462.25 -572.25 -462.25 -462.25 -572.25 18084 $9,149.25
Projected Net Income per USD 80 000 Investment (5 Hectares)
Year 9 Year 10
Year 11
Year 12
Year 13
Year 14
Year 15
Year 16 Year 17 Year 18 Year 19 Year 20 Year 21 Year 22 Year 23 Year 24 Year 25
Total
Gross Income
0 750 0 0 0 0 2500 0 0 0 0 0 0 0 0 0 125000 128250
Expenses 3517.5 5392.5 2942.5 2942.5 2942.5 2942.5 4792.5 2311.25 2311.25 2861.25 2311.25 2311.25 2861.25 2311.25 2311.25 2861.25 34580 82503.75
Net Income -
3517.5 -
4642.5 -
2942.5 -
2942.5 -
2942.5 -
2942.5 -
2292.5 -
2311.25 -
2311.25 -
2861.25 -
2311.25 -
2311.25 -
2861.25 -
2311.25 -
2311.25 -
2861.25 90420 $45,746.25
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Government Dress Code
Please pack pants, long skirts, closed toe shoes and non-shoulder baring shirts for immigration. Government offices have a strict dress code and you may be turned away
for wearing shorts, tank tops, skirts or dresses shorter than knee length, flip flops, sandals, jeans with rips, off-the-shoulder tops, or athletic wear.
The immigration office also has a reputation for being chilly. We recommend bringing a sweater or jacket just in case.
Traveling With Children
While traveling with minors, please ensure your keep their apostilled birth certificates on hand for border control, both in the country of departure as well as for your
arrival in Panama. Once in Panama, we will provide you with a copy of the birth certificate (immigration will keep the original) as well as the translation of the birth
certificate for your departure out of Panama.
If traveling with minors without their biological parents, please travel with copies of a recently issued and apostilled/authenticated permission letter from the biological
parent along with the parent´s apostilled/authenticated passport copy.
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Tips For Your Upcoming Trip To Panama
• Communication is key to successfully submitting your residency application. Though many restaurants and cafes offer free Wi-Fi, we recommend obtaining a
SIM card and purchasing a prepaid plan. SIM cards typically cost USD 2 and plans can range from USD 5 – USD 30 depending on the length of your plan. Cell
services providers include Digicel, Movil and Claro.
• Downloading a few resources on your phone can make your trip much easier. We recommend:
o Google Translate - for translations, essential for communicating with locals
o WhatsApp - this is the most popular means of communication in Panama.
o Google Maps - you can find almost everything here along with useful directions for walking or driving to your desired location
o Degusta - search restaurants by various filters, reviews, and special promotions
o Cabify & Uber - for reliable, safe and affordable transport in the city
o Encuentra24 - for real estate purchases, rentals and vehicles
Check out some of our top picks for affordable accommodation in Panama here.
Driving In Panama
Tourists are legally able to legally drive in Panama for up to 90 days with the current license. However, once you have submitted your residency application and obtain the
temporary resident ID, you will be required to obtain a Panamanian license to legally drive in Panama.
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Requirements to obtain a Panamanian driver’s license:
• Original and copy of valid license
o Copy of license must be authenticated at the embassy of the country which issued the license (many embassies require an appointment to do so)
o After authentication, the copy must then be certified t the Ministry of Foreign Affairs located at Sun Tower Plaza branch in Panama City (typically takes a
few hours)
• Original and copy of resident card
• Original and copy of passport
• Blood test report
o Must be done at a laboratory in Panama
o If current license includes your blood type information, this step will not be necessary
Once you have gathered the required documentation, you can apply for the driver’s license at Sertracen (such as the one located on Av. Jose Agustin Arango in Panama
City). You will then have to pass a visual and auditory test. The fee for the driver´s license is USD 40.
If you are applying for the driver’s license, the license will have the same validity of your temporary ID card. Once your residency has been finalized, you can update your
drivers license.
