EB-5: The American Dream Visa For South Africans

US immigration by investment on your radar? The US EB-5 is your ticket to owning the American Dream. But best move soon – the minimum investment requirement is expected to double from $500,000 to $1 million+ inside of 2019 still, making this a closing window of opportunity.

Find out more about your EB-5 investment options below, or contact us now for a free consulting session on how to obtain a fast tracked US Golden Visa.

EB-5 Pathways: What are your investment options?

South African applicants have two primary options for obtaining an EB-5 visa by investment:
1) An EB-5 Regional Center Investment (typically priced from $500,000+)
2) An EB-5 Direct Investment (typically priced from $1 million+)

Discover the pros and cons of each of these green card investment pathways below:

 

EB-5 Regional Center Investments

A minimum of $500,000 must be invested in a government approved Regional Center project for a period of 5 years. Conditional green cards are typically issued for primary applicants and their family dependents within a period of 18 months, however there are also a number of fast track options available.

Regional Center investment are typically pooled to finance projects such as new hotels and large residential or commercial complexes. Foreign investors also have the choice to invest in the manufacturing, hospitality, medical service or agricultural sectors in order to meet the requirements for obtaining a US investment green card.

Another benefit of an indirect Regional Center investment is the fact that the job creation impact is calculated on an indirect basis, removing the onus on the investor to employ the requisite number of employees directly.

While your capital is required to be at risk during the entire application process, the investment is typically returned to you after 5 years of your entry into the US. In instances where third country applicants’ native jurisdictions are subject to application regression, as is the case with Vietnamese nationals, this period is typically longer.

A key benefit of a Regional Center investment is that it is a passive, indirect investment requiring no active involvement in the project or enterprise being invested in. A con is that the money is being managed by a third party, which implies a lesser degree of control over how the investment performs.

EB-5 Direct Investments (New/Existing Enterprises)

For investors seeking to establish a new business, or invest in the expansion of an established US business, the EB-5 Direct Investment avenue may make more sense than a Regional Center investment.

The minimum investment required for the direct pathway is $1 million, unless the business being created or invested in is situated within a government specified Targeted Employment Area, or TEA. In such cases, the minimum investment requirement drops to only $500,000.

While this type of investment has the benefit of giving you more control, it also comes with the onus of proving the creation of 10 full time jobs (W-2 employment positions) for US nationals within 2 years of your visa petition being approved.

This typically requires the submission of payroll and tax submissions for the positions created. The same requirement also applies in cases where job losses are avoided as a direct result of the investment. If the business or enterprise is situated in a TEA, proof of this needs to be provided as well.

The Direct EB5 pathway also makes provision for investors seeking to pool their resources into a larger collective enterprise, provided that the individual investors still individually meet the 10 position job creation requirement, in aggregate. In the case of investment pooling, the minimum investment requirements remain the same – $500K inside a TEA, and $1 million outside of these areas.

Why now is a good time to apply for an EB5 Investment Visa

The US is undeniable an excellent place to live and do business, and the international demand for EB5 visas is massive. The Trump regime consequently looks set to increase the minimum investment required from $500,000 to over $1million – as early as before the end of 2019.

 That’s an increase from R7 million to over R15 million.

So if you’re serious about getting an American Dream visa, now is the time to take action.

Contact us now to request a free consultation.

Why choose Us

Golden Visas gives you access to some of the EU’s most acclaimed investor residency programmes. We specialise in both Golden Visa Programmes and residency by investment programmes, and work with the finest investment emigration specialists in the country.

Complete the form below to get in touch today. Annual client intake slots are limited, and EU residency legislation is rapidly becoming stricter, so get in touch now to avoid missing this closing window of opportunity.