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What is the impact of investing more than the minimum capital requirement in an EB-5 project?

My best friend is the CEO of a real estate development company in the U.S. who is working with a regional center to look for EB-5 funds for his senior housing project. I am from Europe. While immigrating to the U.S. is not a must, I do not mind helping him out with some investment in exchange for a green card. I want to invest more than $500,000 but I heard almost every investor goes with the minimum investment. I am wondering if investing more will backfire and raise questions by USCIS? What is the impact of investing more than the minimum capital in an EB-5 project? Will there be any taxation issues?

Answers

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    If your EB-5 investment is more than the minimum amount, then this will not raise any questions with U.S. Citizenship and Immigration Services. During the EB-5 immigration process, the foreign national investor becomes a conditional permanent resident. Conditional permanent residents must pay U.S. taxes on their worldwide income. At the end of the EB-5 immigration process, you will become an unconditional permanent resident. Unconditional permanent residents must spend the majority of their time in the U.S. and must pay U.S. taxes on their worldwide income.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    You may invest more than the required minimum. Should be no adverse tax effect.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    While investing more than the minimum is unusual, it would be in compliance with the EB-5 rules and should be fine, assuming all of the other requirements are met. For specific tax advice, you should consult with a tax expert before investing.

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    Barbara Suri

    Immigration Attorney
    Answered on

    The regulation states a minimum investment; there is no mention of a maximum amount. It is my opinion that most people invest the minimum amount since the investment must be "at risk" and they do not want to risk more than is absolutely necessary.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    You can certainly invest more than the minimum of $500,000. It should not raise any legal issue with the USCIS even if there are any questions at all. If there is any impact at all, it will simply be that the project developer in question will have more money to fund the project. Last but not the least, there should not be any negative taxation issue as well.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    You are allowed to make an investment in any amount you wish as long as it meets the minimum EB-5 threshold. I would most likely advise that you separate your EB-5 and "other" investments into the company; you probably want to get better investment terms for the capital beyond $500,000. Retain an attorney to assist you.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    There is no impact to your EB-5 processing for investing more than the minimum. USCIS is only concerned about EB-5 investors investing at least the minimum.

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    Charles Foster

    Immigration Attorney
    Answered on

    The minimum $500,000 investment for projects located in a targeted economic area (TEA) is just that. While it would be unusual, you can invest as much money as you wish above the $500,000 level should you consider it a good sound investment and should it not have any adverse consequences. Your U.S. source income is always subject to U.S. taxation, but the amount of your investment does not determine the amount of your taxation. The investment amount is subject to zero taxation; only the income from your investment is subject to taxation. Obviously, the greater the investment, hopefully, the greater the income.

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