|
|
| U.S. Visas and Their Impact on Real Estate Sales |
|
|
|
With the worldwide financial crisis affecting most economies, some international buyers are taking this opportunity to buy a second home or business property in the United States.They hope for maximum appreciation now that residential and commercial real estate prices are depressed. Their interest in purchasing property in the U.S. may be job-related, a vacation home, or future retirement—all good reasons for purchasing a home or business in the U.S. at this time.
However, it is critical that your foreign client understand visa options—including E-2, EB-5, L-1 and H-1B visas—before buying. Your client will need to consult with an immigration attorney who understands immigration law and can competently offer options according to an individual’s financial situation and needs. This brief article provides an overview of the E-2 non-immigrant investor category, the L-1 intra-company transfer and the EB-5 immigrant entrepreneur.
The E-2 visa is a non-immigrant investor category. It is based on bilateral investment treaties and treaties of commerce that the U. S. has in place with certain countries. For Mexican nationals, the E-2 option was established under NAFTA and allows Mexican investors to put their funds in a business of their choice in the U. S. The purpose of this investment is entrepreneurial in nature, i.e., to create job opportunities for U. S. workers.
The amount of monies to be invested depends on the nature of the investment. There is no magic dollar amount. Rather, the investment must be sufficient to establish or acquire a business such as a restaurant, laundry, etc., and it must be an operating business or one close to opening operations.
Please note that the mere purchase of a home in the U.S. does not potentially qualify an individual for E-2 since this purchase is deemed to be passive. Additionally, at least 50 percent of the stock in the U.S. enterprise must be owned by treaty nationals. It allows the investor to apply for the E-2 visa in order to oversee his/her U.S. investment. If the E-2 visa applicant is a Mexican national, the visa can be directly applied for with the U.S. Consulate having jurisdiction over the applicant’s place of residence in Mexico. On the other hand, if the applicant is in the U.S., in valid non-immigrant status, he/she has the option of requesting a change of status to E-2 with the USCIS Service Center having jurisdiction over place of investment. The E-2 can be renewed in two-year increments for an unspecified period of time provided the invested business is viable.
The L-1 intra-company transfer visa is for an executive, manager or specialized knowledge employee who can document that, prior to the transfer to a U.S. company, he/she has worked with an overseas affiliated entity for at least one year within the past three years. The terms “executive, manager and specialized knowledge” are legally defined terms. For example, the L-1 could be a transfer of someone working for a European company who was given a promotion and transferred to the U.S. subsidiary or it could be someone establishing a wholly owned U.S. subsidiary of foreign parent. This visa requires an approved petition by the USCIS prior to visa application at a U.S. Consulate.
If a foreign company is opening a “new” office in the U.S., the initial L-1 petition will only be approved for one year with the possibility of extensions for L1As (executives/managers) for up to seven years and the L-1B (specialized knowledge) for up to five years. Moreover, the international manager/executive may fast-track green card application after the U.S. Company has been operational for at least one year.
The EB-5 immigrant entrepreneur visa applies to individuals from any country who are wealthy and willing to risk a substantial sum of money to obtain lawful permanent resident status (green card). In a nutshell, there are three options under the law: (1)the US $1,000,000 investor; (2) the US $500,000 investor; and (3) the regional center investor. Due to the complex nature of this immigrant visa category relative to accounting and immigration requirements, it is advisable for the prospective investor to seek assistance from a competent CPA and knowledgeable immigration attorney in assessing the options and risks in order to qualify.
The EB-5, the E-2, and L-1 offer derivative visa benefits to dependent spouse and/or children who are single and under the age of 21. The obvious effect is that these derivative family members will be able to accompany the principal applicant during their authorized stay in the U.S.
For the REALTORr®, information about these visas will make it easier to sell and lease properties to foreign individuals. By counseling your prospect of the need for advice from a knowledgeable immigration attorney and, if appropriate, a CPA, this should result in a favorable outcome for the REALTOR® and client.
* This article is based on a recent presentation given by Jose R.
Perez, Jr., Partner, Foster Quan, LLP, to the HAR International
Council. Mr. Perez is Board Certified in Immigration Law by the Texas
Board of Legal Specialization.
|
|
|
|
|
|
|
|
|