Hardwoods presents Visa Candidates with 16-year-old teak trees that are more than sixty percent 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 1000 square meters (approximately one-quarter acre) of 16-year old teak trees in an established teak plantation for a one-time fee of $200,000. Please note that this fee includes $2,800 for all legal work associated with the application for one main applicant of the permanent residency visa. It does not include the minumum deposit required in your personal Panama bank account.
The Resident’s teak has a harvest value of between $24,000+ in logs at today’s teak prices and $39,000+ in boards with a modest 5.5% growth in sales prices projected over the next 9 years. While there is a nice return projected fo 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 belives 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 maintainence 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.
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