China ranks at the 2nd position with the maximum EB5 Visa issued in the fiscal year 2024 (32.9%). The EB5 Visa is an immigrant Visa granted to Chinese citizens in order to gain permanent residency (green card) in the United States. The EB5 Visa requires an investment in the US Business, and creation of 10 full time jobs for the American citizens.
In this article, we will get to know about some ‘must know facts’ for China investors thinking about investment in the EB-5 Visa Program.
Program Overview
The EB5 Visa Program guarantees the investors with permanent residency and other benefits associated with the green card. The investment opportunity allows eligible Chinese investors to obtain the green card in return for a lawful permanent stay in the US. Since 2015, China has been the nation with the greatest number of EB-5 visa applications and issuances, according to U.S. DOS Reports of the Visa Office. Chinese investors most frequently apply for an EB-5 Visa in order to provide their children with an education in the United States, obtain a green card, and take advantage of greater financial opportunities in the US.
Things to Know Before Investing
Before diving into the world of investing, there are several key factors to consider. Understanding your financial goals, risk tolerance, and investment timeframe are essential. Similarly EB5 Visa Program Investment requires a huge capital and hence before investing one should be well aware of different factors which are essential:
- Timeline : According to a US Congress report on the EB5 Visa Program, the processing time for an EB5 Visa is about 50-70 months after the investment is guaranteed.
- Investment Amount : The investment amount may range from $80k(High Employment Area) to $105k (Low Employment Area). These investment funds can come in the form of daily wages,business profits,Loans etc.
- Additional Charges: Apart from the investment amount there are different other add on charges for the verification purposes of the VISA such as the form I-526 and Form I-829.
- Form I-526 : $3,657 (¥25,446.07)
- Form I-829 : $3,750 (¥25,965.37)
Benefits of EB5 Visa for Chinese Investors
- Permanent Residency
Chinese investors are granted permanent residence in the US, enabling them to live and work there permanently along with their dependents (spouses and children under 21). Chinese investors and their dependents(spouse/children) can apply for a US passport and vote with US citizenship. One of the main drivers of Chinese investors using EB-5 Visas is the opportunity to visit 186 countries without a visa using a U.S. passport.
- Education Quality:
Chinese investors want to give their kids better educational opportunities overseas. With famous universities like the University of California, Berkeley and the University of California, Los Angeles, the US is a popular choice for overseas education for children of Chinese investors. The taxes on tuition fees for foreign students is much more as compared to national students.
- Financial Stability :
The economy is a major motivator for Chinese investors as well. Chinese investors are shifting their capital abroad due to concerns about an impending economic slowdown (post pandemic) and a push for higher personal income taxes. EB-5 Visa In an effort to diversify and protect their holdings, Chinese investors are constantly searching for profitable opportunities to invest in American companies, stocks, and real estate.
Risks for Chinese Investors in EB5 Visa Program
Before investing in the EB5 Visa program Chinese Investors should make a note on the risks involved in the same :
- Eligibility: Children of the investors surpassing the age of 21 during the application are no longer considered the dependents.
- Investment Risk: Chinese Investors should review their investment options with due diligence in order to minimize their losses which could occur during ‘at risk’ investment asked by the USCIS. There are many fraudulent cases wherein Fraud companies contact these investors and ask them for money in which no case goes to the EB5 Visa Program.
- Retrogression: US dept. of States (DOS) showed retrogression for the EB5 visa Chinese Investors. Due to limited/reserved visas there can be backlogs and hence lead to delay in visa interviews and approval.
Post Covid Pandemic many chinese citizens are thinking of relocating themselves and their family to the US with a much better political and economical lifestyle. This investment opportunity can help them with permanent residency and to avail all the benefits.
