Questions and Answers > EB-5 Requirements

When does an EB-5 investor become a U.S. taxpayer?

My I-526 has been approved, but I have not yet undergone consular processing, and thus still am not in the United States. When exactly will I be expected to pay U.S. taxes? For example, will it be as soon as I am interviewed by the consulate, or once I receive my immigration visa in my home country (but have not yet entered the United States), or after I enter the United States with my immigration visa?

Answers

• Denyse Sabagh

  Immigration Attorney

  Answered on November 19, 2014

  You are subject to U.S. taxes and are required to pay tax on your worldwide income once you enter the U.S. as a conditional permanent resident.

• Steffanie J Lewis

  Immigration Attorney

  Answered on November 17, 2014

  After the I-526 petition has been approved, the U.S. consulate will notify you of the date and time to come for an interview. Assuming approval at the interview, the U.S. consulate will have an EB-5 immigrant visa placed in your passport. Usually, the visa will be valid for six months, during which period of time you may enter the United States as a conditional lawful permanent resident. Upon entering, you must comply with all applicable tax requirements including, but not limited to, income tax.

• Salvatore Picataggio

  Immigration Attorney

  Answered on November 10, 2014

  It may depend on when your funds are released to the project as well.

• John J Downey

  Immigration Attorney

  Answered on November 10, 2014

  To the best of my knowledge, the date of issuance of the green card begins your taxable period. Might want to check with a CPA.

• Sufen Hilf

  Immigration Attorney

  Answered on November 10, 2014

  When you enter the United States as a permanent resident.

• Ting Geng

  Immigration Attorney

  Answered on November 10, 2014

  You are expected to file your tax return by mid-April of the following year after you enter into the United States with an immigrant visa. If you are in the United States after your I-526 is approved and you want to adjust your status instead of going back to your home country to apply for an immigrant visa, you are expected to file the tax return by mid-April of the following year after your I-485 is approved. Simply put, you need to file your tax return by mid-April of the following year after the starting date on your temporary green card.

• Julia Roussinova

  Immigration Attorney

  Answered on November 10, 2014

  Generally, you are a U.S. taxpayer (U.S. nonresident income tax return) for any dividends or distributions you receive from a project or business in which you have invested as EB-5 investor before you become a conditional permanent resident. In your case, you become a conditional permanent resident when you are admitted to the United States upon inspection at the border when you arrive and enter on your immigrant visa (issued in your passport during consular process). Once you become a conditional permanent resident, you are a U.S. taxpayer (U.S. resident income tax return) on your worldwide income.

• Lana Kurilova-Rich

  Immigration Attorney

  Answered on November 10, 2014

  You should plan on becoming a U.S. taxpayer from the time that you enter the United States with your immigrant visa. If you come this year, you should be able to claim the nonresident status for most of this remaining 2014. If you come in 2015, obviously, you were not a U.S. resident for tax purposes in 2014, so this year will be a non-issue, but 2015 will be a taxable year for you.

• Melanie Yang

  Immigration Attorney

  Answered on November 10, 2014

  You will become a U.S. taxpayer only after you entered the United States with an immigrant visa.

• Anthony Korda

  Immigration Attorney

  Answered on November 10, 2014

  Ordinarily tax residency begins once you become a permanent resident. This is the point at which you enter the United States and declare domicile, i.e. after you have had the visa interview and have received the immigrant visa. However, tax residency and residency for immigration purposes are different and you may incur certain tax liabilities as a result of your investment. You should seek more detailed advice from a tax attorney prior to declaring domicile.

• Shahzad Q Qadri

  RC Creator

  Answered on November 10, 2014

  You will become a tax payer upon entering the United States and becoming a permanent resident.

• Lynne Feldman

  Immigration Attorney

  Answered on November 10, 2014

  After you enter the United States is when you become a U.S. permanent resident. Prior to that, any tax obligation would be because of U.S. earned income and you should consult an international tax person on this (for example if your project has generated dividends or other K-1 partnership income for you.)