Please note: if you obtain a temporary residency card and drive in Panama without a Panamanian license, you may risk getting fined and having the car towed if pulled over
by the police.
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Benefits of Obtaining Residency In Panama
Panama is the fastest growing economy in the Americas and is an international hub for business and living. The territorial tax system attracts expats from around the world
seeking a tax haven as well as international entrepreneurs eager to capitalize on these opportunities.
Residents have found the comfort, safety and warm climate of Panama irresistible and with Panama´s open borders approach, cities and towns alike are bursting with
multicultural vibes. There´s much to do and explore, from beaches and mountains to rainforests and cosmopolitan cities, whatever your desire is, Panama is sure to have it.
Maintaining Residency
Applicants of Friendly Nations Visa are required to maintain residency by visiting Panama every 2 years for a couple of days. If residency is not maintained, immigration
holds the right to suspend your residency.
Once residency has been suspended, you will have to resubmit your file along with updated documents for review including proof of direct investment into the
reforestation project. Immigration will then determine whether they will reinstate your residency.
If residency in not maintained for a period of 6 years or more, your residency will be revoked.
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E-Cedula
Cedulas are nationally issued IDs which are issued to Panamanian citizens. Foreigners with permanent residency can obtain a cedula, however, the cedula will have an “E”
located before the cedula number. The E stands for extranjero which means foreigner.
The cedula is an optional ID you can obtain once residency has been finalized. This is not required to obtain but it is recommended as the cedula is more nationally
recognized and respected than the permanent resident ID card.
Once residency has been approved, immigration will issue a cedula letter (typically 30-45 days after residency has been finalized). With the cedula letter along with two
copies of both your passports and permanent resident ID card, you can head over to the Tribunal Electoral in Panama City to apply for the Cedula.
This process typically takes a few hours and you will have to come pick up your cedula two weeks later or request the cedula to be sent to one of the Tribunal Electoral´s office nationwide for pickup.
You do not need a lawyer for this process, but we can assist if needed. Our fee for this process is $200 per e-cedula.
Please note: the cedula fee is not part of the residency fee quoted, however, it does include the cedula letter.
Working In Panama
As Applicants of the reforestation visa are obtaining permanent residency in Panama through an investment program, applicants are not immediately eligible to apply for a
work permit. The only exception is online work and supervising your own business.
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Once applicants have been maintained residency for 10 years or obtained citizenship, they can then legally work in Panama.
Citizenship
Permanent residents are eligible to apply for citizenship after maintaining residency in Panama for 5 years.
The process includes an in-person interview as well as a proficiency test in Spanish which covers Panama´s politics, geography and history. This test can only be taken once,
and if failed, you will then not be eligible to proceed with the citizenship process.
Once you have successfully completed the interview and test, the file will then be sent to the corresponding´s office for final approval. Citizenship is up to the discretion of
the President and is not guaranteed. In the past, the process typically takes 1-5 years to complete.
Kraemer & Kraemer Services
Kraemer & Kraemer is equipped with a team of attorneys and legal associates with a vast knowledge of the legal system in Panama. We specialize and offer legal services in
business, real estate, tax and immigration law.
Kraemer & Kraemer strives to be the premier choice of law firms in Panama and we pride ourselves in offering customer service that exceeds our clients´ expectations. We
have 12 years of experience, trust and excellence. Checkout our reviews on Lawyers.com.
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Kraemer & Kraemer Referrals
Kraemer & Kraemer has created relations with professionals of different areas through the years whom we feel confident to rec ommend.
Accounting: Ariadna Madrid via [email protected]
Appraiser: Johana Villalba via [email protected]
Customs Broker: Heidi Kam via [email protected]
Driver/tour guide: Marc Vargas via [email protected]
Insurance broker: Priscilla Mcleod via [email protected]
Translator (English/Spanish): Edgardo Espinosa via [email protected]