Teak for Residency Program
Hardwoods presents Visa Candidates with 17-year-old teak trees that are nearly 70% of the way to a full harvest in year 25. Executive Decree 343, permits nationals from the United States, Canada, and 45 other countries to obtain permanent residency in Panama if they open a business or purchase real estate. The purchase of a teak parcel qualifies Visa Candiates for this program under the purchase of real estate. Candidates are also required to open a local bank account with an opening balance of $5,000 and $2,000 per extra dependent.
Visa Candidates will purchase 2000 square meters (approximately one-quarter acre) of 17-year old teak trees in an established teak plantation for a one-time fee of $35,700. Please note that this fee includes $4,300 for all legal work associated with the application for one main applicant of the permanent residency visa and for a Panama Corporation. It does not include the minimum deposit required in your personal Panama bank account. If you will not be applying for residency, deduct the $4,300 from $35,700 for a total of $31,400 for the teak parcel alone.
The principal benefit to the teak ownership program is very affordable permanent residency in Panama. The residency programs offered by Panama are some of the most appealing in the world, entitling you to many perks and a handful of special benefits.
The Resident’s teak has a harvest value of between $48,677.28+ in logs at today’s teak prices and $78,820.98+ in boards with a modest 5.5% growth in sales prices projected over the next 8 years. While there is a nice return projected for the property investment, most buyers look primarily at the benefits of the residency program in acquiring a teak parcel rather than the specifics of the investment return. However, the management company believes there is the possibility of a significant return and has aligned its interest with those of the parcel owner. For continuing to manage and fund the maintenance of the plantation, Hardwoods retains a 20% management fee interest in the plantation harvest proceeds and has every incentive to maximize the teak value at harvest for the property owner.