We created this easy guide to help investors understand the EB-5 Visa Program with the most frequently asked questions.
What are the indicators that increase the likelihood of emigration from a particular country and especially into the US EB-5 investment visa program?
There are four (4) main macroeconomic factors that tend to cause a particular foreign country to exhibit a high volume of emigration from that particular country:
- political instability in the foreign country,
- economic instability in the foreign country,
- intent to diversify investment portfolio, and
- lack of (or increased) education opportunities.
When all four factors are exhibited at the same time, there will be high volumes of emigration, but a combination of any of these factors will also trigger some emigration from the particular foreign country.
What are the legal requirements for the EB-5 investment visa program?
An USCIS approved regional center is an investment project, usually managed by a private entity which has an approved I-924, meets the economic feasibility study for job creation, permitted to receive non-US citizen or foreign investors with right to confer permanent residency and US citizen, and follows all SEC regulations and guidelines. Foreign investors can be a passive investor in a regional center by investing at least $500,000 USD and pay an administrative fee (between $20,000 USD -$75,000 USD as of 2014). There are over 200 approved regional centers (as of 2014) in the US.
What is the difference between an active and passive investment in the EB-5 program?
In terms of the US EB-5 investment visa program, a passive investment is usually an investment of $500,000 USD into a regional center whereby the investment company will run and operate the investment vehicle without the input or control of the investor. In contrast, an active investment is whereby the investor opens, operates, and controls the investment with at least a 51% interest in the entity; this is reserved for the $1,000,000 USD investment or decreased to $500,000 USD if in a “rural area” or “targeted employment area.”
Do I have to live in the same state or city that my investment (either RC or business) is in?
No. The foreign investor does not have to live in the same state or city as the location of the regional center and may not have to live in the same state or city of the direct investment, if it is a franchise.
At DG, we provide support in real estate investments in the United States through EB-5 Visa program and other paths. Contact us to find out how we can help.
