Please click the question number to find the relevant answer.
Q1: Is it safe for foreigners to buy property in
Q2: Is it legal for foreigners to buy property in
Q3: What are the procedures to buy real estate in
Q4: What advantage is there to putting a property in the name of a corporation, instead of putting the property in my personal name?
Q5: Is it safe to buy a Panamanian corporation’s shares which hold title to property in
Q6: Are there any government taxes or fees for transferring
Q7: Who normally pays for the property title transfer tax in Panama, the buyer or the seller?
Q8: Who normally pays for the closing costs on Panama real estate transactions, the buyer or the seller?
Q9: What are the average closing costs for
Q10: How long does it normally take to register a property title transfer in the Public Registry of
Q11: How long does it normally take, from start to finish, to purchase property in
Q12: What are the normal legal fees for property transactions?
Q13: Do purchase contracts for
Q14: What is normally accepted as a down payment for purchasing property in
Q15: If I am a
Q16: Is it legal to buy options on property in
Q17: Are options available on property in
Q18: Do sellers offer owner financing or leases with purchase options in
Q19: Is it legal to block public access to the beach if I own beach front property?
Q20: What is the liability for real estate investors that “flip” (buy & immediately sell) properties?
Q21: Are there property taxes in
Q22: Are there property title transfer taxes in
Q23: Are there capital gains taxes on the purchase and sale of real property in
Q24: Is there a way to minimize capital gains taxes on property sales in
Q25: Is there self-employment tax for real estate investors in
Q26: What would happen if I were to perish (die), and I have real estate in my personal name in
Q27: Are tax lien certificates available in
Q28: If I am a
Q29: If I wanted to buy and flip (sell) my
Q30: Are financing sources readily available for foreigners (non-Panamanians) to get mortgages on property in
Q31: What documentation is normally required for foreigners (non-Panamanians) to obtain financing on property in
Q32: What are the interest rates for financing property in
Q33: Are there any special financing deals available in
Q34: Are there any special financing deals available in
Q35: How much do property appraisals cost in
Q36: How much do home inspections costs in
Q37: Is title insurance available for property in
Q38: Is title insurance required for financing property in
Q39: What does title insurance cost in
Q40: What insurance agents do you recommend in
Q41: Are property foreclosures available in
Q42: What are the procedures for purchasing foreclosed property in
Q43: What is the difference between
Q44: Can Possession Rights property be titled in
Q45: Can Possession Rights property on islands be titled in
Q46: Is it safe to buy Possession Rights property in
Q47: Can I lose my Possession Right in
Q48: What is the cost and time frame for an administrative concession over Possession Rights property in
Q49: What are the procedures to buy a possession right property?
Q50: Is it possible for foreigners to enter in the real estate development business in
Q51: Do I need to be a licensed realtor in
Q52: What license do I need to buy and sell my own properties in
Q53: If I buy a large plot of land, what are the procedures to get residential lot development permits with the Panamanian government?
Q54: What is the time frame and cost to obtain permits for developing residential lots in
Q55: What are the costs for surveying property in
Q56: Is an environmental impact study required for every real estate development?
Q57: What do environmental impact studies cost in
Q58: Are there any tax breaks for developers?
Q59: What incentives does law 8 (tourism incentive law) offer to real estate developers in
Q60: Are there any tax incentives for developers constructing new buildings?
Q61: Can developers put up signs on the property for their development before the respective government permits are issued?
Q62: What permits are required to build and sell condominiums in
Q63: Is the rental market good in
Q64: Are there any taxes on rental income in
Q65: Can you use depreciation as a tax write off for rental property income in
Q66: Other than depreciation, what other expenses can you use as tax write offs for rental property income in
Q67: What is the standard deposit required for lessee’s who rent property in
Q68: To rent my property in Panama, what are the legal procedures?
Q69: Are there any laws that regulate rents in
Q70: If I rent my house, and the lessee does not pay, what are the procedures to get the lessee out of the house?
Q71: Are there any rental management companies in
Q72: What do most rental management companies charge in
Q73: If I wanted to manage my own property, what sources should I use to advertise my property to find a renter?
Q74: What is the procedure to get a construction permits for building a residential home in
Q75: What do residential construction permits cost in
Q76: Is it easy to find reliable contractors in
Q77: What construction contractors do you recommend in
Q78: Is reforestation a good investment?
Q79: Should I buy an already reforested property in a reforestation development, or should I buy an empty cattle farm and reforest the property?
