How to get US Residency & avoid the Green Card & Global Taxation.

Secure USA Residence without a Green Card and in just 7 Months

"Thank you to Andy J. Semotiuk, our partner US/Canadian Immigration Attorney, whose content from his recent Forbes articles, helped produce this post."

Getting residency in the U.S.A. isn't always easy and can take years to secure, but there are certain solutions that can quickly clear the way. One is being a member of a country that has an investment treaty with the United States.

What can you do if you are not a citizen of one of the 80 eligible countries that doesn't have an E-2 investment treaty with the United States? What if you have citizenship from the following countries like Syria, Lebanon, Libya, Nigeria, Sudan, Saudi Arabia, UAE, Iraq, China or Afghanistan? What can you do?

The solution is a simple one for those investors that can afford it, you apply for Citizenship by Investment in Grenada, a British Commonwealth country in the Caribbean, that can help you, because it has an E2 investment treaty with the U.S and strong relationship ties between both jurisdictions. You could qualify for an E-2 visa indirectly through Grenada. The process takes between three to four months to secure your Grenada Citizenship (A rigorous due diligence process is applicable) and then you can immediately apply for your US E2 Residency Visa. Grenada Citizenship can start from $150,000 USD

With the current climate in the Middle East and events such as the Qatar Blockade and the Trump Travel Ban, it makes practical sense for investors in the region to have a secure Plan B for their families with countries in the EU, North America, and Australasia.

What is an E2 Visa

The E2 Visa, in essence, allows you to invest into a real economy business in the United States, that creates jobs and has a solid business plan with decent revenue generation.

While the numbers aren't set in stone, the threshold for getting an E-2 visa is roughly $200,000 which is when the Department starts taking your application seriously.

Some additional considerations that the consulate makes when deciding if an application has merit is if the business investment will be big enough (think millions of dollars), whether the business will create a few jobs and if the business is innovative and may bring something new or invigorating to the U.S., like a blossoming Google, for example.

Below is a summary of the differences between the E-2 Investor visa and the traditional EB5 Green card to highlight why the E-2 visa may be a better choice for you as an investor resident.

E-2 Investor Visa Advantages

1. Quick processing times – just a few months
2. Investment - Roughly $200,000 U.S. or even less, depending on the business involved.
3. Control of Funds in investor's business – less stringent “due diligence” required.
4. Travel flexibility - less concern about maintaining domicile and physical presence in the country.
5. Immediate permission to work in the USA, the spouse can work anywhere, children can go to school and college at internal resident tuition rates.
6. Low legal Costs - Roughly $10,000 - $20,000 U.S.
7. Possible tax advantages - as a non-immigrant resident if the principal resident stays in the USA for no more than 122 days per year, there will be no tax on worldwide income (Please do seek tax advice on this).
8. Less paperwork- more flexible treatment of investor on compliance with rules

EB-5 Green Card Disadvantages

1. Slow processing time - two years or as many as seven or eight for backlog applicants eg. Chinese.

2. Investment - $500,000 U.S. for regional center projects, $ 1 million for direct investment option.

3. No control of funds invested in third-party projects with a regional center - heavy “due diligence” required.

4. Need to maintain “domicile” or 6 months a year within the USA and rigid enforcement of residence rules, which can be cumbersome for global investors and businesspeople

5. Waiting abroad for approval from Immigration - two plus years and as much as seven or eight if in their is a backlog.

6. High cost in legal fee's, approximately - $50,000 - $ 70,000

7. The possible for clouded judgment of promoters/agents and advisors due to considerable financial rewards for finding EB-5 investors.

8. More paperwork - severe enforcement of rules

9. Taxation on worldwide income of investor.

E-2 Disadvantages

1. Must be seen to be hands on with the business - a passive investment is not enough. Therefore must speak at least some English.
2. The immigrant investor’s U.S. presence is tied to the business success – the business must succeed.
3. You need to maintain a running business in order to keep your residency

EB-5 Advantages

1. Permanent resident status
2. No work requirement
3. Renewal of permanent residence cards every ten years.
4. Long-term certainty. A Path to US citizenship.

Let's consider a Syrian or a Lebanese individual as a typical example.

Fact One Syrian/Lebanese citizen ->> 18 Months to two years + more wait, for the EB-5 residency approval before getting your USA permanent residence.

Fact Two Syrian/Lebanese citizen ->>> EB-5 Status = Tax on worldwide income –investors want to avoid this burden.

Fact Three A Syrian/Lebanese citizen -> CANNOT get an E-2 visa -> USA (No treaty). Problem solved by securing Grenada Citizenship.

Conclusion: With Congressional changes coming to the EB-5 program that likely will increase the investment amount required and make it more difficult for an investor to apply, the E-2 visa may make a lot of sense. Careful consideration of the tax and citizenship questions need to be involved, however. Hopefully, these visa summaries will help you in that regard.

Gareth Brookes is the founder of   Brookes & Partners and is a Global Speaker & thought leader at international Immigration & Citizenship forums and advises nationals across the globe on tax residency & Citizenship investment strategies