Immigration attorneys suggest moving EB-5 investor visa fee to US before new remittance tax kicks in.
As visa woes continue for most visa categories especially for Indians wishing to immigrate to America, many stuck in the long line for work based or family green card backlog would feel that the investors had it easier.
And while it does still stand true to a great extent, an increased fee and other conditions introduced lately is making it tougher for Indians to look at the US as a welcoming destination offering smooth immigration.
The latest visa fee hike for EB-5 or the US investor visa has already created ripples in the investor community, but from April they will have to shell out even more charges to immigrate to US via investment.
Beginning April 1, there will be a 5% tax on the remittances out of India. Although, this additional tax would impact all visa categories, it will predominantly create a barrier for people investing in the EB-5 visa program.
In 2019, the EB-5 investor visa program, for the first time since the 1990’s – increased the minimum investment amount to $900,000.
With this increase in minimum investment, a 5% additional tax would mean that applicants would have to pay an extra $50,000, when they move money to an escrow account in the US to fulfill their application criterion.
Owing to this, it is recommended that people considering the program should start preemptively moving the money into an escrow account in the US before April 1, even if they don’t get their applications in by then.
Talking about this new charge, Mark Davies, Global Chairman, Davies & Associates LLC, says, “The changes to the tax on remittances is a reminder to Indians to carefully plan their tax position before making the move to the United States.”
“People seeking to emigrate who do not wish to pay this tax at source and rather account for it later may wish to move their money ahead of the new rules coming into effect,” he says.
“It is possible to preemptively move money into an escrow account in the United States until such a time as they are ready to proceed with emigration process.”
EB-5 investor program extension might result in ‘short spurt’ in applications (September 15, 2017)
LCR Capital Partners to host EB-5 Investor Day in Miami (July 13, 2017)
EB-5 investor visa program being extended by one week (April 28, 2017)