Visa Options for Investors AREAA Trade Mission to the Philippines. Presented by Jared Leung March 18, 2013

Transcription

1 Visa Options for Investors AREAA Trade Mission to the Philippines Presented by Jared Leung March 18, 2013

2 Goals Visa & Status Immigrant Visa & Nonimmigrant Visa B1/B2 Visitor Visa L Visa E Visa EB5 Investor Immigration

3 What is a Visa? A visa grants the holder permission to enter the U.S.

4 What is an I-94? The I-94 card controls the terms of stay and serves as evidence of lawful status. 4

5 Non-Immigrant Visas B1/B2 visitor visa H1B work visa L1 work visa F1 student visa Admission to the U.S. for a limited duration of time Activities must be appropriate for the visa category Non-immigrant intent generally required

6 Immigrant Visa U.S. permanent resident ( Green Card ) No restriction of activities No restriction of stay in the U.S. Work authorized

7 Identify your Clients Goals Immigrate to the U.S.? Ability to travel back and forth the U.S. and home country? Benefit for self? Benefit for families? Mixed goals Timelines

8 B-1 / B-2 Visitor Visa Enter the U.S. to investigate business opportunity Okay to visit investment sites, meet with lawyers, accountants, negotiate contracts Cannot work in the U.S. Apply directly at U.S. Consulates Show reasons to return to home country after trip to the U.S. Family, economic, social ties Show financial ability to stay in the U.S. Helpful to have traveled outside of home country before

9 Visa Waiver Countries 37 Countries Andorra Hungary New Zealand Australia Iceland Norway Austria Ireland Portugal Belgium Italy San Marino Brunei Japan Singapore Czech Republic Latvia Slovakia Denmark Liechtenstein Slovenia Estonia Lithuania South Korea Finland Luxembourg Spain France Malta Sweden Germany Monaco Switzerland Greece the Netherlands Taiwan (see note below) United Kingdom

10 L-1 Intracompany Transferee Visa Transfer key employees to U.S. affiliates or branches (new or existing) Must have one year work experience with non-us entity Approved for 1 to 3 years (new company only 1 year) Extension requires show of viability of company invoices, accounting records, inventory, rental agreement, photos of premises, payrolls, expenses reports, etc. L1A executive and managers Challenges for smaller companies 7 years maximum L1B employee with specialized knowledge Must know something unique about the company L2 spouse can apply for a work permit

11 E-1 Treaty Trader & E-2 Treaty Investor Visas Treaty Some treaties allow both E-1 and E-2, but some don t No life-time limit No specific investment amount requirement Substantial Non-marginal Manage the business and has qualification E2 spouse can work Not a green card Non-immigrant intent

12 Sample Treaty Countries Australia Taiwan Japan South Korea Singapore Thailand Germany Bolivia Chile Bangladesh Canada Sri Lanka Mexico Brunei Philippines Philippines Colombia

13 What is EB-5 Investment Immigration? 10,000 green cards are allocated each year for investors who meet EB-5 requirements Investor s spouse and children under 21 years old are covered Used commonly by: Retirees Business people who want their children to have opportunities to study in the U.S. International students with resources and business ideas Other entrepreneurs who want to invest in the U.S. and get green card along the way

14 EB-5 Investment Immigration Requirements Investment of Capital U.S.$1,000,000 U.S.$500,000 if investment is in (a) rural area or (b) targeted employment area Cash or other Capital Creation of 10 FT Jobs Engage in a New Commercial Enterprise New = Established after November 29, 1990 Active business for profit Cannot be passive investment real estate holdings, stocks Must have some managerial role in business

15 EB-5 Investment Immigration Personal Residence / Time-shares Okay to buy for long term investment or personal use, but not for EB-5 purposes Proposed special visa for people who owns homes in the U.S. Common EB-5 projects (Think Active business & Job Creation ) Hotel / Motel Car Wash Restaurant Mixed use office / commercial / residential property

16 Traditional Investment Establish a new business (after 11/29/1990) Save a troubled business or restructure an existing business (Okay with R.C. but rarely used) Save a troubled business Net Loss over 20% in last 12 or 24 month period Save ALL jobs (Must still meet creation of 10 jobs requirement) Restructuring must be substantial Direct creation of 10 jobs Consider business that requires labor (restaurant, hotel/motel) Employees must be legal in the U.S. Investor needs to have some managerial role in the business Have more control of the investment

17 Regional Centers Geographically linked units authorized by CIS for EB-5 purposes Real-estate and Loan projects Indirect and induced job creation permitted Investors do not need to actively manage the business (Limited partners ok) Investors do not need to live inside the regional center Feel more safe and secured Common misconceptions: Automatic approval from CIS Investors must still satisfy CIS requirements There is no risk or lower risk There is no need to prove job creation Current Sunset date: September 30, 2015

18 Steps and Estimated Timing Step 1: Submit application to CIS by filing Form I-526 (Est. 6-9 months). Step 2: After I-526 is approved, attend interview at U.S. Consulate in home country or submit I-485 application (Est months) Step 3: After successful interview or approval of I-485 application, investor becomes conditional permanent resident (temporary green card ) for 2 years Step 4: 90 days before 2 years expiration date, submit application to obtain permanent green card by filing Form I-829. Prove investment of requisite amount was made, investment went according to plan, and 10 jobs were created (Est. 1 year)

19 Tracing source of funds Common Challenges with EB-5 Every dollar must be legal and accounted for Loans or gifts from family are okay but CIS will demand to know the origination of the loans/gifts came from a legal source Bank loan is permitted if secured by assets not part of investment Transferring money to U.S. Traditional investment ability to maintain a business in the U.S. and navigate the U.S. law Regional Center investment usually locked in for at least 5 years Investment has to be at risk Guarantee of return is prohibited Timing of creation of 10 jobs still an open issue with USCIS

20 Relevant Recent Development Some RCs have failed and even Start-up visas proposal (raise or found to be fraudulent, drawing invest $100,000; create 2 jobs in attention to Chinese Government year 1 and 3 more in year 3 and investors U.S. Security and Exchange Commission (SEC) is involved Security check delays for some countries Closer scrutiny in both source and path of funds Talk of U.S. immigration reform

21 Keeping the U.S. green card Other Considerations Absence from U.S. less than 6 months usually ok Absence from U.S. for 6 to 12 months problems Absence from U.S. for more than 12 months loose green card through abandonment Eligible to apply for U.S. citizenship 5 years from date of attaining conditional permanent residence Tax consideration Children over 21 cannot receive green card as a dependent

22 Other Opportunities Don t have to immigrate buy a house in the U.S. for vacation perfectly okay under B1/B2 visa Buying properties purely as investment usually cash transactions Buying properties for children attending university in the U.S., using rental income to pay for children s education Giving money to children to immigrate through investment saving of tuition because children qualify for in-state tuition UCLA: $12,686 v. $35,564 UC Davis: $15,123 v. $38,001 Properties shopping trips One stop service approach housing, school district, shopping, rental returns based on sound analysis and statistics support Best source of referrals your clients

23 Leverage your International Contacts Understand your contacts Goals Understand your investors timing Understand your investors culture Emphasis on children s education Decision making time Superstitious numbers 4 & 8 ) Be a resource to your clients Do what you do best finding great properties

24 Thank You Very Much Questions? Contact Information Jared C. Leung Fennemore Craig, P.C East Camelback Road Suite 600 Phoenix, AZ Tel: Fax: Blog: