If you've ever considered residence in Panama, I've discovered an opportunity that you should carefully consider. Basically, it provides a $28,000 rebate in solid gold when you apply for a Panamanian "reforestation visa."
That's the good news. The bad news is that only THREE of these visas are still available with the rebate. The rest have already been sold. So if you're interested, please let me know immediately so that I can put you in touch with my friends in Panama who are making this offer.
(If you recall receiving this email from me a couple months ago, you're not dreaming…but three more slots for this program are now available.)
But first, let me tell you why Panama is one of my favorite countries for tax-advantaged residence.
- Tax-free. You can live in Panama essentially tax-free since the country taxes only local income. There's no Panamanian tax on income you generate outside the country. (Keep in mind that if you're a U.S. citizen, however, you still need to pay U.S. tax on this income.)
- Citizenship and passport. With a reforestation visa, after five years legal residence in Panama, you're eligible to apply for Panamanian citizenship and passport. However, because the process moves slowly and is somewhat bureaucratic, it often takes 10 years to actually receive the passport. However, you don't even need to live in Panama continuously during this period, although you need to make several visits to the country to deal with immigration matters. The Panamanian passport gives you access without a visa or with visa-on-arrival to over 120 countries. The list includes all members of the European Union, all but one country in South America (Venezuela), but not the United States or Canada.
- First-class amenities. Panama is no third-world backwater, either. It's the largest financial center in Central America and its larger cities have first-class living accommodations, telecommunications services, and health care. Your bill for a visit to a U.S.-accredited hospital in Panama will be about half the cost of comparable service in the United States.
- Fiscally sound. In contrast to the United States and EU countries, credit agencies have actually boosted Panama's ratings in recent years.
The least expensive way to qualify for a Panama residence visa eligible for eventual citizenship and passport is to obtain reforestation visas for yourself, your spouse, and your dependent children. To obtain this type of visa, you purchase a minimum of 2.5 hectares (6.15 acres) in fully-titled land with two-year-old teak trees planted on it. About a dozen qualifying teak plantations now operate in Panama. Each one has a slightly different arrangement, but they all basically require that you pay $80,000 for the 2.5 hectares, plus an additional $2,000 for each dependent.
In addition, you must pay around $3,000 in legal fees for the primary applicant and $2,000 each for your spouse and dependent children. (Children between the ages of 18 and 25 that are studying, single, and childless can also be considered dependents.) There's also an annual fee around $400 to maintain the status of the Panamanian corporation formed to hold your interest in the plantation. (U.S. citizens need to file a form annually with the IRS disclosing their interest in this corporation.)
Finally, you sign a contract for the plantation to manage your property to maximize investment returns. Generally, there is no out-of-pocket cost for this service. The plantation deducts its management and maintenance fees from the proceeds of thinning the trees beginning 10 years or more after you make your investment. It's up to you to decide when to cash out, but at today's teak prices, a 2.5 hectare parcel of teak with 25-year-old trees has a market value exceeding $200,000—tax free in Panama. (Again, U.S. citizens must report and pay tax on any income beyond their "basis" in this investment.)
Naturally, forestry investments face risks such as fire, and it's impossible to predict the demand for teak in 23 years (the trees are already two years old). Nonetheless, it's important to remember that this is an investment, not a contribution. You (or your heirs) should eventually be able to cash out at a substantial profit.
Until now, I've never promoted a particular offer for the reforestation visa, because all of them seemed roughly equivalent. However, a colleague in Panama recently informed me of a partnership his company has created with a teak plantation that gives you and your spouse the requisite 2.5 hectares of titled land and its crop of two-year-old teak trees for $82,000. Add $2,000 for each dependent child, plus the additional costs I've already outlined. The kicker is that in addition to residence visas for both of you, you'll also receive a $28,000 rebate in physical gold. Plus, you receive a $1,880 rebate for each dependent added to your application.
The gold consists of sealed one ounce numbered gold bars issued by the Argor Heraeus Mint of Switzerland, or a similar quality bar, each accompanied by certificate of authenticity, much like what you see below. They will be delivered to you in Panama with all customs, transportation, brokers’ fees, taxes, etc. prepaid. You can do what you’d like with the gold. If you want to keep it in Panama, my colleague's company will provide one year of free storage at a private vault in Panama City.
By the way, I have checked this offer out and believe it to be 100% legit. I've known the man promoting it for several years and even paid for a background investigation to make sure he has a clean record. (He does.)
I also have several clients who have Panama reforestation visas. This is an official government-issued visa leading, if you choose, to the right to apply for Panamanian citizenship and passport.
But again, there are only three visas with the gold rebate still available. So if you're interested, please let me know right away at so that I can pass your name on to my friends in Panama who can get started with the application process.
Copyright © 2012 by Mark Nestmann
