EB-5 Source of Funds for Italians. Webinar.

Join Mark I. Davies, our chairman, and Matteo Tisato, Senior Immigration analyst in our Italy Practice for a webinar with EB5AN today at 2pm EST / 8pm Italy. Click the link below to register & the same link to view a recording after the event.

Source of Funds for EB-5

In order to ensure the integrity of the EB-5 Investor Visa Program, applicants must be able to document where the funds used to pay for their Green Cards come from. An applicant must demonstrate that they are the owner of the funds being invested and that they came by these funds through legal means.

Since the total investment requirement for EB-5 is a minimum of $900,000, many of our clients need to pull together funds from multiple different sources. This can include wages, the sale of property, capital gains on investments, gifts from friends and family, as well as loans.

In reality this can be quite complicated, and your EB-5 immigration attorney will play a vital role in helping you to make strategic decisions about which funds to use for your EB-5 investment.

For example, you will need to prove that all taxes have been paid on the sources of income and that there is appropriate collateral against any loans.

Crucially, it is important that the relevant documents are translated into English. Therefore, it is very helpful to work with law firms with in-house Italian language capabilities. Matteo Tisato, our Senior Immigration Analyst, works with our Italian clients in this respect.

Davies & Associates Source of Funds team across the United States is highly experienced. They have dealt with hundreds of cases and have a 100% success rate in this aspect of the application.

What is EB-5?

The EB-5 visa grants a person US permanent residency (Green Card) in exchange for a minimum $900,000 investment. A single application and investment can include the primary applicant, their spouse, and any children under the age of 21.

In addition to documenting the Source of Funds, the other key requirements of EB5 are are

  • invest in a New Commercial Enterprise
  • create at least ten jobs
  • invest at least $900,000 in a Targeted Employment Area or $1.8 million outside of these areas.

To help ensure compliance with the rules and to minimize risks to the Green Card, the vast majority of EB-5 investors elect to work with a Regional Center, but it is possible to make and manage the investment yourself in so-called “Direct EB-5”.

Webinar

On today’s webinar, Mark and Matteo will be joined by Sam Silverman and Michael Schoenfeld, cofounders and managing partners of EB5 Affiliate Network (EB5AN). a leading EB-5 consultancy and Regional Center network.

Our appearance alongside EB5AN is in no way an endorsement of their work or projects. As a law firm we offer our clients impartial due diligence on their chosen Regional Center projects. Our attorneys assist clients with identifying the risks to both their Green Card and the return of their capital – whichever Regional Centers they shortlist.

The webinar is scheduled for Thursday, February 18, 2021 and will share valuable information on the challenges EB-5 investors face with respect to of source-of-funds documentation. The webinar will break down this complicated issue for an Italian audience, with Matteo from our Italy team on hand to provide translation into Italian where necessary.

The EB-5 program faces reauthorization at the end of June 2021. The likelihood is that the program will continue, given the large number of jobs it creates and the billions of dollars in investment it brings to the United States. Yet, nothing can be taken for granted. Anyone considering the program should consider acting before the end of June. Given the time it takes to document Source of Funds to prepare an application, the time to start is now.

Please click here to register for the webinar, or to view a recording of the webinar.


This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


Business Immigration from the UK to the USA

Political headwinds have left entrepreneurs and business owners looking for more effective ways to trade. Namely, moving to the source and setting up a business in America.

The United Kingdom is America’s seventh largest trading partner with imports from the UK totalling $125 billion and exports to the UK exceeding $147 billion in 2019.

While bilateral trade grew to an all time high before the pandemic, Trump administration policies have been making things harder for certain sectors. A trade dispute with the European Union over subsidies to Airbus resulted in tariffs being imposed on a number of British products. The Scotch whisky industry, for example, was hit by a 25% tariff on its exports to the US market.

Things should start changing as a result of Brexit and the inauguration of President Biden, but there has not yet been any hurry to remove these tariffs on the US side. Moreover, continued uncertainty around the future of trade and globalization has left many business leaders asking how they can do things differently to hedge against future instability.

As a result, we have seen an increase in the number of people coming to our firm to discuss business immigration options. Not just from Great Britain, but from across the European Union – from Germany, France, the Netherlands and beyond.

There is increased interest in business expansion to the United States, as well as with people wishing to set-up new enterprises. The good news is that, being a land of commerce, the U.S. has multiple options for just such people.

The L-1 Intracompany Transfer Visa

The L-1A Visa allows a manager or executive level employee to move from the British office to the US office of the same company. More than 10,000 L-1 visas were issued to Brits in 2010. Many of them working at large multinationals and moving between established offices.

Yet, the L-1 can also be used to set-up and grow a new office in America. Businesses who do not yet have a presence in America can set one up and then transfer a senior-level employee to manage the business on an L-1 visa. D&A’s lawyers can take care of the company formation as well as the immigration work.