Q80: If I wish to purchase an empty cattle farm, reforest it, and sell off reforested lots to investors, what is the procedure?
A1: Absolutely. Buying property in
A2: Yes, it is legal for foreigners to own titled property in
A3: The first step is to find a
A4: By putting the property in the name of a corporation; (1) the corporate veil protects the property from any attacks from creditors or frivolous lawsuits against your personal name, (2) when you go to sell the property, you can simply sell the corporations shares, saving you a 2% property title transfer tax, and possible Capital Gains Taxes, (3) when you go to sell the property, the buyer benefits because the buy/sell contract does not have to be publicly registered, saving the buyer closing costs, and (4) when you go to sell the property, the buyer benefits from lower property taxes (or possibly no property tax if the registered value is below $30,000), because the registered value does not reflect the actual purchase price.
A5: As long as a proper due diligence investigation is done on the corporation and a proper title search is done on the property that the corporation holds, then it is generally safe to buy property this way in
A6: Yes. The Panamanian government charges a 2% property title transfer tax. The 2% is based on the registered value (the value established in the registered deed of sale). In addition, there are other fees charged by the Public Notary and the Public Registry which total in the range of $200 to $300 for registering a buy/sell contract for the sale of real estate in
A7: It is standard practice in
A8: Generally, each party pays for their own closing costs. For example, the seller pays his/her attorney to review the buy/sell contract, and the buyer pays his/her attorney for drafting the buy/sell contract, doing the title search, title transfer, and escrow services. However, in some cases, buyers and sellers negotiate special terms whereby the buyer or the seller pays all closing costs, so it really depends on the particular negotiation between buyer and seller.
A9: The closing costs vary depending on the particular transaction. For example, if the property is held in the sellers personal name, and the buyer is transferring the property title to a Panamanian corporation (most recommended), then the closing costs would include; (1) the legal property transaction fee of US$600 (includes; title search, buy/sell contract, closing, & property title transfer service), (2) public registry title transfer fees of approx. US$200 to US$300, and (3) incorporation fee of US$1000 to setup the Panama corporation. However, if the property is held by a
A10: In some cases, it can be done within 2 business days, if we pay extra for quick expediting. However, in normal circumstances, it takes from 1 to 3 weeks, depending on the volume of transactions at the Public Registry.
A11: The time frame from start to finish is normally about 6 weeks, however, it really depends on a variety of factors which are dependent initially on the buyer and the seller, the negotiation between buyer and seller, and subsequently dependent on the attorneys and the public registry. Generally, property transactions have the following procedures; (1) The buyer and seller to agree on the price and terms (time frame can vary depending on the negotiation), (2) seller provides our firm with all the due diligence documentation on the property title so we can do the title investigation (time frame depends on the seller), (3) attorneys do initial title search & draft the promise to buy/sell contract (time frame is approx. 1 day assuming we have all the required information from buyer and seller), (4) buyer and seller review the promise to buy/sell contract and agree to set a date to sign (time frame varies depending on the buyer and sellers), (5) buyer sends payment for down payment and legal fees to escrow (time frame depends on the method funds were sent), (6) buyer and seller sign promise to buy/sell contract and down payment is paid to seller from escrow, (7) final title search is completed (time frame is approx. 5 days), (8) buyer sends final payment to escrow (time frame depends on the method funds were sent), (9) attorneys draft final buy/sell contract (time frame is 1 day), (10) closing takes place and buyer/seller sign final buy/sell contract (time frame is 1 day), (11) contract is registered at the Public Registry for title transfer procedure to begin (time frame ranges from 2 to 30 days, depending on the Public Registry’s volume), (12) attorneys receive deed from Public Registry, draft official English translations, and prepare final documents to send to buyer (time frame is approx. 5 business days).
A12:
A13: No. The law does not require a buy/sell contract to be in Spanish to be legally enforceable, however, if there is ever a dispute over the transaction in a court of law in the
A14: Generally, sellers will accept 10% as a down payment upon signing the promise to buy/sell contract. The down payment is shown as “good faith” on behalf of the buyer, so that the seller knows that the buyer is serious. However, the down payment really depends on the particular transaction and the negotiation that takes place. In some cases, sellers will demand as much as 50%, and in other cases, sellers will ask for as little as 5% or less.
