Understanding the Top 5 Work/Investor Visas for Foreigners

Understanding the Top 5 Work/Investor

Visas for Foreigners

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Planning from the startMain issues your clients should be aware of:

US Taxes Immigration

Taxes in U.S.Most foreigners can be taxed on their worldwide income, regardless of

their immigration status

Tax on worldwide income applies to individual's who have Physical Presence in U.S. Of:

183 days/year or more 120 days each year for 3 years

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General U.S. Visa Categories

Work VisasMay have immigrant intent, non-immigrant intent

or “dual intent”

Immigrant visas“Greencard”

Intent to reside permanently in U.S.

Non-immigrant VisasTemporary stay

Intent to reside temporarily in U.S.

Vs.

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Top 5 work/investor visas

B Visitor Visa – non-immigrant visa L- I Intra-Company Transferee Transfer – work

Visa H-I B Professional visa – work visa E-1 Treaty treaty trader – work visa E-2 Treaty Investor – work visa EB5 Investor visa – immigrant visa

(“Greencard”)

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B Visitor Visa

B I – Visitor for Business Visa, max 3 month stay.

B2 – Visitor for Pleasure (Tourist Visa), max 6 month stay.

Advantage of B visa: client's status can be changed and/or extended

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Visa Waiver Program No visa required for

nationals of some countries

Must complete ESTA prior to trip to US.

No extensions permitted

Andorra

Australia

Austria

Belgium

Brunei

Denmark

Finland

France

Germany

Iceland

Ireland

Italy

Japan

Andorra

Australia

Austria

Belgium

Brunei

Denmark

Finland

France

Germany

Iceland

Ireland

Italy

Japan

Luxembourg

Monaco

The Netherlands

New Zealand

Norway

Portugal

San Marino

Singapore

Slovenia

Spain

Sweden

Switzerland

United Kingdom

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L- IA VisaIntra-company Transferee

Client employed one year within the last three years at company abroad

In Managerial or Executive Position Company abroad needs to establish company in U.S.,

both entities need to be under same corporate control Company abroad needs to continue operations Dependents on L2: Spouse gets a work authorization

permit

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L- IA VisaIntra-company Transferee

Applicable to Potential Real Estate clients as follows:

Small company owner

Company abroad does not need to have the same operation as abroad; i.e. restaurant owner abroad can operate courier business in US

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L- IA VisaIntra-company Transferee

Company Structure:Shareholders

Shareholders

X X

Y

Y

Z

Z

Company Abroad Company U.S.

51%

Or

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L- IA VisaIntra-Company Transferee

Position of client needs to be Managerial or Executive

Manager: Manages the company or a

department Supervise the work of others Decision maker on daily

operations In charge of staffing the

company: hire/fire employees

Executive:

Directs the company

In charge of setting goals and company policies

Receives order from Board of Directors

Directs the operations of the company

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L- IA VisaIntra-Company Transferee

Sample Organizational Chart

Client needs to continue to supervise personnel in U.S.

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L- IA VisaIntra-Company Transferee

Advantages: Can be transferred to US company to work until term

of Visa Can work for the U.S. Company Family: children can attend public/private schools.

Spouse has open work permit Priority worker category for “Greencard”.

No Labor Certification Process & EBI => category is Current (No “Greencard” Backlog).

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L- IA VisaIntra-Company Transferee

Limitations:

Visa is issued for a maximum of 7 years

Can only work for the petitioning company

At end of 7th year has to leave if not processed “Greencard”

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L-IA VisaIntra-Company Transferee

Realtor opportunities of this visa:

Business brokering Lease/purchase of premises to operate

business Lease/purchase of home

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H-I B Professional Visa

Clients with a college/university degree or professional experience (equivalency)

Degree by Equivalency: USCIS recognizes I year college degree = 3 yrs of professional experience.