The L-1 is time limited, non-immigrant visa. British people are granted an initial visa of up to a maximum of 60 months (five years). New office L-1s are granted for a much shorter period so the authorities can monitor the progress for the business. Yet, these visas can be renewed – up to a maximum of seven years for an L-1A visa. There is also an L-1B route for people in the company with “specialized knowledge”. This is limited to a maximum of five years. To remain in the United States for longer, an L-1 visa beneficiary must switch to a different visa. The EB-1C and EB-3 visas offer permanent residency and fit well with the L-1 visa.

Click here to visit our UK L-1 Visa Page

E-2 Treaty Investor Visa

The E-2 Visa allows a person to move to the United States to operate a business. To qualify for the E-2 visa, a person must be a citizen of a country that holds a relevant treaty with the United States. The United Kingdom holds the oldest such treaty, dating back more than 200 years.

Click here to visit our UK E-2 Visa webpage

Eligibility is determined by citizenship, so if you were born outside the UK and subsequently became a British citizen, you would still eligible. This contrasts favorably with U.S. family-based and employment-based immigrant visa categories, where eligibility is determined by your country of birth.

There is no stipulated investment amount, but it must be credible to support the business plan. Generally speaking, it should be upwards of around $100,000.

Unlike the L-1, the E-2 visa can be renewed indefinitely provided the underlying business continues to trade and meets its targets. The maximum length of time an E-2 visa can be issued for is five years, at which point a renewal is required.

Family of both L-1 and E-2 visa holders can move from the UK to the US with the primary applicant. That includes a spouse and any children under the age of 21. Spouses can apply to work in the United States and often clients arrange their E-2 visa around the spouse’s career ambitions.

Visit our UK E2 Visa Center

EB-5 Visa

To have true freedom to work in the United States (and indeed study or retire), permanent residency is the best course of action. One of the fastest routes to a Green Card for UK nationals is the EB-5 Investor Visa. It offers a quick path to a Green Card for a $900,000 investment. This is cheaper than the UK’s own investor visa program, which starts from £2 million and increases in value if you wish to reduce the time period before your wish to apply for indefinite leave to remain in the UK.

The number of EB-5 visas available to each country each year is just over 700. The United Kingdom is not close to using up its quota, so there is no oversubscription or waiting list for UK EB-5. However, your EB-5 quota depends upon your country of birth. So, for example, an Indian-born British citizen would count under India’s quota. Given India’s population size and the popularity of the United States as a destination, India is often close to its annual cap.

Davies & Associates is one of the most well established EB-5 law firms in India. We have helped many Indian families successfully apply for their EB-5 visas and have been consistently quoted on the subject in the Indian media. Our Russian speaking lawyers and paralegals are also well placed to help the Russian community in the UK with their US immigration goals.

UK Solutions for Americans

Trade cuts both ways and Americans are inevitably also interested in UK visas. The United Kingdom is still gearing up its post-Brexit immigration system, but there are plenty of opportunities for American business owners and entrepreneurs. There is a UK intracompany transfer visa, which is similar to the L-1 Visa. There is a Sole Representative Visa, which has some similarities to the new office type of L-1 visa. The UK also has a start-up and innovator visas designed to attract innovative, scalable and viable technologies to the United Kingdom.

Davies & Associates is uniquely placed to help Brits looking to move to America and vice versa. Our chairman and founder is a Brit who migrated to America many years ago. Our core teams sit in New York, Chicago and London. Contact us today to discuss your specific circumstances.


This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


February Visa Bulletin Analysis: EB-5 Visa Wait Times Explained

The Department of State has issued its February Visa bulletin detailing the latest shifts in the Final Action Dates for the EB-5 Immigrant Investor Visa Program among other employment and family-based visas.

For EB-5, the February Visa Bulletin looks much the same as the January Visa Bulletin. As in January, the only change over the previous month is a two week progression in the Final Action Dates of Vietnamese applicants from September 15, 2017 to October 1, 2017. The Final Action Date for Chinese applicants has, once again, remained static on August 15, 2015.

All other countries are listed as “C” or current. This continues to include India, which had been subjected to an EB-5 visa waiting list known as “visa retrogression” as recently as July 2020.

What this means is that there is expected to be an EB-5 visa available in the current annual quota for anyone born outside China and Vietnam. This means an applicant can progress immediately with their EB-5 application.

The reason for the waiting list is that the number of EB-5 Investor Visas available is limited to just over 700 visas per country per year. Your EB-5 quota is determined by your country of birth. So if your country of citizenship has changed since birth, your eligibility is still determined by where you were born and not where you currently live.

Priority Dates

EB-5 applicants are issued with a priority date, which is the date at which their application was received by the US Citizenship and Immigration Services (USCIS).