A15: Yes. There are several financial companies in the
A16: Yes, it is legal to buy options on property in
A17: Yes, you can buy options on property in
A18: Yes, leases with purchase options are common in
A19: The laws in
A20: The liability for real estate investors in
A21: Property taxes are only levied on properties that have a registered value of US$20,000 or more (registered value is the value stated on the public deed that is registered at the Public Registry). The maximum annual property tax is 2.10% of the registered value of the land (land value under US$20,000.00 is exempt of this particular tax, as per Law # 36 of 1995). Property tax is also levied on the declared value of the building improvements on the land, however, the laws in
A22: Yes, the government of Panama charges 2% of the registered property deed value each time you transfer title from one name to another name. This is why most sophisticated investors utilize
A23: Yes, the law stipulates a 30% capital gains tax on the purchase and sale of real property in
A24: The most common strategy that people use in
A25: There are no “self-employment” taxes for real estate investors in
A26: Yes. If your assets are in your personal name, you could lose half of your properties to the Panamanian government upon your death, thanks to inheritance taxes. For this reason, we recommend that all of our clients put their properties into
A27: This is an area that we are currently researching, however, currently, we have no information about tax lien certificates in
A28: This is a question for a
A29: If you are seeking a local Panamanian buyer, you can advertise in the local newspapers, such as La Prensa, La Critica, and Panama America. If you are seeking a foreign buyer, you might consider print advertising in The Visitor newspaper (a tourist information newspaper), or advertising on our web site.
A30: There are many banks in Panama that offer financing to foreigners (non-Panamanians) to purchase property in Panama, some of these include; HSBC Bank, Scotia Bank, BAC International Bank, Banco Cuzcatlan (Panabank), Banistmo, Banco General, Bank Boston, BBVA Bank, Banco Continental, Credicorp Bank, Multi-credit Bank, Banco Nacional de Panama, and others. However, unless the loan is collateralized by some other liquid asset such as a bank deposit, then most banks have the following limitations for financing property to foreigners; (1) the property must be titled through the Public Registry of Panama, (2) the property must be located in approved regions, normally in urbanized regions or on approved development projects in rural areas, (3) the property must have improvements, such as a house, building, etc. with value, (4) the bank will only finance up to 70% of the purchase price, and (5) the bank will require that the purchase price be no more than the appraised value (appraised by a respected appraisal company).
A31: Most banks in Panama that finance foreigners require the following documentation for the applicant(s) of the loan; (1) complete photocopy of passport (all pages of passport), (2) photocopy of one additional form of ID, such as a drivers license, (3) two original financial reference letters, (4) two original commercial, professional, or personal reference letters, (5) photocopy of utility bill showing physical address, (6) curriculum vitae (personal education/work resume), (7) last 2 years financial statements, (8) last 2 years personal income tax returns, (9) photocopy of property documentation (registered title deed & registered survey), (10) original recent certificate of title deed from the Public Registry, (11) appraisal on the property by an approved appraisal company.
A32: The interest rates are generally right in line with those offered in the USA, however, interest rates really depend on a variety of factors, including; (1) type of property (personal residence, commercial property, investment property, etc.), (2) age of construction (new construction, old construction), (3) term of the loan (short term, long term, etc.), (4) applicants age and status (retired, etc.), and (5) additional collateral offered to the bank as guarantee on the loan.
A33: Yes. If you have obtained a Pensioned Visa (this is a type of resident visa for foreigners who have proven that they receive a pension of at least US$500 per month) in
A34: Yes. There is a law called the “preferential interest law”, which offers special low interest rates, under the following conditions; (1) the buyer must be a first time buyer, (2) the property being purchased must be newly constructed, (3) the unit must be for residential purposes, (4) the amount being financed must be in the range of US$25,000 to US$62,500, after the down payment, (5) the financing cannot be more than 95% of the appraised value, (6) the property must be titled, and (7) the loan must not exceed a 15 year term. This is regulated under Law No. 50 (October 27, 1999), which partially amended Law No. 28 (June 20, 1995) and Cabinet Decree No. 44 (1990), stipulates that the benefits to the lending institutions are as follows: (a) 4% discount (also a tax credit to the financial institution) off the maximum fixed interest rate, which is established by the Superintendent of Banks, will be awarded if the loan value is for more than $25,000.00 but less than $62,500.00, (b) 5% discount (also a tax credit to the financial institution) off the maximum fixed interest rate, will be applicable if the loan is for less than $25,000.00.
