US Citizenship by Investment: What do you need to qualify?

The citizen status of the United States of America stands as one of the most desired statuses in the world. It confers many benefits on the holder, from providing access to one of the most powerful passports in the world to security and all the manifold opportunities available in the United States.

While the traditional route to U. S. citizenship is by naturalization after several years of residence, there exists another way for the wealthy: the program generally referred to as the U. S. Citizenship by Investment Program.

Here, find out how you can gain U. S. citizenship through investment, the process and the likely advantages and disadvantages to expect.

Understanding the U.S. Citizenship by Investment Program

Contrary to Europe and other parts of the world, there is no investment migration in the United States. Nevertheless, the closest is the route that most foreign investors agree to go through is through the EB-5 Immigrant Investor Program. For the investors and their immediate families, it offers a shot at a green card—a permanent US residency that upon fulfilling other qualifications that include the physical presence in the US, can lead to naturalization.

Also known as the immigrant investor program the EB-5 was developed by the congress in 1990 so as to attract capital from the international markets to boost the economy of the United States as well as create employment within the country. It provides a permanent residence, more or less as fast as the other visa channels.

Key requirements for the EB-5 Program

To qualify for the EB-5 program, there are several critical requirements that applicants must meet:

Minimum investment amount:

• Since 2024 the rates for the minimum standard investment is one US $ dollar. 05 million. Nevertheless, the minimum amount is lower in case of Targeted Employment Area (TEA), which is a rural area or an area with a high level of unemployment, and is equal to $ 800,000.
• Targeted Employment Areas are defined to promote investment in areas where there is requisite demand for development thus making it cheaper to investors.

Job creation:

• There must also be provision of full- time jobs for not less than ten citizens of the United States of America. Such jobs must be earmarked for creation within two years of issuance of a conditional permanent residence visa to the investor in the United States.
• Jobs may be direct or, in case of investment through a Regional Center that has been approved by USCIS, may also include both indirect and induced jobs.

Lawful source of funds:

• The investment capital has to be from a legal source thus the processes of certification of the funds have to be followed. This may include statements of income tax, business income, sales of any property, or will and inheritance.
• All the sources of funds must be reviewed to meet the regulatory standards of USCIS, especially because absence of proof on legal source of funding leads to rejection of the petition.

Active role in the business:

• The investor should also participate in the management of the business although this does not mean that he has to manage the business on a daily basis. In general, being limited partner in the enterprise is enough for compliance to this condition.
• EB-5 investments do not count passive investments where the investor has no participation at all.

Steps to obtain U.S. Citizenship by Investment

Selecting a suitable investment:

• The first step of the E-2 application process is to select a commercial enterprise for your investment. This could be an investment in a start-up or existing U.S. business, it can also take place through Regional Center Investment. So it is important for the investor to fund one of their economic projects, or they will lose your deposit. Regional Centers that allow multiple investors and pool money into a single new commercial enterprise are popular because this can help meet job creation requirements with more flexibility than each individual business.

Filing the I-526 petition:

• Submit Form I-526, Immigrant Petition by Alien Investor to USCIS after selecting an investment. This form requires information not only about the investment but also a proof that it complies with all program requirements, including job creation and lawful source of funds.
• I-526 petition processing time varies from case-to-case basis, usually taking approximately 18 to 24 months.

Conditional permanent residency:

• Upon I-526 petition approval, the investor and their dependents (spouse and unmarried children under 21 may become conditional residents for a period of two years.
• Such status is conditional on its investment and job creation requirements being met (for the duration of such time period – from hereinafter in order to keep it simple we will refer to the hereinabove discussed law as “LR or Luciano Requirements”.)

Filing the I-829 petition:

• The investor must file Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status before the end of two years conditional period. This petition provides proof of the investment was maintained and that required jobs were created or saved
• Once an I-829 is approved, it removes conditions from the investor’s green card to become a lawful permanent resident.

Applying for U.S. citizenship:

• After holding a Green Card for at least **five years**, including the two-year conditional period, the investor can apply for U.S. citizenship through the naturalization process. This involves filing Form N-400, passing an English language and civics test, and demonstrating continuous residency and physical presence in the United States.

Benefits of the U.S. Citizenship by Investment

1. Fast Track to PR:

The EB-5 program is one of the quickest ways to get a U.S. Green Card This is particularly useful as compared to some other visa types, which may take many years of waiting before they become current.

2. Inclusion of family members:

The investor´s spouse and unmarried children under 21 are will also qualify for Green Cards based on the same investment, meaning that all qualified family members can receive U.S. residency

3. In regards to U.S. education and healthcare access:

Permanent residents can use the U.S. education (public schools, in-state tuition at universities) and healthcare system

4. Potential for financial returns:

The investment may also receive financial returns should the business or project be successful over and above residency benefits.

5. No sponsorship required:

Greater autonomy in obtaining residency and citizenship: The EB-5 Regional Center visa eliminates the need for a U.S. employer or relative sponsorship from an existing citizens as is typically required with other green card programs on offer.

Challenges and Risks

1. High Minimum Investment: This pathway is only possible for people who have a lot of money because the minimum investment amounts are quite high.
2. Risk of financial loss: All investments will have a form of financial risk. Only, with the risk that if the business fails or does not create enough jobs for American workers (understandable), they could lose their money — and be shot at a Green Card.
3. Lengthy processing times: The EB-5 program is a faster way to get an American Green Card, but it can still take years with various stages of the process subject to delay.
4. Documentation Complexity: The application itself is the most involved, thanks to documents required as proof of how someone legally obtained funds. However, any incomplete information or discrepancies can lead to delays or even denial!
5. Changes in immigration law: U.S. immigration laws involve and can change thus modifying the EB-5 program, this could mean there might be increases for investment thresholds or changes to program requirements.

How can FRR Immigration help?

Navigating the complexities of the US Citizenship by Investment process requires expert guidance. FRR Immigration specializes in helping high-net-worth individuals and their families successfully navigate the EB-5 program. 

With extensive experience in global residency and citizenship programs, FRR Immigration offers personalized advice, comprehensive support, and end-to-end management of your application process.

If you’re considering U.S. citizenship through investment, contact FRR Immigration today to learn how we can help you achieve your goals.