- This topic has 1 reply, 8 voices, and was last updated 15 years, 4 months ago by
.
-
Posts
-
Hi,
As “wanna be expats” we are doing our homework and using all the available sources of info including this great forum
While doing the above we stumbled on the big question “how can we live in CR if we do not have a steady income / pension …and we apparently found the answer ” Residency through a Reforestation Program”
I was wondering if anyone used this method and is willing to share his/her experience ?
Based on the info I received from some project managers, it seems to be only a very expensive ( $100.000) way of getting residency/work permit fo you and your familyThanks
StevenI can put you in touch with people that will finance about 50% of your pre-approved reforestaion project purchase.
Its a great way to be able to legally work at any job in Costa Rica. And you only have to spend one day in year inside the country.It also covers your entire family.
You actually own the land and the trees too. If you have the money and want to tie it up for a while its a great way to go. Most likely you will eventually turn a profit. It has to be a pre-approved program though.
An investment in a reforestation program may get you over the residency issue… but then there’s that other problem… making a living to support yourself here in the meanwhile.
Do your homework, the cost of investing in such a program legally and properly may be a lot higher than you think… and it’s an investment that will not generate any current income or return. In fact it will require more ongoing investment to actively manage and maintain your trees through to maturity. Depending on the project you take on the return may be off as many as 15-20 years. So paying your bills, putting a roof over your head, and eating will still be a very big issue!
Good luck…
This program includes forest management. No other investment required. You own the land and the trees. The only other thing you pay is property tax which is very very low. If I wanted to live in Costa Rica and be able to work at any job, I think its the way to go. The other residency catagories do not allow you permanent residency. This program does. And you only have to be here one day a year if you want.
It not only gets you over the residenct issues it gets you PERMANENT RESIDENCY. That a big difference than waiting three years for permanent residency. It makes more sense now that the financial requirements will probally be going up. You put $60 k down and the 40k balance plus accrued interest is paid off when the trees mature and they are sold. In essence its only 60K out of pocket. And you own the land.
I too have looked at the reforestation programs and have been a little skeptical. Is this really a legitimate government endorsed program? It seems that the land is usually located in a remote part of the central valley and has no real accomodation or a maybe a small tico home if you are lucky. I love trees and would be very interested in investing in such. But it also depends on what exactly they want reforested.Some of these websites want you to grow ebony trees but they have to be grown in the right environment and take a while to mature. But this is looked on as a cash crop. Reforestation should be about bringing back the local indigenous forest for the benefit of the environment and the wildlife that depends on that.
In the purest sense of the word I agree. But, regenerating a secondary forest and tree farming are differnt. Tree farming is a cash crop and somewhere between regenerating secondary forest and deforested land. It is not the best or the worst. I would rather see a stand of teak trees than deforested land.
These lands usually have no structures to speak of, are professionally managed, approved by the government and make a profit. Tree farming takes time, so it’s not for everyone. The major benifit as I see it is PERMANENT residency immeadiately. You also stand to make a profit on the trees. As far as the land goes, yes it is remote so you may not be able to sell it soon, but there were many parts of Costa Rica that were once considered remote and because it is such a small nation – how remote is any part of Costa Rica really. It’s not the vast deserts of the US or the Canadian wilderness or the Outback…. so its a viable option for some. Especially if you finance it. I only know of one program that is preapproved by the goverment.
Scurrie: You should be a little skeptical about the reforestation program. This program allows you to become an “INVERSIONISTA” and allows you to live legally in Costa Rica and manage your trees. Nowhere does it say that you can work legally in the country at whatever job you please. Also as an investment maybe you should check out previous programs such as macadamia, teak, jojoba or black pepper to determine if this is really a financially sound program. The track record is not all that great. Don’t become one of those who are born every day.
orcas06, Which program are you talking about? I only know of one PRE-Approved reforestation program, and yes it does grant permanent residency so you can work at any job and you only need to be in the country one day a year if you wish.
I am not talking about the general inversionista residency catagory status as the “program”. I am refering to a preapproved investment in which you become part owner of an existing already planted teak farm. Participation in the goverment approved tree farm provides the benifits I have listed. I think you need to do your homework. I have.
2BNCR… You keep mentioning the “one” pre-approved program you’ve found. Can you give us a little more info or perhaps a link to a CR government/business site that gives more details? I checked into many different reforestation programs a few years back and found them to be a bit expensive with a very long term ROI. And as someone else had stated the property was normally in a very remote location making management and possible habitation a problem. I’d also like to see where it says that you can work at ANY job…
Fractional ownership programs seemed even more expensive since they simply were priced at the dollar investment thersholds to meet the government requirements. But the underlying investment were not really worth the stated investment. In other words… because the government sets the investment requirements at a certain amount the “program” required your investment to be in that amount. Even if your interest in the fractional program was in only 5,000 sq/mtrs of trees.