For Chinese and Vietnamese applicants, if your priority date is after the date listed under your country in the visa bulletin, you must continue to wait. Eventually the date listed in the visa bulletin will move to a point at which you can proceed with your application. For example, the latest movements of two weeks in Vietnam would affect a small number of applicants who have their priority dates in a two-week window between September 15, 2017 and October 1, 2017.

The dates listed in the visa bulletin can move backwards as well as forwards. The dates are calculated upon assumptions and an averaging of current demand, success rates, and the numbers of visas per application.

For example, one application can include multiple family members each requiring their own visa. In an extreme scenario, an applicant might have a spouse and ten children. That would mean one application would take up 12 of the visas available in the annual quota.

The new administration of President Biden is looking at whether it is feasible to separate dependent family members out of the annual quotas. This would quickly make a dent in the waiting lists.

Date for Filing

The visa bulletin also contains a second set of dates called “Dates for Filing”. This is when you could submit a visa application to the National Visa Center even though there is not yet expected to be a visa available. This is partly to provide some preparation time, but is especially aimed at applicants already living in the U.S. on other visas filing an Adjustment of Status (AOS). Under such circumstances this may have an impact on the applicants ability to continue working legally in the United States.

There was not change to the Date for Filing from the previous month. People from Vietnam can progress ahead, but the date for filing for China-born applicants remains static at December 15, 2015.

Final Action Dates February Visa Bulletin

EB-3 Visa for Highly Skilled Workers

Indians are the main group affected by a waiting list for the EB-3 visa category for highly-skilled workers. The EB-3 is the immigrant (permanent residency) counterpart to the H-1B Visa. Progress remains glacial with little more than a one-week forward movement for Indians from March 22, 2010 to April 1, 2010. The only other country facing visa retrogression is China which moved from December 15, 2017 to January 1, 2018.

The long delay to Indian EB-3 is one of the reasons behind proposals by the Biden administration to remove country caps for employment-based visas. This will significantly assist Indians in the EB-3 Visa category and Chinese in the EB-5 Visa category. This would be great news for applicants who have been queuing for years, but could subject new applicants to long delays.

The annual quota system does not take account of population size. So China and India, with the world’s first and second largest populations, have the same quota as Liechtenstein and San Marino, with fewer than 40,000 inhabitants each. This, combined with a long history of emigration to America, explains why China, India and Vietnam feature so heavily in the Visa Bulletin.


This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


India’s Economy Predicted to be Fastest Growing in World in 2021: Options for Expanding Your Business Overseas


The Indian economy is forecast to be the fastest growing in the world this year. According to a report by Global Data the Indian economy is predicted to grow by 9.7% as its vaccination program gets underway.

As India’s economy recovers and grows, its business owners and entrepreneurs are once again eyeing global growth. At Davies & Associates we are seeing an uptick in demand for US and UK business and investors visas, as well as some interest in new markets like Vietnam and Italy.


L-1 Visa: Expanding a Business to the United States

Our Indian clients have continued to want to expand their businesses to the United States throughout the pandemic. Travel restrictions and an immigration suspension have inevitably slowed things down, but with a vaccine and a new Biden administration, things are starting to open up.

The main visa for expanding a business to the U.S. is the L-1 Visa, which allows a manager, executive or specialized-knowledge employee to move to the U.S. to oversee the establishment of the new office. With its teams of corporate and immigration lawyers, Davies & Associates helps its clients establish the U.S. entity as well as conducting all the necessary visa work.

The L-1 is a time limited visa restricted to a maximum of seven years, so L-1 visa holders need to then return home or transition to another visa. There is a possibility of obtaining a green card under the EB1C Visa, provided the client is able to demonstrate that there was no immigrant intent at the time of applying for the L-1 Visa.


E-2 Visa: Starting a Business in the United States

The other key solution for setting up a business in the United States is the E-2 Treaty Investor Visa. We have been helping an increasing number of Indians with this visa, despite it not been a typical route to America. In fact, we were one of the first law firms to obtain an E-2 Visa for clients from. This is because Indians are not directly eligible for the E-2 Visa because India does not hold a relevant treaty with the United States. Our Indian clients need to first become a citizen of an E-2 Treaty Country. Typically they opt for Grenada in the West Indies.

The E-2 Visa allows a person to move to the US with their family to invest in and run a business. The investment required needs to be appropriate to the business plan and usually upwards of $100,000. The visa can be renewed as long as the business continues to operate and spouses can apply to work outside the business.

The Grenada Citizenship by Investment application is quick and relatively cost effective. It takes just a few months and the applicant does not need to appear in person. The price starts from $150,000 for a donation to the national fund or $220,000 for an investment in real estate. Grenada has continued to process applications throughout the pandemic.


EB-5 Investor Visa

India was the largest market in the world for the U.S. EB-5 Investor Visa in 2019. That was before the investment requirement increased from $500,000 to $900,000 in November of that year to account for inflation that had not been applied since the program started in the 1990s.

