How to choose the most suitable path between EB-5 and E-2 visas for overseas investment and residency in the United States?

The US has always been a popular destination for overseas investment immigration, attracting overseas investors seeking residency and business development. For applicants who intend to obtain US residency through investment, EB-5 and E-2 visas are currently the main choices. Although the two visas have their own characteristics, there are significant differences in investment requirements, residency benefits, and applicable populations. Choosing the appropriate path can help applicants achieve personalized immigration goals.

EB-5 Visa Overview

Applicable population and investment requirements The EB-5 visa was launched in 1990 and is designed for investors who wish to obtain permanent residency. Applicants need to invest at least $800,000 in a Targeted Employment Area (TEA) project or $1.05 million in a non-TEA area. This investment also needs to create at least 10 full-time jobs. The lower threshold for TEA is designed to attract capital to areas with high unemployment rates and promote economic development.

Residence rights and risks The significant advantage of the EB-5 visa lies in its “straight-through green card” feature. After successful application, investors and their families can obtain permanent residency and have the opportunity to further apply for US citizenship. However, the review process for this investment immigration program is more complicated and usually takes several years. At the same time, the investment needs to meet the “irrevocability” requirement, which puts higher requirements on the applicant’s risk tolerance and long-term planning.

E-2 Visa Overview

Target audience and flexible investment The E-2 visa is mainly aimed at investors from countries that have investment treaties with the US, such as Japan, South Korea, Germany, etc. Unlike EB-5, the E-2 visa does not have a fixed minimum investment amount, but requires that the investment funds be “reasonable” and actually invested in “real and active” enterprises. Specifically, the enterprise needs to have a certain operating scale, be profit-oriented, and actually operate in the US. This type of enterprise can be diverse, such as chain restaurants, retail, service companies, etc. The applicant needs to own at least 50% of the stock of the enterprise and have control over daily operations and management. The E-2 is suitable for investors who do not have a short-term green card demand but hope to establish and manage a business in the US.

Renewal Benefits and Restrictions One significant advantage of the E-2 visa is that it can be renewed indefinitely, usually for two years each time, as long as the enterprise continues to operate. However, it does not provide a green card and only allows the holder to work and live in the US. This makes the E-2 more suitable for applicants who do not pursue long-term residency or ultimate citizenship in the US. At the same time, the scope of application of the E-2 visa is limited to investors in bilateral treaty countries, and visa eligibility depends on the continuous operation of the enterprise, so it has certain limitations compared to EB-5.

How to choose between EB-5 and E-2 visas

When choosing between EB-5 and E-2 visas, the following factors can help make a wise choice:

Personal residency objectives

Investors who hope to obtain a green card are suitable to choose EB-5, which directly leads to US permanent residency. This visa provides a stable identity path for applicants who want to settle in the US for a long time. The E-2 visa is more flexible and suitable for investors who want to reside or travel to the US for a short period of time, usually not pursuing long-term residency.

Funding budget

The EB-5 visa typically requires an investment of $800,000 to $1.05 million, with a higher capital threshold more suitable for investors with a larger budget. The E-2 visa, on the other hand, does not require a specific amount and only requires a reasonable investment in an active business, making it more attractive to investors with more flexible budgets.

Project stability and risk tolerance

Risk preference: EB-5 requires locking funds in specific projects, with higher investment risks, suitable for investors willing to take on higher risks. The E-2 visa provides more flexibility, allowing investors to freely allocate funds between different projects.

Cross-border remittance: In this process, cross-border remittance services play an important role in helping investors efficiently and cost-effectively transfer funds from their home country to the US. For example, using BiyaPay , cross-border remittance can be easily realized, managing enterprise operating funds, integrating Localization transfer method, low handling fees, unlimited amount, fast arrival speed, safe and guaranteed, which can greatly improve investment efficiency.

National applicability

The E-2 visa is only available to citizens of countries that have signed bilateral investment treaties with the US. If the applicant comes from a non-treaty country, they can only choose EB-5. Therefore, EB-5 has greater advantages in terms of national applicability and is more suitable for global investors.

Overall, EB-5 is suitable for investors who pursue long-term residency, have a sufficient budget, and can bear higher risks; E-2 is more suitable for flexible investors who do not need long-term status, and everyone can choose reasonably according to their own situation.