Different kinds of EB5 Visa costs
Apart from the investment, there are many add-ons to the EB5 Visa due to various services. The add-on costs are as follows:
- The EBB 5 minimum investment capital
- The administrative fee for the regional centers
- I-526 petition filing fee
- I-485 application processing fee
- I-829 filing fee
- Immigration lawyer legal fee
- Tax on money invested
- Relocation and travel expenses
- Document translations
In the following sections, we shall discuss all these additional costs in detail.
EB5 minimum investment capital
The EB5 investment is your biggest and most important cost required to get the EB5 Visa. It is the minimum investment that you are required to invest in the US economy to be eligible for an EB5 Visa. The necessary investment to qualify for the EB5 Visa is $1,8000. However, if you are investing in a Targeted Employment Area (TEA), then the investment amount required is $900,000.
An area is called a TEA if it is a rural area or has a high unemployment rate. If you are keen to learn more about the TEA, go through our EB 5 investment visa in the USA article. The business that you invest in must be for profit and can be one of the following:
- Business trust
- Joint venture
- Own company
- Sole proprietorship
- Other privately or publicly owned structure
Investment rule change
If your petition is filed prior to November 21, 2019, then the minimum investment is at least $1 million, and for TEA it is $500,000. If it is after this date then the investment is at least $1.8 million, and $900,000 for TEA investment.
Administrative fees for the regional centers
To be eligible for the EB5 Visa, you need to either make a direct investment or invest in a regional center. A direct investment is where you invest in your own business, purchase an existing business, or invest in another business. The regional center is a business entity, that develops bigger projects, such as resorts and other major development projects. Regional centers are nominated by the USCIS, to accumulate EB5 investment funds from multiple investors. If you invest in the regional centers, you will be classified as a limited member with voting rights and other similar rights.
Your role in the management and operations is very limited. The managing directors will take care of EB5 job creation, managing business operations, and other management tasks. The regional centers charge a certain administrative fee to manage the projects. The administrative fee ranges from $50,000 to $70,000
I-526 petition filing fee
The I-526, also called the Immigrant Petition by Alien Entrepreneur, is filed to show that you have invested the required amount in a suitable EB5 project or are in the process of investing.
These investment projects must be a part of a new commercial enterprise and can be either direct investments or through regional centers. The immigration attorney files the I-526 petitions on your behalf. The processing fee is $3,675, which includes the investor and the dependants. You will receive a notification of the status of your filing after a period of 29 to 50 months.
If you opt for direct investment, then you are required to submit the EB5 business plan while filing your I-526. It is recommended to contact a company that is an expert in creating the EB5 and immigration business plans due to the specific requirements. The EB5 business plan usually costs $3,500. If you opt to invest in the regional centers (Targeted Employment Area), the regional center itself will provide you with the business plan and all the other required project documents.
I-485 application processing fee
The I-485 application is filed upon the approval of I-526. By filing the I-485, you can adjust your status within the US and acquire a conditional permanent residency. You and each of your dependents must file the I-485 petition individually.
This petition demands each of the applicants to disclose their biographical information, which helps the USCIS determine if they are eligible for permanent residence or not.
The immigration attorney files the I-485 petitions on your behalf. The processing fee for the petition is $1,140, with an additional $85 for the biometric services. If the dependent is under 14 years of age, then the processing fee is $750. The biometric charge is waived for applicants above 79 years and below 14 years of age.
I-829 filing fee
The I-829 is filed as the last step in attaining lawful permanent resident status in the United States. It is considered evidence that you have successfully met all the requirements listed by the USCIS.
Upon the approval of I-829, the conditional residency is changed to permanent residence for you, and your dependants (spouse and unmarried children under the age of 21).
The immigration attorney files the I-829 petitions on your behalf. The filing fee is $3,750, and an additional biometric processing charge of $85. The processing time for the I-829 application is 24.5 months to 45 months. Upon the approval of the application, you will be asked to attend an interview with the USCIS.
Immigration lawyer legal fee
The job of an immigration attorney is to verify the business structure against the EB5 requirements. The primary focus is to ensure that your source of funds is compliant. The immigration lawyer fees for the regional center EB5 investment are considerably less than for the direct investment. The lawyer fee is to file all the paperwork and the cost will depend on the firm you hire.
Tax considerations, relocation, and travel expenses
Foreign nationals with EB5 Visas are considered to be temporary visa holders. You are subjected to US tax on your worldwide income and are required to disclose your foreign assets and accounts to the IRS.
Before reporting your worldwide income and investment to the US government, you must take the Substantial Presence Test (SPT), to determine how many days you have resided in the US in the past three years. The tax rules for the EB5 Visa are very complicated. It is recommended to consult a tax attorney to evaluate the tax consequences of getting a green card.
You must also consider the travel and relocation costs if applicable. At a minimum, you must plan your budget for one trip to enter the US to get a conditional green card. However, you need to take into consideration the costs of multiple trips to the US.
While applying for the EB5 investor visa, you will need to submit many different documents, including foreign bank statements, birth certificates, and so on. The documents in languages other than English must be translated to English with the help of a certified translator before you submit them to the USCIS. You must work with a certified document translation company and their fees will vary from firm to firm and on how fast you need the documents to be translated.
The EB5 is a wonderful opportunity for foreign investors to get a green card in the United States. The Eb5 Visa process is complex with many steps, and there are multiple fees that you will need to consider. The EB5 immigrant visa is the fastest way to get US citizenship, it saves you time and gives you a chance to invest in the US economic growth. American citizenship is the real-valued prize payout, depending on your investment. Also, holding the most powerful passport in the world is very prestigious. Refer to the US passport ranking article to understand why according to the new Global Passport Index, the US passport is considered the most powerful passport in the world. The investment through the EB5 Visa offers small returns gain as a profit.
Frequently asked questions
How do I as an EB5 investor get my money back?
You can expect your money back when your borrower or developer develops and executes the development projects successfully that you invested in through the regional centers.
You must understand that you are making an equity investment in the New Commercial Enterprise (NCE), which is making the loan. Hence, the investment returns are dependent on two results, the repayment of the loan by the Job Creating Entity (JCE), and the liquidation of the NCE by the manager.
Can I take a loan to make an investment in the EB5 Visa to make it more affordable?
Yes, you can take a loan to make an EB5 investment. Refer to the EB5 Visa requirements article to know more.
How much does an EB5 Visa cost?
In addition to the investment, there are many other additional EB5 Visa costs that you have to take into consideration. The add-ons include administration fees, petitions filing fees, legal fees, tax considerations, relocation expenses, and document translation charges.