The sticker shock of the price rise combined with Covid-19 dampened demand for EB-5 in 2020, but demand is on the rise again. It is good timing. Indians are limited to remitting a maximum of $250,000 each financial year – which will reset on April 1. This means that half the funds for and EB-5 investment can be remitted at the end of March and the remainder at the end of April. This should be done in a legally compliant way and we urge you to discuss this with our team.

Congress will debate the future of EB-5 at the end of June. The industry is hoping for long term reauthorization that will provide a clear steer to applicants. The changes could well be positive, but investors who wish to proceed with the certainty of the current regulations ought to consider applying before then.


UK Immigration Options

The UK has emerged from Brexit and is starting to look to Asia and to the Commonwealth. India ticks both boxes, and the UK remains a popular destination for our Indian clients. Entrepreneurs have the option of moving to the UK as the Sole Representative of their company, by transferring to the UK office of the business they work for, or by applying for a Start-up or Innovator Visa. The UK also offers residency by investment, albeit for considerably more than the U.S. with a starting price of £2 million.


Italian Immigration Options

Italy still has some way to go to be as popular with our Indian clients as the U.S. or the U.K., but people are nevertheless showing increasing interest in the country. Our recent expert webinar on One Euro Homes proved particular popular, and people have been intrigued by the Elective Residency Visa. This offers Italian residency to anyone who can prove they have at least €32,000 a year from income outside Italy to support themselves. Italy offers a residency-by-investment visa which is much cheaper than the U.S. or the U.K. The government recently reduced the price as a result of Covid, and investment now starts from €250,000.


This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


Immigration Outlook for 2021

Happy New Year from the entire team at Davies & Associates. With a global vaccination program underway, 2021 looks set to bring a welcome return to something closer to normality.

Despite the difficult circumstances, we were delighted to move so many families and businesses around the world in 2020, and we look forward to serving many more in the coming year.

Best wishes,
Mark I. Davies Esq.
Global Chairman, Davies & Associates



United States Immigration

Much of how immigration policy plays out during Biden’s first two years in office will depend on which party ends up in control of the Senate after a run-off election in Georgia today, January 5. Then tomorrow, January 6, Congress is required to sign off on the election results in what will be President Trump’s last opportunity to contest them ahead of Joe Biden’s inauguration on January 20. The political theater may calm down in late January, but questions will remain about how Biden will approach immigration policy as he attempts to repair the nation’s finances after Covid-19.

EB-5 Immigrant Investor Visa Program in 2021

The EB-5 Investor Visa brings investment and jobs to the United States. It offers Green Cards for a qualifying family group in exchange for a minimum $900,000 investment that creates ten jobs. It is for this reason that the EB-5 Program was deliberately not suspended by President Trump in 2020. The program has enjoyed the support of politicians from both main political parties and showcases how the immigration system can be a net benefit to the economy and employment.

The EB-5 program will find itself on the agenda of Congress this year as it faces reauthorization in June and as a bipartisan reform bill gains ground. While this could have a positive impact, some investors may wish to act in the first half of the year to lock in their investments with the surety of the current regulations. 

Read More

E-2 Treaty Investor Visa in 2021

The E-2 Treaty Investor is governed by treaties with sovereign countries, meaning it is more insulated from political changes than other types of visa. In fact, the oldest treaty (with the United Kingdom) was signed more than 200 years ago. The E-2 visa allows a person to move with their families for the purpose of investing in and running a business in the United States. It brings investment to the U.S. and creates jobs for U.S. workers. It was not covered by the Presidential Proclamation which banned the issuance of certain visas last year. 

Read Why You Should Apply for an E-2 Treaty Investor Visa in 2021 in Silicon India magazine, by Verdie Atienza, the Senior Immigration Attorney in charge of our E-2 and L-1 Visa Practice.

Read More

L-1 Intracompany Transfer Visa in 2021

The issuance of L-1 Visas was suspended by President Trump last year. The President just extended the ban on L-1 (as well as H-1B visas) through to March 31, 2021. This means Joe Biden will need take the decision on whether to immediately roll back on President Trump’s policy on the L-1 category or let it lapse in three months time. Increasingly our firm is helping business owners make use of the L-1 visa to be allowed to move to America to set up a new office and oversee the expansion of their businesses. Despite the ban, our clients have been using the time to prepare an application for when the ban is lifted. 

Read More

National Interest Exception

The U.S. border has been closed to the citizens of select countries with high rates of Covid-19. However, it is possible for L-1 and E-2 visa holders to apply for special permission to travel to the United States if they can make the case that this is in the national interest. Our firm obtained multiple National Interest Exceptions to allow our L-1 and E-2 clients to travel to the U.S. in 2020. Please contact us if this affects you. 