A35: Property appraisals in
A36: Home inspections in
A37: Yes, title insurance is offered by reputable international title insurance companies on literally all types of property in
A38: No. Title insurance is not generally required for financing, however, fire insurance is always required for buying property with construction improvements (house, commercial building, etc.).
A39: The cost for title insurance in
A40: We recommend Kevin Bradley, who is a licensed, bonded insurance agent that speaks perfect English, and is part of a large local insurance group. He offers all types of insurance including; health, auto, life, homeowners, fire, travel, disability, etc. For more information, please visit www.panamakevin.com . We also have other insurance agents we work with in the event that you need a second quote, so feel free to contact us for details.
A41: Yes.
A42: The procedure for purchasing foreclosed property in
A43: Panama Titled property is privately owned with a title document which is registered on a public deed through the Public Registry of Panama (like a “fee simple” property title deed in the United States, for example). Panama possession rights property is property owned by the government of Panama, which is occupied by a Panamanian person or entity (Panama corporation or foundation), who has been granted a “right of possession” certification through the respective local government authorities, meaning that the person or entity holding the “possession rights” certification has the right of use of the property.
A44: Yes, in many cases, Possession Rights property can be titled if the property is located on the mainland. Currently, the law prohibits titling of possession rights property on certain island regions (such as Bocas del Toro) or in certain areas on the mainland, such as on native Indian reservations, national parks, country border lines, and a few other specific restricted areas. On the coastline of the mainland, the law allows you to title possession rights starting from 22 meters from the high tide line.
A45: In some regions, such as the
A46: As long as the due diligence is completed and the possession rights certification is verified through the respective government authorities, it is generally safe to buy the possession rights over government property in
A47: In some cases, people have lost their possession rights over government lands when they have abandoned the property for a long period of time. You must understand that Possession Rights are basically the “right of use”, with the understanding that one day you will acquire the land from the government by applying for a property title (or you will apply for an administrative concession). If you abandon possession rights land, and someone else begins using the land, then they can obtain a possession right certification showing that they are using and occupying the land, giving them the right to then apply for a property title (if permitted in that particular region). We always recommend that when our clients buy possession rights lands, they should always; (1) fence the land, (2) farm or build on the land (such as a house, etc.), (3) maintain the land (cut the grass, etc.), and (4) have someone watching over the land (such as a care taker). We also recommend that, if the land is on an island in a region where titling is not permitted, then you should apply for an administrative concession over the possession rights land, which is a contract with the government that guarantees you the pacific right of use of the land for a 20 year term, which is renewable for another 20 years (similar to a land lease). The administrative concession gives you the security of a property title, in that even if you abandon the land for a long period of time, the government still grants you the right to remove intruders from the land.
A48: The cost and time frame for an administrative concession over possession rights property in
A49: The first step is to find a property you like, and negotiate the price and terms of the sale with the seller (or
A50: Absolutely. The Panamanian government welcomes foreigners to develop real estate in
A51: No. A realtors license is only required if you wish to sell property that belongs to other people and earn sales commissions on the sale of the property.
A52: No license is required to buy and sell your own properties in
A53: The first step is to get the property surveyed topographically by a Panamanian licensed topographer / engineer. Second, you need a Panamanian licensed architect to design the master plan. Third, you need a Panamanian engineer to prepare the construction drawings. Fourth, you need a Panamanian licensed environmental engineer to prepare an environmental impact study. Fifth, you present the project to and get it approved by the ANAM (Autoridad Nacional del Ambiente), which is the equivalent of the Environmental Enforcement Agency in the
A54: The time frame and cost depends on the size of the project, and the region you are developing in. Some projects can take years to obtain permits and cost upwards of US$50,000, others can take as little as 3 months and cost a few thousand dollars. It really depends on the specifics of the project, where it is located, and the impact it will have on the environment. Usually, once the environmental impact studies are approved by ANAM, the other municipal permits are relatively quick.
A55: Currently, surveyors charge in the range of $200 per lot or per hectare (2.4 acres per hectare) for regular linear surveys (outlining the perimeter, size and borders of the property). Topographical surveyors charge from $150 up to $500 per hectare, depending on the location of the property, condition of the property, and the specifics needed (for example, if you want special information included, such as identifying specific species of trees, depth of rivers, etc.). It is important to hire a surveyor that is reliable, and who will provide accurate data, as well as computerized surveys (usually done using a program called Autocad).