I’d like to see more info on the program you’re talking about. I still have an interest in getting involved in reforestation and have some property on the OSA I’d like to work with. Residency isn’t an issue for me so I’m more interested in the the mechanics and details of the reforestation program itself. As well as management.
I guess people read what they want to read. I don’t know why I am not making this clear so I will try another tactic.
An 100k investment is expensive. Even if you take the financing option that repays the 50K plus accured interest when the trees are harvested.
This is not fractional. You own one hectare of property and all the tress on it.
The benefit is immediate permanent residency. You do not have to wait three years for you status to become permanent.
If not for that, I don’t think it would be worth it.
If residency isn’t an issue for you then why would you be interested in it?
This is an approved reforestation investment which can be bought in to.
The thread begins with someone searching for a way to work in Costa Rica legally. This program provides it. If you wish me to give you the name of the program please supply contact info.
2BNCR… I don’t think Scott would mind if you supplied us with a CR government link that gives information about this program. I would like to see it in writing.
So for $100,000 I get 10,000 sq/mtrs of land in a remote location with no home? On site management of the trees is included in this investment program? And if I finance I have to hope that the trees pay off my note and the accured interest at the end of this investment? While that may be an attractive option for residency for someone without other options, it’s doesn’t make much sense financially. I have to guess that this land is part of a larger project. Perhaps we might have a link to the outfit running this program to check it out for ourselves… as well as a link to the government resource that provides the details you say such investment provides?
I’m interested in reforestation programs. Management and government benefits are why I ask. Residency isn’t a problem, but I know there are other government programs that provide assistance and funding and was looking to see if the folks running this program are versed in those as well.
Thanks for any info you can provide.
Edited on May 06, 2009 10:50
Both Panama and CR require 100k. In Panama they will finace 60K of the 100K – But of course in panama you woulds have to live in Panama! Not to my liking….
Pre-approved m eans that the Government has concluded that enough money and effort and time has been spent in & on our plantation to warrant an individual’s financial participation. No Government review board such as MINAE (El Ministerio del Ambiente y Energia) need look and evaluate the individual investor application. Application goes directly to Immigration complete with the proper paperwork to be submitted (see attachments) the investor is guaranteed their status. They receive their “cedula” which is in effect their internal identification card.
Non-restrictive means that the individual with his or her cedula received through our program is not restricted to working in the reforestation industry. They can work, if they so desire, in any field of their choice. For an example a number of real estate sales people have obtained their non-restrictive investor status and then work in their chosen field. The investor has the same rights as a natural born Costa Rican.
In fact the pre-approved, non-restrictive status gives you all the rights of a Costa Rica citizen except voting. You can not get involved politically.
A number of applicant have no intention of working here in Costa Rica but just like the fact that with the investment made there is no additional annual proof of funds or proof of conversion of funds as required by the other status nor is there an requirement to spend 3 months a year here in the country. With the status that we promote the individual needs only to be here once a year to renew the status. ( law actually reads, once a year for the first 5 years and then once every 2 years for 5 years and then once every 5 years)
An additional benefit to a status through our project is that the investment allows for the applicant, spouse and children under the age of 18, to enjoy all the benefits.
The second aspect or benefit of participation is the investment fact that they receive title to the 1 hectare (2.47 acres) of land, the 1,100 teak trees (the number of trees at time of planting) and the maintenance contract ensuring that the trees are maintained to the established high standards of the government licensed forestry engineers. As owner of the land and the teak trees the asset is yours and only yours. When harvest time arrives, approximately 7-8 years from now, the proceeds of the harvest is yours. It is your choice if you want to participate in the second crop or want to sell the land or for that matter your choice if you decide not to cut the trees and to keep the trees growing for future larger returns. We include literature from Dr. Raymond Keough in the attachment which indicates how many cubic meters of wood a person can expect from his or her hectare of land. We use 15 cubic meters per year per hectare for our projections. Thus a 20 year cycle will have available 15 x 1 x 20 years = 300 cubic meters of wood.The value of the teak at harvest time.
The contatc I have for this program is Kevin and his email is crnow@ yahoo .com
There you go… I just did your homework for you .. Do I get a prize or gold star???? (LOL).2BNCR… No prize or gold star yet. Finally found “Ley Forestal 7575, articulo #70” which reads “Artículo 70: Inversión en plantaciones forestales
El Poder Ejecutivo, con fundamento en las facultades que le confieren la Ley General
de Migración y Extranjería y su reglamento, otorgará la categoría de inversionista
residente a quien invierta en plantaciones forestales. La inversión en las actividades
descritas no podrá ser inferior a los cien mil dólares de Estados Unidos de América
(US$ 100.000,00).” I keep looking for where it says “sin condicion” for the cedúla. One of promoters of this program makes this statment…”For an example a number of real estate sales people have obtained their non-restrictive investor status and then work in their chosen field. The investor has the same rights as a natural born Costa Rican.” I would be curious to see what the actual “cedúla” says. Most of the promoters for these investments make these claims. ¿Que pasa?
- You must be logged in to reply to this topic.