Read More

Italian Immigration

Our Italian business grew rapidly in 2020, in spite of challenging circumstances. This year is set to be even stronger as the Italian government looks to the immigration system to help rebuild the economy. To that end, it cut the cost of the Italian residency-by-investment visa in half for certain types of investment. It has also fully reopened the Elective Residency Visa after some consulates stopped accepting applications because of Covid. Elective Residency, which is our most popular Italian visa, allows a person to obtain Italian residency if they can prove a regular income of at least €32,000 / year among other conditions. 

Our firm also helps clients with all matters relating to Italian tax, citizenship and property. At the end of 2020 we hosted a webinar on the famous One-Euro Homes project featuring an expert panel covering all aspects of the program – including someone who has been through the process.

Read more

Click Here to Watch our One Euro Homes Webinar from December 2020

United Kingdom Immigration

The United Kingdom officially left the European Union at the end of 2020 and is gearing up its new points-based immigration system. It also recently launched a Global Talent Visa to attract future leaders in digital technology, academia, and the arts. The U.K. investor visa, skilled-worker visa, and start-up visa are all still available. Some of the details of the new system are yet to be determined, so we advise you to set up a consultation with our UK team.

Read more

Grenada Citizenship by Investment

Demand for the Grenada Citizenship by Investment Programme grew during 2020 as more people sought dual citizenship amid the uncertainty of Covid-19. Grenada offers citizenship within a matter of months in exchange for an investment in Real Estate starting from $220,000 or a donation starting from $150,000. Grenada is an E-2 Treaty Country, which means people from a non E-2 Treaty Country (e.g. India, South Africa, Vietnam, Russia & China) can become eligible for the U.S. E-2 Treaty Investor Visa after obtaining citizenship of Grenada.

Read more

Start a Business Anywhere in the World in 2021

Davies & Associates has helped hundreds of clients move their existing businesses overseas or start new ones around the world. The tasks of setting up an overseas office and of applying for the necessary visas are intricately linked. Our teams of corporate lawyers and immigration lawyers work closely together to ensure the business is set-up in a way that complies with all local immigration regulations. We then remain by our clients side, providing all the necessary ongoing corporate and immigration support as they grow and thrive in their new home.

Read more

 

Clients Wait Out the EB-5 Queue in the USA Using E-2 Visa

D&A Clients Wait Out the EB-5 Queue in the USA Using E-2 Visa

We are delighted to have received yet another E-2 Treaty Investor Visa approval today. This time it’s for a client who already has an approved EB-5 application, but is facing a wait before an EB-5 visa becomes available. In fact, she is part of a growing trend of people looking to the E-2 visa as a means of moving to the United States faster than EB-5 allows.

The EB-5 Visa is proving fantastically popular in some quarters – especially China and Vietnam where supply is often outpacing demand. As well as India, South Korea and Taiwan where demand is fast catching up with supply.

When demand exceeds supply, that country is subject to a waiting list for EB-5.

There are normally around 700 EB-5 visas available to each country per year. The quota does not take account of population size, which partially explains why demand is so high in certain countries.

Growing demand can also be explained by the fact that the EB-5 investor visa is offers permanent residency at a lower cost than other similar nations, for example the UK starts from £2 million and Italy, which was mostly more expensive until the Italian government reduced its investment amounts over the summer in response to Covid-19.

How long are the delays?

It is hard to calculate the exact length of the delay faced by each country because they are subject to so many moving parts. We explain the delays in more detail in our analyses of the visa bulletins.

Citizens of China are subject to extremely long, multi-year delays. For Vietnam the delay is shorter but still an inconvenience. And for India there is currently no delay, but there were delays as recently as this summer. Taiwan and South Korea have never faced delays, but they are heading in that direction.

Some people opt to wait out the delays in their home country, but others are keen to get to the United States sooner. That is where the E-2 visa comes in.

The E-2 Visa has no waiting list and processing times are very fast

The EB-5 country-quota depends upon a person’s country of birth rather than their current citizenship. For example, the client approved for E-2 today was born in mainland China but is currently an Australian citizen. That means that for EB-5 purposes our client is subject to the China quota – which has a long waiting list – rather than the Australian quota which has never come anywhere close to its annual cap.

Yet that Australian citizenship has come in handy when it comes to the E-2 Treaty Investor Visa. Because, although there are no caps or quotas for E-2, eligibility for this visa is determined by your country of citizenship.

China does not hold and E-2 Treaty Country with the United States, so its citizens are ineligible. Australia, on the other hand, has a well-established treaty that makes its citizens eligible for the E-2 visa.

Essentially, you must be a citizen of an E-2 Treaty country in order to qualify for an E-2 visa. This means the country in which you hold citizenship must hold a relevant Treaty with the United States. Click here to find out if your country is on the list.

Becoming eligible for the E-2 Visa

If your country is not on the list then you can become eligible through a two-step process. First you need to obtain citizenship of an E-2 Treaty country, then you can apply for the E-2.