(12 years of professional experience = college degree)

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H-I B Professional VisaRealtor opportunities with this visa:

It is an alternative for client who has children over 21 with a degree, parent (in L-IA visa) can employ them

Dependents receive H-4, can study

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E-2 – Treaty Investor Visa

Client has to be national of Treaty country

Controls majority of company or 50% with control of entity

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E-2 – Investor VisaTreaty Countries

Argentina China Georgia Kyrgyzstan Pakistan SwitzerlandArmenia Colombia Germany Latvia Panama ThailandAustralia Congo Grenada Liberia Phillippines TogoAustria Costa Rica Honduras Luxemburg Poland Trinidad and

Tabago

Bangladesh The ChechRepublic

Iran Mexico Romania Tunisia

Belarus Ecuador Ireland Monacco Senegal TurkeyBelgium Egypt Italy Moldovia The Slovak

RepublicThe Ukraine

Bosnia-Herzegovina

Estonia Jamaica Mongolla Spain United Kingdom

Bulgaria Ethiopia Japan Netherlands Sri Lanka UzbekistanCameroon Finland Kazakhstan Norway Suriname Yugoslavia

Canada France Korea Oman Sweden

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E-2 – Treaty Investor VisaHow much $$ does the investor “need” to invest?

A “substantial” capital investment. It is not specified by regulations.

Capital has to be “at risk” Investment cannot be “Marginal” when compared to

the total investment. Cash investment should be 51% or more, unless is a property investment where it is common in industry to have higher amount of leveraging.

It will vary by case

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E2 – Treaty Investor VisaActivities of E2 client:

To “Direct and Develop” their investment => Control

Enterprise is or will be active E2 may be employed in key managerial and

specialist positions

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E2 – Treaty Investor Visa

Temporary status. No path to “Greencard” Visa is renewed indefinitely, as long as the

investor is actively making investments Family: children can attend public/private

schools. Spouse has open work permit

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EB-5 Employment Creation Immigrant Visa (“Greencard”)

Entrepreneur: invest $1,000,000 or $500,000 + employ 10 individuals

Regional Center (RC): can invest $500,000 + employ 10 individuals

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EB-5 - Regional Center Projects EB-5 Regional Centers are: Government approved entity, organization or agency;

Focuses on a specific geographical area of the United States;

Seeks to promote economic growth, increased regional productivity, job creation and domestic capital investment.

Investment requirement is USD $500,000 if a Regional Center is in a Targeted Employment Area (TEA), (a rural or high unemployment area of the United States).

Additional guidelines to the EB-5 Regional Center Program: Foreign investment into the Regional Center Program must be made prior to

submission of the EB-5 application.

All investment ventures are managed by various General Partnerships, which are authorized to sell Limited Partnerships in the program to foreign investors who wish to pursue permanent residency with a “Green Card” in the United States.

Requires the alien investor enterprise to create 10 direct or indirect full-time positions for U.S. Citizens, (unlike the regular EB-5 program that requires the investment to create a minimum of 10 “direct” jobs for U.S. Citizens).makes this program more attractive and popular among foreign investors.

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E2 – Investor Visa

Realtor opportunities of this visa:

Business brokering Lease/purchase of premises to operate

business Lease/purchase of home

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EB-5 Employment Creation Immigrant Visa (“Greencard”)

Client must invest $1,000,000 or $500,000 if rural or targeted employment area (TEA)*, and employ 10 individuals (directly or indirectly)

Can also purchase an existing business and increase it by 140% in net worth or employees; or 20% loss in net worth.

*experienced unemployment of at least 150% of national average rate

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EB-5 Employment Creation Immigrant Visa (“Greencard”)

Entrepreneur: invest $1,000,000 or $500,000 + employ 10 individuals

Regional Center (RC): can invest $500,000 + employ 10 individuals

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U.S. TaxesU.S. Taxes on worldwide income apply to:

U.S. Citizens and Legal Permanent Resident;and Those who meet Physical Presence Test, some

exceptions apply: F-I students.

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U.S. Taxes

□ Foreign Investment in Real Property Tax Act of 1980 (FIRTPA)

Applies to Foreign Sellers Sell property of more than $300,000 10% withholding Tax from Gross Sale□ Income Tax□ Gift Tax□ Estate Tax

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Business Entities

Sole Proprietorship Corporation: must elect C corp ( S does not

apply to foreigners) Partnership/Joint Venture Limited Liability Company