Viewed geographically and geologically Panama forms a bridge between North and South America. Apart from the Panama Canal as one of the most important trade routes in the world for navigation, Panama hosts the second largest Free Trade Zone in the world. The US dollar, the local currency since 1904, guarantees the lowest levels of inflation in the entire hemisphere, inflation that barely exceeds 1.5 %.
With over 60,000 hectares of plantations Panama is among the biggest developers of wood plantations in Central America. On top of this, Panama has special fiscal incentive laws that make available interesting advantages for a plantation owner:
- Investor’s visa with the right to reside in Panama.
- Tax exemptions for processed wood.
- Exemptions on real estate tax
- Exemptions on real estate sales tax when selling a property
- Exemptions on capital gains tax when selling a property
Furthermore Panama also offers incentives in several other sectors, such as agriculture as well as for retirees. The importance of plantations as producers of this essential raw material has increased enormously. Today nearly 5% of all reforested areas are plantations and according to an updated FAO study approximately 60% of the wood production in Latin America and the Caribbean will come from plantations by the year 2020. Latin America and the Caribbean produce about 10% of the worldwide demand for wood.
Tecaland’s teak plantations are located in the provinces of Darien and Panama, to the east of the capital, where existing plantations of some 12 to 14 years of age show extraordinarily good growth conditions.
For more information contact to Panama Lawyers -