It sounds complicated, but in reality it is relatively simply. We have done this for a number of clients in the past. The whole process can take as little as nine months if everything runs smoothly.

Grenada and Turkey offer fast and cost-effective routes to citizenship that can provide a springboard to the E-2 Visa. Learn more about Grenada’s citizenship program here. Learn more about Turkey here.

Benefits of the E-2 Visa

So why have people bothered going to so much trouble? Well for one thing, Turkey and Grenada offer multiple benefits in their own right. But also because people get excited by the E-2 visa, which allows them to move to the United States for the purposes of owning and operating a business.

  • Investment requirements are relatively modest (no hard-and-fast rule, but usually starting from around $100,000).
  • You can start your own business or purchase a franchise
  • You can bring your spouse and children with you
  • Spouses can apply to work outside the business
  • You have freedom to travel to and from United States
  • There is no longer a requirement for a physical office space
  • The visa is renewable indefinitely – if the underlying business remains

E2 to EB-5

Unlike the EB-5 visa, the E-2 visa does not offer permanent residency. So if you close the underlying business, you would be required to leave the United States or find an alternative.

The E-2 Business Could Qualify for EB-5 if it Meets the Requirements

That is where the EB-5 comes in. There are two options for transitioning to EB-5 from E-2. Firstly, if your E-2 business has grown large enough, it may qualify as an EB-5 investment in its own right. The invested capital would need to be more than $900,000 if your business is situated in a targeted employment area ($1.8 million outside of these areas). It would also need to be able to sustain ten full-time employees.

Alternatively, you can invest in the EB-5 Regional Center program separately to your E-2 business. This removes the challenge of ensuring your business is consistently compliant with the EB-5 rules. While the Regional Center works to ensure compliance, you and your attorney should still be conducting due diligence on the Regional Center’s investment project to identify any risks to your Green Card and investment.

Case study

Our client established a New York-based company that sells well-designed, high quality, comfortable women’s clothing. It sells products online but the items will also be available in luxury department stores.  

Customers are able to order items directly from the Company’s website, Instagram, or mobile application. The Company uses engaging social media content, with a focus on building a brand through storytelling and it employs technology to create an immersive experience for clients through application of augmented reality (AR).

Our client was born in China but is currently an Australian citizen. She already has an approved EB-5 application (Form I-526), but faced a long wait for an EB-5 visa with all other Chinese-born applicants.

Chinese citizens are not eligible for the E-2 visa, but by holding Australian citizenship, she was eligible. This means the client was able to apply for an E-2 visa to pursue her entrepreneurial dreams in the United States.

Nevertheless, most of her funds came from China, which meant there were restrictions on the transfer of funds that required careful planning. Additionally, the closure of the US consulates in Melbourne delayed the interview and slowed the whole process by several months.

We wish her the best of luck in America.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


EB-5 Visa Quotas in 2021

EB-5 Visa Quotas Almost Double in 2021, Potentially Benefiting India, China, Vietnam

The number of EB-5 visas available to investors is set to almost double in the coming year – a peculiar side-effect of the Covid-19 pandemic.

EB-5 is an employment-based US immigrant visa. The number of employment-based immigrant visas available each year is limited to 140,000. However, this is topped up if there are any unused family-based visas from the previous year.

The Covid-19 pandemic has led to an unprecedented number of unused family-based visas. The closure of US embassies and the temporary suspension of various visa categories have had a significant impact.

This means there is a large number of visas that can be carried over from the family-based allocation to the employment-based one. The October Visa Bulletin puts this at 121,500 visas.

When added to the 140,000 visas, this means that 261,500 employment-based visas are available for the fiscal year 2021, which runs from October 2020 to September 2021.

What does this mean for EB-5?

As the acronym suggests, EB-5 is the fifth employment-based visa category. It targets foreign investors with an offer of permanent residency (Green Card) for a $900,000 investment that creates ten American jobs in a Targeted Employment Area. Learn more.

EB-5 is limited to 7.1% of the total employment-based visas available in any given year. Normally this is almost 10,000 visas, but in the bumper FY2021 this will jump to 18,566 visas.

18,566 EB-5 Visas Available in FY2021

Each country is subject to an annual cap. No country can exceed more than 7% of the total EB-5 visas available. This is determined by country of birth (unlike the E-2 Treaty Investor Visa, which takes account of country of current citizenship see: E-2 plus Citizenship by Investment)

Normally, that means each country is subject to an annual quota of around 700 visas. Note: that the number of visas does not equate to the number of applications. A single application and investment can cover the applicant, a spouse, and dependant children under 21. Each individual would be counted separately in terms of visas but together as one in terms of applications.

The 2021 rollover means 1299 visas available to each country in this fiscal year. While most countries don’t come close to this annual limit, three countries are or have been severely impacted by this: India, China and Vietnam.

