E2 Visa vs. EB5 Investor Immigrant Visa: A Comparison

By Sanwar Ali:

The journey to obtaining a US visa may often seem daunting due to the complex nature of immigration laws. With an array of visa types to choose from, it becomes crucial to look at the details of each category to make an informed decision that suits your individual circumstances. This article provides a detailed comparison between two popular visa categories: E2 Visa and the EB5 Investor Immigrant Visa. It further explores their unique advantages and disadvantages, processing times, and eligibility criteria.

Table of Contents

1. E2 Visa vs. EB5 Visa: An Overview
2. Nonimmigrant vs. Immigrant Visa
3. Nationality Requirement
4. Minimum Investment Requirement
5. Job Creation Requirement
6. Source of Funds
7. Processing Timeline
8. Work Authorization
9. Taxation
10. Ownership of Business
11. Time Spent in the U.S.
12. Conclusion

1. E2 Visa vs. EB5 Visa: An Overview

Before delving into the specifics, it is important to understand the fundamental differences between the E2 and EB5 visas. The E2 visa, also known as the Treaty Investor Visa, allows foreign nationals from countries that have signed relevant investment treaties with the U.S. to develop and operate a business of their choice. On the other hand, the EB5 visa, officially known as the EB-5 Immigrant Investor Program, offers a path to lawful permanent residency in the U.S. by making a substantial investment in a U.S. business and creating or preserving 10 full-time jobs for qualifying U.S. workers.

2. Nonimmigrant vs. Immigrant Visa

One of the principal distinctions between the E2 and EB5 visas lies in their immigration status. The E2 visa falls under the category of non-immigrant visas, meaning it is temporary and does not directly lead to a Green Card. Conversely, an EB5 visa is classified as an immigrant visa, granting the visa holder a Green Card and leading to lawful permanent residence in the U.S.

3. Nationality Requirement

While the EB5 visa is accessible to nationals from any country, the eligibility for an E2 visa is restricted to nationals of countries that have signed an investment treaty with the U.S. Therefore, nationals from countries like China, Russia, Brazil, and India, which have not signed an E2 treaty with the U.S., are ineligible for an E2 visa and might opt for the EB5 visa instead.

4. Minimum Investment Requirement

The minimum investment requirement for the EB5 visa is significantly higher than that for the E2 visa. The EB5 visa necessitates an investment of at least $900,000 in a designated Regional Center Project (fees are typically very high) within the U.S., while the E2 visa does not stipulate a specific minimum investment amount. However, the investment should be substantial enough to ensure the successful operation of the selected business.

5. Job Creation Requirement

The EB5 visa imposes a strict job creation requirement, mandating the creation of at least 10 new full-time jobs per investor for the investors to be approved for permanent residence. In contrast, the E2 visa does not explicitly necessitate job creation, although the investor’s business should not be marginal and must be capable of generating significant income.

6. Source of Funds

Both the E2 and EB5 visas require the applicant to demonstrate that the investment funds were obtained through lawful means. This could include income from employment, business ownership, investments, inheritance, or a gift. Under the EB5 visa and E2 visa, the investment should be "at risk" in the commercial sense, indicating that the return of investment funds cannot be guaranteed.

7. Processing Timeline

The processing time for the E2 visa is typically quicker than that for the EB5 visa, owing to the absence of a quota and backlog. The E2 visa can be obtained within months, while the EB5 visa processing time can extend to over two years, especially for nationals from countries with a high demand for this visa, such as China.

8. Work Authorization

The E2 and EB5 visas also differ in terms of work authorization. While E2 visa holders are confined to working for the investment business that served as the basis for their visa application, EB5 visa holders enjoy the flexibility of working for any employer in any position, operating their own business, or even retiring.

9. Taxation

Green Card holders, including those who obtain their Green Card through the EB5 visa, are subject to U.S. taxation on their worldwide income. In contrast, E2 visa holders can avoid taxation on worldwide income by limiting the number of days they spend in the U.S.

10. Ownership of Business

In terms of business ownership, the EB5 visa does not mandate a specific percentage of ownership in the U.S. business. However, to qualify for an E2 visa, the investor must own at least 50% of the business in which they invest.

11. Time Spent in the U.S.

The amount of time spent in the U.S. also varies between the two visas. While Green Card holders must generally spend at least 50% of their time in the U.S. to maintain their status, E2 visa holders can spend as much or as little time in the U.S. as they prefer. Spending less time in the U.S. can help E2 visa holders avoid taxation on worldwide income.

12. Conclusion

In conclusion, both the E2 visa and the EB5 Investor Immigrant visa offer distinct advantages and disadvantages, and the choice between the two will largely depend on your individual circumstances and immigration goals.

workpermit.com helps with US Work Visa: L1, H1B, E2, and O1 Visas

There are various types of US visas that individuals can apply for, depending on their circumstances. Some of the most common employment-based visas include:

• L1 visa: This visa is for intracompany transferees who work in managerial or executive positions or have specialized knowledge.

• H1B visa: This visa is for specialty occupations that require theoretical or technical expertise in specialized fields.

• E2 visa: This visa is for investors who have made a significant investment in a US business and, management or essential skills employees.  Only certain nationalities can apply.

• O1 visa: This visa is for individuals with extraordinary abilities in the arts, sciences, education, business, or athletics.

Workpermit.com is a specialist visa services firm with over thirty years of experience dealing with visa applications. For more information and advice, please contact us on 0344 991 9222 or at london@workpermit.com(link sends e-mail)