Among the investments in Panama that offer very significant tax incentives, and other fields is reforestation.
Such incentives benefit domestic and foreign investors, as well as to the banks and other financial institutions that loans for the reforestation within the territory of the Republic of Panama.
The reforestation includes “specifically; the action of planting with forest specie, either for commercial, landscape, environmental, tourism, agro-forestry, silvopastorial grazing or any other “; (Art. 1).
The fiscal incentives, and others are included in Law No. 24, of November 23, 1992.
Between these the following stand out:
- The utilities, of natural or juridical persons, derived exclusively from the commercialization of products extracted from forest plantations, at the time of the final cut of the forest plantation, and whose establishment is realized within thirteen (13) years counted from the entry into effect of Law 24, are exempt from payment of income tax whenever the properties are registered in the National Authority of Environment. (Art. 4).
- They are exempts from Import taxes and other duties, the introduction to the country of forest machinery and agricultural equipment, industrial, mobile, material tools, agro-chemical, equipment of forest investigation, seeds, and forest plants and other elements necessary for the exclusive use of the reforestation activities, management and use of forest plantations (Art. 6).
- All foreign investor who realizes a Forest Investment or an Indirect Forest Investment by a sum of forty thousand dollars (US$40,000.00) or more, could apply for a Panama Immigrant Visa as Investor (Art. 10).