EB-5 Country Quota of 1300 in FY2021

Demand for EB-5 visa from these three countries is especially high and has often exceeded supply. This is a result of their large populations and historically high levels of interest in emigrating to the United States.

When demand exceeds supply, the countries enter what is called visa retrogression and applicants face a waiting list. How this work in practice is detailed on our visa bulletin blog.

With more visas available, there is opportunity for China and Vietnam to make greater inroads into the current backlogs. This would significantly reduce waiting times. India has not faced retrogression since July, but it had been teetering close to a return to waiting list. The risk of retrogression would recede.

India and China also face visa retrogressing in other employment-based visa categories, including EB-1 for people with extraordinary ability and EB-3 for highly skilled workers. The waiting times in both these visa categories may also fall.

Ongoing Covid-19 Pandemic

Caveats remain. An increase in visa availability would need to be matched by an administrative capacity to cope. With the Covid-19 pandemic continuing, it is unlikely that business-as-usual will resume anytime soon.

This may mean that India, Vietnam and China are unable to make full use of the extra visa availability in 2021. Any unused visas would not be rolled over again.

Yet, the ongoing pandemic may also mean that family-based visas will not use up their full allocation in 2021 either. This portends further rollovers into the employment-based visa categories in 2022.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


November Visa Bulletin Analysis for EB 5 Investor Visa

November Visa Bulletin Analysis

The Department of State has issued the November visa bulletin showing little movement for Chinese- and Vietnamese- born EB-5 investor visa applicants continuing to face delays. All other countries remain “current” for EB-5, meaning there is no waiting list for a Green Card.

India has been “current” since July, but retrogression delays may return because demand for EB-5 has been consistently high in recent years. Indians planning an EB-5 petition should consider acting while the country is current. The US Citizenship and Immigration Services (USCIS) has changed the way it sequences EB-5 applications to benefit countries that are current over countries facing retrogression delays.

The Final Action Date for Vietnam crept forward two weeks to August 15, 2017, while China remained unchanged at August, 15 2015. The Final Action Date refers to whether there is expected to be a visa available within a quota system (or visas – plural – depending upon how many family members are included in the application).

The date in question here is the priority date. This is the date that the US Citizenship and Immigration Services received your initial EB-5 petition (I-526).

Visa availability is determined by a country quota. As with all the employment-based immigrant visa categories, no country is permitted more than 7 percent of the total visas available in any given year (approximately 10,000 for EB-5).

In the case of EB-5 that is just over 700 visas, determined by the primary applicant’s country of birth.

Visa Bulletin Final Action Dates for Employment-Based Categories

The visa bulletin also includes a Date for Filing. This refers to when you can submit your visa application to the National Visa Center, even though there might not yet be a visa available. For applicants outside the US, this additional date provides some extra notice to prepare the application documentation. For applicants inside the US adjusting their status, they may be able to apply for a work permit based on the Date for Filing.

Most countries have current filing dates, with the sole exception of China, which has a Date for Filing four months sooner than its Final Action Date.

Visa Bulletin Date for Filing for Employment-Based Categories

The EB-5 program provides the opportunity to obtain Green Cards for a $900,000 investment in a Targeted Employment Area (TEA) in the United States. The investment must sustain ten American jobs. Outside of these TEAs, the required investment is $1.8 million. A single application can cover the primary applicant, a spouse, and any children under the age of 21.

EB-3 Visas – Permanent Residency for Skilled Workers

China and India remain in visa retrogression in the EB-3 visa category for highly-skilled workers. The EB-3 visa is similar to the H-1B visa which is especially popular in India. However, as an immigrant visa, the EB-3 offers permanent residency whereas the H-1B visa does not. H-1B is renewable up to a limit of six years, after which the holder needs to explore alternatives like EB-3 and EB-5, or leave the country.

The Date for Filing is significantly more recent than the Final Action Date for Indians in particular. This time gap has implications for certain applicants’ ability to work in the United States. This relates to people already in the US seeking adjustment of status. If you are in this position, we advise you to speak with one of our attorneys.

EB-1 Visas

Similarly, people born in India and China are the only two groups facing delays in the EB-1 visa category. The EB1-A visa targets individuals with extraordinary abilities in their field, the EB1-B visa targets academics, and the EB-1C visa is for multinational managers and executives.

People faced with retrogression in these categories should contact us. There are non-immigrant counterparts that are not subject to quotas and could provide a pathway to these immigrant (permanent residency) categories at a later stage. The EB1-C, for example is similar to the non-immigrant L-1 visa, and the EB1-A is similar to the non-immigrant O-1 visa.

Non-immigrant status has advantages to people who do not wish to obtain permanent residency. For example, US permanent residents are liable for tax on income earned outside the US. This does not apply to non-immigrant visas. People seeking permanent residency are encouraged to arrange a consultation with our tax attorney as early in the process as possible.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.


