Attracting Foreign Buyers

Why E-2 Visa Holders are looking at the EB-5

• Many are familiar with the E2 visa program, which has been the traditional route for immigration to the USA. However, for those who have resided in America for a number of years there has been a degree of anxiety, as well as expense at renewal periods. It is increasingly clear that renewal of the E2 visa cannot be taken for granted however long you have lived in the US.
• New E2 applicants are finding a lengthy waiting period, possibility of rejection, and the need to inject an increasingly high level of funding to find a qualifying business.
• There are particular concerns
  If you wish to retire,
• Have children approaching their 21st birthday,
• It you want to remain legally in the USA
  Another downside is the E-2 has ‘non-immigrant’ status, which has serious implications few point out.
• There are thousands of E2 visa holders living in the US, sooner or later they are going to have to confront their status and sort it out for the long term. If they sell their business or it ceases trading, their visa will not be renewed. Also, their children at 21 will need their own visas or be forced to leave the US. Such a lack of security may not suit everyone looking to reside in the US.

Compared to other non-immigrant and immigrant visas, the E-2 visa has numerous advantages.

1. It “covers” the investor, his spouse and all his children under 21.
2. It is initially issued for 5 years, but can be renewed indefinitely.
3. There is a relatively short processing time, including premium proceedings that allow an investor to receive a decision within one week.
4. An investor can legally work in the US in the enterprise.
5. Investor’s spouse can apply for employment authorization and lawfully work either for the spouse’s enterprise or elsewhere.
6. The investor, his spouse and children can freely travel outside the US and reenter the US as they please.

Capital Investment Requirements

Capital means cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien entrepreneur, provided that the alien entrepreneur is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness. All capital shall be valued at fair-market value in United States dollars. Assets acquired, directly or indirectly, by unlawful means (such as criminal activities) shall not be considered capital for the purposes of section 203(b)(5) of the Act.

Note: Investment capital cannot be borrowed.

Required minimum investments are:

• General. The minimum qualifying investment in the United States is $1 million.
• Targeted Employment Area (High Unemployment or Rural Area). The minimum qualifying investment either within a high-unemployment area or rural area in the United States is $500,000.

A targeted employment area is an area that, at the time of investment, is a rural area or an area experiencing unemployment of at least 150 percent of the national average rate.

A rural area is any area outside a metropolitan statistical area -SMA- (as designated by the Office of Management and Budget) or outside the boundary of any city or town having a population of 20,000 or more according to the decennial census.

Dependents

A spouse and unmarried children under the age of 21 may be admitted to the U.S. with the buyer on a two-year conditional period. Once the I-829 petition to remove conditions is approved, then the conditions will also be removed from a spouse and children’s Green Card status. Once a permanent resident, a spouse and children will be authorized to work or attend school in the U.S.

Benefits of an EB-5 Visa

The benefits of obtaining an EB-5 visa include the following:

• Legal permanent residents admitted through the EB-5 Investor visa enjoy many of the benefits of United States Citizens, and their status requires no renewal or re-application. Other U.S. non-immigrant visas, such as E-2 and H1, often never result in permanent residency, have time limits, require additional filing with USCIS, and may require travel to the U.S. consulate in your home country every few years. Furthermore, U.S. immigration laws could change and prevent future approval when visa renewal becomes due.
• The United States is considered a safe haven for the families of permanent residents. Any member of the family granted a Green Card can come into the U.S. at any time and stay as long as they wish (subject to certain conditions regarding length of time when they leave the USA).
• EB-5 investors have constant easy access to the United States for personal and business purposes.
• Permanent residents do not need a visa to travel to the U.S., though they will need their green card. EB-5 investors may live, retire, or own their own business anywhere in the United States.
• The U.S. has internationally recognized colleges and universities for both basic education and graduate study. However, since these vary enormously, it is worth seeking professional advice on this matter. As a resident, the EB-5 investor can benefit from lower tuition costs, particularly in your state of residence.
• The cost of living in the U.S. is often considered lower than other industrial nations. Consumer goods, services, and housing can be considerably less expensive than comparable goods and services in many other countries.
• Students may work in the U.S. while they attend college, to help offset tuition costs. They may also continue working after graduation.
• The U.S. provides many financial, social, and educational entitlements: public schools, higher education and, after a period of contribution, medical and social security benefits.
• After five years, the investor has the ability to bring other family members to the U.S. and obtain U.S. citizenship for them.
• Take any job, run or start any business, even retire.
• Any nationality may apply.
• No language requirement.
• Same privileges as a US citizen:

– Free public school education

– Same university fees.

– Access to Medicare after 5 years.

• Wider job market for your children in the future.
• Property tax savings in some states like Florida.
• Citizenship after five years.