South America ranks as the third continent in the number of EB-5 visas issued in 2024, with a total of 354. Brazilian investors received the most significant number (157).
Brazil started drawing more attention in the EB-5 scene around 2015. Soon, the country became one of the top two countries—along with Vietnam—that witnessed the greatest increase in the number of issued visas between 2016 and 2017. That year, the country jumped to third place in the top-ten EB-5 visa-receiving countries, surpassing Taiwan and South Korea.
According to data from the U.S. State Department’s annual Visa Office report, the popularity of the EB-5 program among Brazilian petitioners remained strong until 2020, when the COVID-19 pandemic negatively impacted immigration matters worldwide. However, even during Brazil’s financial crises, the EB-5 program has remained a highly preferred means of obtaining a green card in the United States.
EB-5 visa statistics for Brazilian nationals
The surge in the number of petitions for the EB-5 visa from Brazilian nationals was a rather sudden development. While the country had never made it to the top-ten list of countries by EB-5 visa issuance before 2015, Brazil suddenly ranked fifth on the list with 150 total EB-5 visas issued in 2016. Brazil accounted for 5.2% of all EB-5 visas issued worldwide in 2019, becoming the largest source of EB-5 investors outside Southeast Asia.
Brazil is currently among the top 10 EB-5 markets in the world.
Why is EB-5 popular in Brazil?
The tendency of wealthy Brazilian individuals to relocate abroad is widely linked to political unrest, economic instability, and high crime rates. Better educational opportunities for investors’ children are considered key to the popularity of the EB-5 program, and this popularity is expected to grow among Brazilian nationals.
Regarding EB-5 investment options, unlike most investors from South America, Brazilian nationals tend to invest in smaller regional center projects. Some sources link this tendency to the influence of Brazilian culture, where human relationships are based on trust, and a hands-on approach that yields faster physical results plays an important role.
Are there any special benefits or challenges for Brazilian petitioners?
Potential investors from Brazil are expected to benefit from the new visa-availability approach in processing EB-5 petitions. Aside from this recent positive development, the strong ties between Brazil and the state of Florida are one of the special benefits Brazilian petitioners enjoy. For more than two decades, Brazil has exported technology and aircraft industry-related products to cities in Florida. This close trading partnership has resulted in a clear location preference among Brazilian EB-5 investors, making Miami a top choice.
Regarding the challenges facing Brazilian petitioners, moving their capital out of the country can be a major issue, similar to many other investors worldwide. The insufficient number of EB-5-specific local immigration agents can pose another challenge as the EB-5 community continues its efforts to raise awareness about the program in Brazil and throughout South America. On the other hand, potential Brazilian investors are advised to consider taxation regulations, as Brazilian nationals currently enjoy much lower tax rates compared to those in the United States.
Source of funds issues for Brazilian nationals
The Central Bank of Brazil, the regulatory financial body of the country, imposes a $ R$10,000 transfer limit on remittances from Brazil as of 2021. With these regulations, combined with inefficiencies in the bureaucratic banking system, relocating assets and proving a source of funds can be challenging for Brazilian petitioners, resulting in a higher rate of rejected I-526 filings than the global average.
Until recent years, the majority of Brazilian high-net-worth individuals had undeclared assets. This typically led to problems in their funding processes, but with an amnesty approved by Brazil’s Senate in 2017, many petitioners found the opportunity to regularize their status. More foreign asset voluntary disclosures are expected to come into effect in the future, which may help resolve some of the source of funds issues historically faced by Brazilian EB-5 petitioners.
What is the current retrogression situation?
Although Brazil has been among the countries with near-term backlogs predicted by the U.S. Department of State for a few consecutive years, the country has not suffered retrogression as of yet, according to the monthly Visa Bulletin.
What does the future hold for Brazilian EB-5 investors?
Brazil continues to be the most prominent EB-5 participant in the region. The future of this country as an EB-5 market remains promising.
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