Am I a Citizen of Country that Holds an E-2 Visa Treaty with the United States?

The E-2 Treaty Investor Visa is one of the most sought-after US visa categories. Little wonder. The E-2 visa allows a person to own and operate a business in the largest economy in the world.

It can be renewed indefinitely provided the underlying business is in operation and still performing; Spouses can apply for work authorization outside the business; Dependent children can join you in America; You are not taxed in the same way as citizens and Green Card holders; You are free to travel to and from the United States; You can opt for an off-the-shelf franchise business or start your own.

Yet to qualify for this popular visa, you need to be a citizen of a country that holds a relevant treaty with the United States. Check out the list below to see if you are eligible.

List of E-2 Treaty Countries

Note: If your country is not on the list, Read on! We can still help.

  • Albania
  • Argentina
  • Armenia
  • Australia
  • Austria
  • Azerbaijan
  • Bahrain
  • Bangladesh
  • Belgium
  • Bosnia & Herzegovina
  • Bulgaria
  • Cameroon
  • Canada
  • Chile
  • Colombia
  • Costa Rica
  • Croatia
  • Czech Republic
  • Democratic Republic of Congo
  • Denmark
  • Egypt
  • Estonia
  • Ethiopia
  • Finland
  • France
  • Georgia
  • Germany
  • Grenada
  • Honduras
  • Ireland
  • Israel
  • Italy
  • Jamaica
  • Japan
  • Jordan
  • Kazakhstan
  • Kosovo
  • Kyrgyzstan
  • Latvia
  • Liberia
  • Lithuania
  • Luxembourg
  • Macedonia
  • Mexico
  • Moldova
  • Mongolia
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Paraguay
  • Philippines
  • Poland
  • Republic of Congo
  • Romania
  • Serbia
  • Senegal
  • Singapore Slovak Republic
  • Slovenia
  • South Korea
  • Spain
  • Sri Lanka
  • Suriname
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Togo
  • Trinidad & Tobago
  • Tunisia
  • Turkey
  • Ukraine
  • United Kingdom

If your country is on the list then you can go directly to an E-2 Visa. If it is not on the list (and more than half the world’s population are citizens of countries that are not on the list), then you need to become a citizen of a country that is on the list first.

You see, unlike the EB-5 investor visa program, E-2 is determined by your country of citizenship. (While citizens of all counties are eligible for the EB-5 visa, each country is subject to an annual quota. Which EB-5 country quota you are subjected to is dependent on your country of birth rather than country of current citizenship.)

But with E-2 visa, obtaining dual citizenship or a new citizenship will make a difference to your eligibility.

So you need to become a citizen of one of the countries on the above list.

While several of these countries offer a pathway to citizenship, the timing and cost can be prohibitive. For example, you can invest your way to UK residency for £2 million. This sets you on a path to possible citizenship, that takes six years. You can reduce this time if you invest more. But even with a £10 million investment, it will still take 3 years to be eligible for citizenship.

That is quite the wait for the E-2 visa. Besides, if you ultimately looking to move to the United States and have such sums of money to invest, you might want to consider the EB-5 investor visa instead. Under this program, a family can all receive Green Cards in exchange for a $900,000 investment.

Yet there are two countries on the list that offer fast and cost-effective routes to citizenship: Turkey and Grenada. We have helped clients obtain E-2 visas via both countries. It takes a matter of months to complete the entire process.

Grenada offers citizenship in exchange for a real estate investment from $220,000 or a donation to the government of $150,000 (more depending on how many family members you are bringing). It takes less than three months to obtain the passport, you don’t need to visit during this process, and Grenada allows dual citizenship so you do not need to give up your existing citizenship (unless this is required by the other country).

Turkey offers citizenship in exchange for a $250,000 investment in Real Estate or a $500,000 in bank deposits held with a Turkish bank. The process takes only slightly longer and citizenship can be obtained in just a few months.

Both countries offer many benefits aside from the E-2 visa. Both are dynamic economies with considerable investment opportunities. Some of our clients prefer Turkey because it is an international transit hub often en route between their home country and the United States. Others prefer Grenada for its proximity to their new home in the United States.

A third option is Montenegro. It is newer and a bit more expensive that the other programs. It requires a minimum €250,000 investment in Real Estate as well as a €100,000 donation. Montenegro shares a border with the European Union and it is a candidate for membership.

Our attorneys can talk you through the whole process. Our clients who have pursued this route have found it surprisingly simply. To discuss your circumstances with our team, please contact us to arrange a free consultation.

This article is published for clients, friends and other interested visitors for information purposes only. The contents of the article do not constitute legal advice and do not necessarily reflect the opinions of Davies & Associates or any of its attorneys, staff or clients. External links are not an endorsement of the content.