A56: No. According to the law, environmental impact studies are only required under certain conditions, depending on the density and location of the development. The law that regulates this is the following; EXECUTIVE DECREE no. 59 (Of 16 of March of year 2000 "By which Chapter II of Title IV of Law 41 of 1° of 1998 July is regulated, General of Atmosphere of the Republic of Panama".
Article 14. The list of projects that will enter the process of Evaluation of Environmental Impact, according to the anticipated thing in the present Title, is the following. Following the description of each project, appearing between parenthesis and in capital letters, are the abbreviations of the Competent Authority that must receive the Study of Environmental Impact that the above mentioned article talks about:
i. Tourist, residential or commercial infrastructure work development.
Tourist development in protected coastal areas. (IPAT means “Institute of Tourism of Panama”) should receive a copy of the Environmental Impact Study if the development consists of; tourist developments in either a protected or unprotected natural areas, coastal zones, use of the bottom of water (seas, oceans, lakes or rivers), concessions and development fillings with areas of 1 hectare (approximately 2.4 acres) or more, and all the contemplated activities in Law 8 of 14 of June of 1994. (IPAT – tourism incentive law). Residential city (urban) planning developments with gross density (population) of 100 or more inhabitants per hectare, or rural (located outside city limits) developments with a gross density (population) of 250 or more inhabitants. (MIVI means “Ministry of Housing”) should receive copy of the Environmental Impact Study, if there are 5 or more city planning developments of a total of 5 hectares (each hectare is equal to approx. 2.4 acres) or more, with gross density of 250 or more inhabitants per hectare, or 300 or more inhabitants, within urban areas.
A57: Environmental impact studies range in price from as little as $750 to $75,000, depending on the size of the project, impact on the environment, and depending on the environmental engineer you hire for the job. For large developments with high environmental impact, we recommend hiring a top quality environmental engineering firm to handle the environmental impact study, as they have the human resources and organization to prepare a study that will get approved under harsh scrutiny and difficult circumstances. For smaller, non-impacting projects, an individual environmental engineer may suffice. However, please note that the environmental impact study is detrimental to the permitting of the project, and it is important to hire qualified engineers to prepare your environmental impact study, otherwise, if the project is rejected by ANAM, you may be forced to wait up to 2 years to re-present the project for approval.
A58: Yes. The government of
A59: In June 1994 the government of
“Starting February 1, 1990, income obtained from selling real property, which is reinvested in new constructions, will be exempt from income tax, as long as the cost of the new construction is at least four times applicable in each case. If the cost of the new construction does not exceed the amount mentioned above, the tax payer will be authorized to deduct from the income originally obtained, at least twenty percent (20%)........”. Mortgage Banks also receive tax incentives if they issue loans to buyers of residential units, providing they meet the following criteria: (a) It is the first purchase, (b) It is a residential unit and the amount of the purchase price is between $25,000.00 and $62,500.00, (c) The mortgage's duration can not exceed 15 years. Law No. 50 (October 27, 1999), which partially amended Law No. 28 (June 20, 1995) and Cabinet Decree No. 44 (1990), stipulates that the benefits to the lending institutions are as follows: (a) 4% discount (also a tax credit to the financial institution) off the maximum fixed interest rate, which is established by the Superintendent of Banks, will be awarded if the loan value is for more than $25,000.00 but less than $62,500.00, (b) 5% discount (also a tax credit to the financial institution) off the maximum fixed interest rate, will be applicable if the loan is for less than $25,000.00.
A60: Yes. Since the enactment of Cabinet Decree No. 109 (1970), successive legislation has been passed offering tax benefits to developers. As the nation's largest employment sector, the construction industry received these incentives to help bolster investment in this sector, which would in turn benefit the country's overall employment picture. It has been widely accepted that, as a result of these incentives, purchasers of real property have also benefited. Cabinet Decree No. 44 (1990), and its implementation through Resolutions No. 201-1622 in December 12, 1990, enunciates that the purchaser of residential units, apartments or single homes, built within the time table set forth in the Decree, is exempt from property tax (improvements value) for up to 20 years from when construction began. It is important to note that this exemption does not include property tax on land, but refers to the dollar value on all improvements on new construction. The developer also benefits from an exemption of income tax, if the earnings obtained from the construction are reinvested into new construction projects within two years; certain conditions apply. This tax incentive is similar in nature to those referred to in the
A61: There is a new law that prohibits developers from putting up advertisement signs on the property before permits are issued. However, developers can attend trade shows, offer brochures, and other forms of advertising prior to permitting.
