US Investment Green Card: Ultimate Investor Guide 2020
Worldwide, investors are waiting with bated breath to see whether the USA will reduce the minimum investment requirement for its EB-5 Investment Green Card Program from $900,000 to $450,000. While this would be unlikely under normal circumstances, the severe impact of the Covid-19 pandemic on the American economy may well force the Trump Administration’s hand.
While initial media reports stated that the investment requirement may drop to $450,000, with and additional 65,000 new Green Card slots being made available per annum, these have been subsequently debunked. Having said that, the possibility that these EB-5 program changes cannot be ruled out as subsequent economic stimulus packages will be getting announced in due course.
The increase was determined on an inflation adjusted basis, and given that the US economy was booming and unemployment was at an all-time low. The astonishingly fast onset of the Coronavirus and its devastating impact on the US economy may well lead to this pricing increase being reappraised in 2020.
In the interim, EB-5 South Africa provides an overview of the current EB-5 Investment Green Program, and outlines how South African investors can obtain American residency with ease. Contact us for a confidential consultation and to start preparing your Green Card application today.
How long does it take to get an EB-5 Investment Green Card?
EB5VisasAdmin
2020-04-12T13:44:59+00:00
Obtaining a conditional Green Card under the US EB-5 Program typically takes 18 to 24 months. As soon as the conditional Green Card is obtained, the investor will enjoy all the rights and obligations associated with US residency. This includes the ability to immediately live, work or open a business in the USA, and the permit is valid for 2 years.
Before the end of this validity period, the investor will have to apply to have the conditions on their Green Card removed. In order to do so, they’ll have to prove to USCIS that they have met the relevant EB-5 Green Card requirements during the initial 2-year period.
Provided that the job creation (or indirect job creation) requirements have been met, USCIS will convert the investor’s Green Card into an Unconditional Permanent Green Card. Ah this stage, the funds that were invested can be returned.
What are the tax implications of getting a green card by investment?
EB5VisasAdmin
2020-04-12T14:01:40+00:00
It is important to note that any USA pre-immigration tax structuring must be implemented prior to obtaining an Investment Green Card. As with any residency by investment based application, it is vital that the prospective investor carefully considers the tax implications: obtaining a US Investment Green Card means automatically becoming tax resident.
While South Africa enjoys a double taxation treaty with the USA, obtaining a Green Card by investment could result in a South African CGT Exit Tax liability, which is a liability arising from the deemed sale of global assets by the applicant.
In practice, however, when opting for an investment in a state such as Florida, the South African investor’s tax liabilities will not be higher than if they were to remain tax resident in South Africa. Every investor’s situation is different, however, and as such it is essential to consult a qualified tax consultant in this regard.
What are the alternatives to the US EB-5 Visa in 2020?
EB5VisasAdmin
2020-04-21T19:34:37+00:00
For investors unwilling to commit to a $900,000 investment, the American E-2 Visa Programme, which can be accessed by means of acquiring citizenship by investment in either Grenada or Turkey, may be a viable option.
Alternatively, there also exists a path to residency for existing business owners: A residency approach combining the E1 and EBc1 visa categories, on the basis of a $350,000 franchise investment, can also serve as the basis for obtaining a US Investment Green Card.
It is important to note that available client slots the latter investment option is even more limited than the EB-5 itself, so contact us today for more information should you believe that you may qualify for this option.
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