EB-5 Tax Planning
While enjoying the immigration benefits brought by the EB-5 program, potential investors need to be aware of the tax liabilities they are subject to after becoming a U.S. permanent resident through EB-5. This is of particular importance for high net worth individuals who might have worldwide properties and income. Investors should understand that as U.S. citizens or tax residents, they are obliged to report their global income, real estate and other types of assets. Without proper pre-immigration tax planning, one might be faced with high tax liabilities and the issue of double taxation. The good news is that with smart tax planning, it is possible for EB-5 investors to effectively defer or reduce their U.S. tax liabilities. It is advisable that prospective investors seek professional consultation from U.S. and international tax professionals before initiating the EB-5 process.