A62: The first step is to buy the property title (the condominium must be on titled property), design the building, and get the environmental impact study approved. Once that is complete, you can apply for the construction permits through the municipal engineering office, and finally proceed with the incorporation of the “PH – Propiedad Horizontal” (this means “Horizontal Property”, which is how Panamanians refer to Vertical property incorporations). The PH incorporation allows you to obtain titles for each of the condominium units. Since the promulgation of Law No. 13 (1993), which amended Cabinet Decree No. 217 (1970), the City of
A63: Yes. However, as with any country or state, the rental market depends on the particular location (city or district). Some locations are great for rentals while others are not. We advise that you consult with us as to the particular property you are wanting to purchase, as well as inform us as to your particular goals, so we can advise accordingly, or if we cannot advise you, we can refer you to a reputable realtor or expert on property in that particular area you are interested in.
A64: Yes, rental income is considered the same as regular local income, and is applicable for taxes in
A65: Yes, you can use depreciation as a tax write off for rental property income in
A66: You can write off expenses such as maintenance, repairs, maid service (cleaning), insurance, etc.
A67: If the lessee is a local Panamanian, then the standard deposit is one months rent, however, if the lessee is a foreigner (non-Panamanian), then the standard deposit is two months rent, although some property owners require up to 3 months deposit.
A68: First, you need to have the lessee sign a rental agreement, which should be registered at the MIVI (Ministerio de Vivienda, or the “Ministry of Housing”). A deposit of one months rent is paid to the MIVI, who holds the deposit as a guarantee to the lessee that the deposit will be returned at the end of the lease, and as a guarantee to the property owner (lessor) that, in the event of damage to the property, the costs for damages can be recovered from the deposit held by the MIVI.
A69: Yes. With the implementation of Law No. 93 (1973), the owner of an apartment and/or office unit, with a monthly rent between $250.00 and $500.00, is not permitted to raise the rent unless first approved by the MIVI (Ministry of Housing). All other leasing contracts, with rents superior to the monthly amounts mentioned above, are free to be governed by private agreements between the parties. This law remains in force today. Law 38 (1984) was later enacted (resulting from private sector criticism surrounding Law No. 93, and the lack of new investment by developers on rental buildings) and with it came deregulation in the leasing market, however, this modification in the law only applies to new rental buildings which commenced construction after November 16th, 1984.
If you rent to people living outside the country however the income is not subject to tax.
A70: There is a procedure called “lanzamiento” which is filed through the court house in
A71: Yes, there are many rental management companies in
A72: If you are simply seeking a renter for your property, most realtors charge a commission equal to the first months rent. However, if you are seeking a full time rental management service including finding a renter, dealing with maintenance issues, collecting rents, keeping accounting records, etc. then real estate management firms normally charge from 10% to 30% of the rental income.
A73: If you are seeking a local Panamanian renter, you can advertise in the local newspapers, such as La Prensa, La Critica, and Panama America. If you are seeking a foreign renter (such as a tourist or retired person seeking a temporary rental while they are checking things out in
A74: The first step is to get your construction plans finished and they must be signed, sealed, and stamped by a Panamanian architect. Second, you take the property documents and construction plans to the municipal engineer in the region you are building for approval.
A75: Costs range depending on the region you are constructing in. The construction permit itself is not costly, however, the taxes (if not exonerated), on the declared value of the construction can be up to 1.5%, depending on the location.
A76: No. Hiring unethical or unreliable contractors is the biggest mistake most people make when they move to
A77: We recommend a variety of contractors, depending on exactly what type of project you wish to do.
A78: That depends on your goals. If your goals are to retire in
A79: That depends on what your objectives are as well as how much effort you wish to put into the reforestation project. With developed reforestation projects, the developer does all the work, you just make the investment. If you are going to develop your own reforestation project, this requires that you first buy the property, then have it reforested, then have it certified, and then maintain the property, which is a lot of work and time involved.
A80: The process is fairly simple. First, you buy the property (it must be titled property). Second, you have the property surveyed and create a design of lots so you can segregate the lots when you sell each lot. Third, you reforest the property (some reforestation developments only reforest a small portion, and continue reforesting as they sell lots). Fourth, you register the reforestation project with the local forestry registry, to get it certified as an official reforestation project. Fifth, you begin selling lots.