The EB5 visa costs for filing include $3,675 for Form I-526, $1,140 for Form I-485 when adjusting status in the US, and $3,750 for Form I-829. The EB5 visa program is an attractive option for foreign investors seeking permanent residency in the United States but can be costly. In this blog, we provide a detailed breakdown of the expenses of obtaining an EB5 visa and offer tips for minimizing costs. Here are the subheadings we will cover in this blog:
Filing Fees for EB5 Visa Application
Filing fees are one of the main expenses of obtaining an EB5 visa. Here are the filing fees for each step of the process:
- Form I-526 filing fee: $3,675
- Form I-485 filing fee (if adjustment of status is filed in the US): $1,140
- Form I-829 filing fee: $3,750
In addition to these fees, additional costs may be associated with filing your EB5 visa application, such as translation fees, travel expenses, and document fees. It's important to consider these additional costs when budgeting for your EB5 visa application.
Investment Requirements and Associated EB5 Visa Costs
One of the primary requirements for obtaining an EB5 visa is making a qualifying investment in the United States. The minimum investment required is $900,000 if the investment is made in a targeted employment area (TEA), or $1.8 million if the investment is made outside of a TEA. Here are some of the costs associated with making an EB5 investment:
- Investment Capital: $900,000 to $1.8 million
- EB5 project Fees: Varies depending on the project, but can include due diligence fees, administrative fees, and other expenses
- Escrow Fees: If the investment is made through an escrow account, there may be fees associated with this service
- Securities and Exchange Commission (SEC) Fees: Depending on the nature of the investment, there may be fees associated with SEC compliance
It's important to note that making an EB5 investment involves risk, and a return on investment is not guaranteed. Therefore, it's important to thoroughly research any EB5 investment opportunity and consult with an experienced immigration attorney before making any investment.
What Are the Categories of EB5 Investments
The EB-5 Immigrant Investor Program is a United States visa program that provides a path to permanent residency for foreign investors who make a substantial investment in a new commercial enterprise in the United States. Under the EB-5 program, there are two categories of investments that an investor can make:
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Direct Investment
In this category, an investor makes a direct investment in a new commercial enterprise, which can be either a new business or an existing business that is restructured or expanded in a way that creates new jobs. The investment amount is at least $1,800,000 for this category or $900,000 if the investment is made in a targeted employment area (TEA).
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Regional Center Investment
A regional center is a USCIS-designated entity that sponsors investment projects and allows investors to invest indirectly in a new commercial enterprise. The regional center investment allows the investor to invest in a pooled investment, including multiple new commercial enterprises. The investment amount is $900,000 for this category, but it must be made in a targeted employment area (TEA) project.
Both investment categories require that the investor's investment creates at least 10 full-time jobs for US workers within two years of the investor's admission to the United States as a conditional permanent resident.
Tax Considerations
There are several tax considerations for investors considering the EB-5 visa program. Here are some of the main tax issues to consider:
- Income Tax: As a US permanent resident, the investor will be subject to US federal and state income taxes on their worldwide income. It means that the investor must report and pay taxes on any income earned from the investment in the new commercial enterprise.
- Capital Gains Tax: If the investor sells his or her investment in the new commercial enterprise, he or she may be subject to capital gains tax. The tax rate will depend on the length of time that the investment was held and the amount of the gain.
- Estate Tax: If the investor becomes a US citizen and passes away, his or her estate may be subject to US estate tax. The current estate tax exemption is $11.7 million per person for 2021, but this amount is subject to change.
- State and Local Taxes: Besides federal taxes, the investor may be subject to state and local taxes, depending on where he or she resides.
Regarding the EB-5 visa program cost, several costs are associated with the program, including the investment amount, USCIS filing fees, legal fees, and administrative costs. The investment amount depends on the investment category. The direct investment category requires a minimum investment of $1,800,000, and the regional center investment category requires a minimum investment of $900,000 in a targeted employment area. Additionally, there are USCIS filing fees that vary depending on the type of petition filed, as well as legal fees and administrative costs associated with the application process
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Administrative and Legal Fees for EB5 Visa
In addition to filing fees and investment requirements, administrative and legal fees are associated with obtaining an EB5 visa. Here are some of the common fees you can expect:
- Administrative Fees: These include document translation fees, notary fees, and other miscellaneous expenses associated with the application process.
- Immigration Attorney Fees: Hiring an experienced immigration attorney to assist with your EB5 visa application can be a significant expense, but it's highly recommended. An attorney can guide you navigate the complex application process and ensure your application is complete and accurate. Attorney fees can vary widely depending on the attorney's experience and location.
- Regional Center Fees: If you choose to invest in a regional center, additional fees may be associated with this option.
Tips for Minimizing EB5 Visa Expenses
While the costs associated with obtaining an EB5 visa can be significant, there are some tips you can follow to minimize your expenses:
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Carefully Research EB5 Investment Opportunities
Before investing, thoroughly research the investment opportunity to ensure it is legitimate and has a good track record of success. It can help minimize the risk associated with investing.
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Work with an Experienced Immigration Attorney
While hiring an attorney can be a significant expense, it can also save you money in the long run by ensuring that your application is complete and accurate, which can reduce the likelihood of costly mistakes or delays.
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Consider Investing in a TEA
Investing in a TEA can significantly reduce the minimum investment required for an EB5 visa from $1.8 million to $900,000. It can save you a significant amount of money.
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Look for Cost-Effective Regional Centers
If you invest in a regional center, look for one with low fees and a good track record of success. It can help ensure that your investment is cost-effective and has a good chance of success.
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Plan Ahead
The EB5 visa application process can be lengthy, so planning and budgeting is important. It can help you avoid last-minute expenses or unexpected costs.
Key Terms for EB5 Visas
- Investment: The funds required to qualify for an EB5 visa.
- Minimum Investment: The minimum amount required to qualify for an EB5 visa.
- TEA: A targeted employment area that qualifies for a reduced minimum investment requirement.
- Regional Center: A designated organization that sponsors EB5 projects and offers investment opportunities to EB5 visa applicants.
- Filing Fees: Fees required to submit an EB5 visa application to the USCIS.
Final Thoughts on EB5 Visas
In conclusion, obtaining an EB5 visa can be costly, but by carefully budgeting and planning, you can minimize your expenses and increase your chances of success. It's important to work with an experienced immigration attorney to ensure your application is complete and accurate, and to thoroughly research any investment opportunities before making a decision.
With the right approach, the EB5 visa program can be an excellent way to obtain permanent residency in the United States. If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.
