What types of U.S. visas are available for foreign real estate investors?
If you wish to establish your business in and move to the United States, it is imperative to understand the types of visas that are available for foreign real estate investors. If you decide to obtain an immigration visa, you should consult with an immigration lawyer and your CPA about the pros and cons of each type of visa.
The primary visa options for foreign real estate investors are E-1, E-2, and EB-5. Each visa has distinctive characteristics with which you can define the field of your business and the type of visa you need.
E-1 - Visa for traders and investors
The E-1 is a visa for foreign real estate investors from countries that have trade treaties with the U.S. The E-1 Visa will allow you to remain in the United States for two years. If you meet the conditions, you can apply for an extension that will make your visa valid for longer.
The following countries have trade treaties with the United States that allow qualifying nationals to apply for Treaty Trader status: Argentina, Australia, Austria, Belgium, Bolivia, Brunei, Canada, China, Colombia, Costa Rica, Denmark, Estonia, Ethiopia, Finland, France, Germany, Greece, Honduras, Iran, Ireland, Israel, Italy, Japan, Korea, Latvia, Liberia, Luxembourg, Mexico, Netherlands, Norway, Oman, Pakistan, Philippines, Spain, Suriname, Sweden, Switzerland, Thailand, Togo, Turkey, U.K., and Yugoslavia.
E-2 - Visa for traders and investors
The E-2 Visa is a favorite option for foreign real estate investors who want to live and work in the U.S legally.
The E-2 Visa permits a foreign real estate investor to either buy or start a business in the U.S. through an investment of a substantial amount of capital. For the E-2 Visa to be approved, the investment needs to be significant. You must choose the type of business you plan to establish in the U.S. in order to apply for this visa.
In our experience, we have seen the following businesses qualify for the E-2 Visa:
• Real estate construction
• Real estate flipping
• Real estate management
• Real estate brokerages
The E-1 Visa is for foreign real estate investors from countries that have trade treaties with the U.S. The E-2 Visa is for foreign real estate investors who either buy or start a business in the U.S. through an investment of a substantial amount of capital.
What are the advantages of E-1 and E-2 Visas?
The E-1 and E-2 Visas allow you to travel in and out of the U.S. without immigration implications. These visas allow you to bring your dependents and your spouse. As long as you continue to qualify for one of these visas, you can stay in the U.S. with unlimited two-year extensions.
Do E-1 and E-2 Visa holders have to pay taxes in the U.S.?
The answer to this question depends on your tax status. It is important to notice that your tax status is relevant only for tax purposes. Your tax status does not affect your visa status. If you are considered a resident for U.S. tax purposes, you will most likely have to pay taxes on your worldwide income. If you are considered non-resident for tax purposes; you will only have to pay taxes on your U.S. Income.
What makes you a U.S. tax resident?
You will be considered a U.S. resident for tax purposes if you are a U.S. citizen or a green card holder or if you meet the substantial presence test for the calendar year,
You meet the substantial presence test, if you are physically present in the U.S. for 31 days during the current year, and 183 days during the 3-year period including all days of the current year, 1/3 of the days you were present in the first year before the current year, and 1/6 of the days you were present in the second year before the current year.
You should consult with your international tax CPA because there are elections that override the green card test and the substantial presence test that may be beneficial for tax purposes, as follows:
• Elections under certain tax treaties
• Closer connection election to a foreign country
• First-year election to be treated as a resident for tax purposes
• Nonresident spouse treated as U.S. resident for tax purposes
Immigrant Investor Visa Program (EB-5)
The EB-5 Visa, or Immigrant Investor Program, aims to stimulate the country’s economy by using foreign investors.
In 1992, Congress created the Immigrant Investor Program, also known as the Regional Center Program. This program sets aside EB-5 visas for participants who invest in commercial enterprises associated with regional centers approved by USCIS based on proposals for promoting economic growth. Under this program, minimum investments between $900,000 and $1,800,000 are required to create a new company that employs U.S. citizens.
Under the EB-5 program, foreign real estate investors, along with their spouses and unmarried children under 21, are eligible to apply for permanent residence with a Green Card if they make the necessary investment in a commercial enterprise. Their investment must create or preserve ten permanent full-time jobs for qualified U.S. workers.
If the foreign real estate investor’s petition is approved, the investor and their dependents will be granted conditional permanent residence valid for two years. Be careful to choose a reputable regional center so you meet the requirement for obtaining an unconditional Green Card. Please, please do not go along with this type of visa and investment. You should be represented by an immigration attorney.
Yes. Your spouse and children under the age of 21 qualify for an E Visa derivative, based on the qualifications of the primary applicant. They do not need to have the nationality of the principal applicant.
When a spouse’s or child’s surname differs from the primary applicant’s surname, as their names appear on the passport, then the applicant must prove the relationship’s legitimacy. Most often, this is established with a marriage certificate, birth certificate, and other legal documentation. Common-law spouses and fiancés do not qualify for the derivative of this visa.
Do you need a lawyer to apply for your visa or Green Card in the U.S.?You are not required to hire a lawyer when applying for an immigrant visa or Green Card. However, we strongly recommend that you hire a qualified immigration attorney to help with your Green Card or visa application.
Moving to the U.S. is a significant, life-changing decision that could have substantial ramifications. You are moving your family to a new country, and in most cases, you are selling your properties back home. Your children will be attending a new school, and you are investing in a new market. There is no understating the significance of this life-changing event.
If you don’t use an attorney, you risk getting your visa revoked and having to return to your country of origin. To avoid that possibility and secure your U.S. immigration visa status, we strongly recommend that you work with a qualified immigration attorney. H&CO does not practice law, but we can provide you with a list of immigration attorneys that we have been working with to help our clients.