The EB-5 Investor Visa Program offers a pathway to US permanent residency for those willing to make a significant investment. This program, established in 1990, provides a chance for individuals and their families to obtain a Green Card, extending the opportunity to spouses and unmarried children under 21. This article will guide you through the intricacies of this program, especially for Indian investors.
To be eligible, applicants must invest in a US-based project that creates at least 10 jobs. Typically, investors are guided by asset managers at regional centers approved by US Citizenship and Immigration Services (USCIS). These centers facilitate funding for developers, offering a lower-cost investment route. Direct investment is an option, although experts advise against it due to its higher risk profile.
As of 2022, the minimum investment amount for the program is $800,000. Indian investors can transfer up to $250,000 per year under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS). Married couples can pool their annual remittances, reaching a total of $1 million through transfers in March and April. Funds can also be gifted to a child’s US-based account, enabling the child to invest in an EB-5 project.
Once the investment project is approved, applicants can apply for a conditional Green Card by submitting Form I-485 or DS-260, if applicable. While awaiting the I-526E approval, the child might be eligible for a temporary work and travel permit. After generating the required 10 jobs, the applicant can apply for an unconditional Green Card within two years and potentially redeem their investment.
It’s important to be aware of the additional costs involved, including legal fees, which can range from $50,000 to $100,000. A 20% Tax Collected at Source (TCS) is also applicable on the remitted funds. However, this TCS can be adjusted against the individual’s tax liability or claimed as a tax refund when filing the Income Tax Return (ITR). Considering all these factors, the total cost of the EB-5 program can reach approximately $1.1 million (about 9 crores Indian Rupees).
The EB-5 program presents a unique opportunity for Indian investors seeking US permanent residency. However, it is crucial to conduct thorough research and consult with legal experts to navigate the complexities of the program and ensure a smooth application process.
