How much does an EB-5 visa cost?
While there is much discussion regarding investment amounts for Targeted Employment Areas within the EB-5 program, what is often overlooked are the additional fees associated with the overall EB-5 process. In this blog we will explore general TEA investment amounts and a closer look at these other inherent costs that must be considered in order to put together a comprehensive cost breakdown for potential EB-5 investors.
EB-5 Minimum investment Amount: TEA vs non-TEA
Regardless of whether you are considering a Regional Center or Direct EB-5 investment, you must determine whether or not your investment resides in a targeted employment area (TEA) as it drastically impacts your minimum investment requirement. The minimum capital requirement for TEA based projects is $900,000 and increases to $1.8 million if not based in a TEA.
Regional Center EB-5 Investment Costs
Administration Fees
The biggest advantage of the Regional Center (RC) EB-5 investment is that all the work and structuring required for an EB-5 project has already been accomplished for you. All associated costs required to be in accordance with EB-5 program including business plans, econometrics reports, attorney services and others are spread across all the project’s investors through a one-time administrative fee which range from project to project.
Immigration Attorney
Retaining an immigration attorney is critical for a successful EB-5 Investment. Your source of funds due diligence and I-526 petition, I-485 application filing, and I-829 petition will all require their services.
I-526 Petition
The US government has costs associated with your EB-5 investment as well. As of 2020, the I-526 filing fee is $3,675.
Adjustment of Status and Immigrant Visa Processing
Non-US Residents- Once your I-526 petition is approved, in order to obtain a conditional green card the filing fee is $345 per person associated with your investment with an Additional production and mailing fee of $220.
US Residents- You will file an I-485 application to adjust your status in the U.S for a fee of $1,140, not including the mandatory $85 biometrics fee per person, which have reduced fees for children under 14 and applicants over 79.
I-829 Petition
Removing conditions on residency and filing your I-829 petition will cost $3,750 and will cover all dependents as long as they enter the US at same time as primary investor, otherwise they will have to file their own I-829 petition and pay an additional filing fee.
Direct EB-5 Investment Costs
In addition to self-management and oversight of your investment, when pursuing a direct EB-5 Investment you are also solely responsible for all the fees that come with this particular strategy.
Administration Fee
No administrative fee required as you will be responsible for all costs associated with professional services to achieve EB-5 compliance.
TEA Report
You will be required to conduct your own TEA report on behalf of your project, which could total roughly $500 – $1,000.
Business Plan
Similar to the TEA report, an investor in the direct EB-5 scenario is responsible for obtaining an EB-5 compliant business plan. This cost can range from $2,500 to $10,000, or more, depending upon the nature of the business. Additionally, each business plan should be supported by independent, objective, and verifiable market research regarding the industry of the business. Obtaining a market research report is likely an additional cost.
Immigration and Business Attorneys
You will need to retain an immigration attorney for both personal immigration source of funds and filing in addition to investment project compliance. Structuring your business and ensuring securities compliance will require the consultation of other business related attorneys as well.
Travel and Relocation Costs
EB-5 investors will need to plan on traveling to the U.S. throughout their EB-5 process to remain program compliant and should begin evaluating all costs they will incur with regards to moving to and living within the country.
Taxes
EB-5 investors will certainly face new tax implications when they obtain a U.S. green card so should plan ahead and consider consulting with international tax and wealth managers to do so, which of course will come with their own independent service fees.
Conclusion
There are many costs to consider when evaluating EB-5 opportunities. For over a decade the experts at Dynaxe Capital have helped navigate and prepare clients for all costs that lie ahead- with no costs of our own, completely free of charge to you!
For more information, contact one of our EB-5 experts today!