What is an investor visa

An investor visa is a type of immigration permit granted by a country to foreign investors who make substantial financial investments in that country’s economy. It is a pathway to residency and potentially citizenship for the investor, their partner, and their dependent family members. This type of visa is often used as a means to attract foreign capital and business to the country.

What are the criteria for an investor visa?

The criteria for an investor visa vary by country but generally include a qualifying investment in a business or government bonds, proof of a legitimate source of funds, and a business plan demonstrating a commitment to create full-time jobs or stimulate economic growth. Some countries may also require investors to pass a health check, have no criminal record, and demonstrate proficiency in the country’s language.

How does an investor visa benefit businesses?

Businesses benefit from investor visas by gaining access to foreign capital, which can be used for expansion, innovation, and job creation. Additionally, foreign investors often bring unique skills, knowledge, and networks, which can provide a competitive advantage.

How can a company improve its chances of attracting investor visa applicants?

Companies can improve their chances of attracting investor visa applicants by demonstrating a strong potential for growth, profitability, and job creation. They can also highlight their commitment to corporate social responsibility, innovation, and diversity, which may appeal to certain investors.

What are some potential legal or compliance issues related to investor visas? Legal and compliance issues related to investor visas can include fraud, money laundering, and national security concerns. To mitigate these risks, countries conduct thorough due diligence on applicants, including checks on the source of funds, criminal background checks, and assessments of the proposed investment’s economic impact.

How can the success of an investor visa program be measured?

The success of an investor visa program can be measured by the amount of foreign capital it attracts, the number of jobs it creates, and its impact on economic growth. Other indicators of success can include the number of visas issued, the diversity of the investor pool, and the rate of visa renewals.

What are the differences between an investor visa and a work visa?

While both investor visas and work visas allow foreign nationals to reside in a country, their purpose and requirements differ. An investor visa is granted based on the individual’s capital investment in the country’s economy, whereas a work visa is granted based on an offer of employment from a company in the country.

Can an investor visa lead to citizenship?

In many countries, an investor visa can lead to permanent resident status and, eventually, becoming a US citizen, provided certain conditions are met. These conditions often include maintaining the investment for a certain period, fulfilling residency requirements, and demonstrating social integration.

What are some examples of countries that offer investor visas?

Many countries offer investor visas to attract foreign capital. Examples include the United States (EB-5 visa), the United Kingdom (Tier 1 Investor visa), Canada (Immigrant Investor Program), Australia (Business Innovation and Investment visas), and Portugal (Golden Visa).

How can I get an investor visa in the US?

To obtain an investor visa in the US, you can explore the EB-5 immigrant investor program or the non-immigrant E-1 and E-2 visas.

The EB-5 visa

The EB-5 program, administered by the U.S. Citizenship and Immigration Services (USCIS), is for foreign nationals willing to invest a significant amount of capital in a new commercial enterprise. The EB-5 immigrant visa allows foreign investors to obtain a green card and obtain lawful permanent residence in the US.

To get the EB-5 investment visa, you must contribute the minimum investment amount, which varies based on the location of the business and your level of involvement. There are two options: a direct investment and a passive investment.

In a direct investment, you, as the EB-5 investor, are directly involved in the day-to-day management and operations of the business you invest in. This route involves playing a role in decision-making, business strategy, and overseeing the enterprise’s activities. The minimum required investment for a direct investment is $1.8 million.

In a passive investment, you take on a more passive role since you are investing your capital in a project already managed through a pre-approved entity known as a regional center, which is responsible for the day-to-day operations.

Many regional center projects are located in targeted employment areas (TEA). These are designated areas with either high unemployment rates or rural areas. The minimum investment amount for TEA is reduced to $900,000 to incentivize investment funds in areas that need economic stimulation.

You can find more details on the EB-5 investor visa application process here.

E-1 and E-2 visas

Alternatively, you have the option to apply for E-1 and E-2 visas. These non-immigrant visas are for foreign nationals, along with their immediate families, who wish to enter the US to engage in international trade or invest in and manage a business.

These visas are part of the E category, reserved for treaty traders and treaty investors from countries that have treaties of commerce and navigation, or bilateral investment treaties, with the US.

Here’s a brief overview of each:

E-1 Visa (Treaty Trader Visa): The E-1 visa is for individuals and employees involved in substantial international trade. This trade can include the exchange of goods, services, or technology between the US and the treaty trader’s home country.

To qualify for an E-1 visa, an individual must be a citizen of a country that has an appropriate treaty with the US and be actively involved in international trade. There is no specific minimum investment amount, but the trade must be substantial and ongoing.

The E-1 visas typically last for a maximum of five years, and the holder can extend them in two-year increments. E-1 visa holders can also renew their visas if the trade continues and the treaty trader maintains their eligibility.

E-2 Visa (Treaty Investor Visa): The E-2 visa is for individuals who invest substantially in a US business and actively manage it. This investment can involve purchasing an existing business, starting a new one, or buying a franchise.

To qualify for an E-2 visa, an individual must be a citizen of a treaty country, make a substantial investment in a US business, and play an active role in its management. There is no specific minimum investment amount for E-2 visas, but the investment must be considered substantial and at risk.

E-2 visas can be initially issued for up to five years and are often renewable for an indefinite period as long as the investment and business operations continue.

E-2 visa holders’ spouses and unmarried children under 21 can also accompany them to the US and may apply for work or study permits.

Both E-1 and E-2 visas are a way for individuals from treaty countries to conduct business in the United States, and they can be advantageous for entrepreneurs, investors, and international traders.

Deel can provide support with obtaining E-2 visas. Our experts specialize in US immigration law and will check a candidates eligibility to ensure they qualify to become an investment visa holder and facilitate the application process. Book a consultation to kick-start the process.