accommodate the new economic realities. Even so, migration
agencies are still in their early days in Brazil, although some
in the market are slowly beginning to recognize the migration
agent as a profession.
Perhaps given the absence of migration agencies, Brazilians
routinely use state-side immigration attorneys directly, or even
go at it alone. Local attorneys and accountants are often asked
about business structures that could allow for the possibility
of living in the United States, but typical solutions are short
term and transient; not permanent residency. While most local
Brazilian attorneys and accountants can suggest an offshore
tax efficiency structure to purchase a house or apartment in
the United States, very few have a thorough understanding of
the EB-5 program and its many investment structures. As in
China, migration agents could have a key role to play as on the
ground advocates for current and future EB-5 investors.
Best Practices for Building the Brazilian EB-5 Market
Chinese migration agents have been an important part of
the overall success of the EB-5 program. Unlike in China,
however, Brazil has no regulation at this time when it comes
to migration agents. With that in mind, EB-5 stakeholders
must examine and start out using best practices for what could
arguably be the future model for the industry.
Recognize Cultural Differences
One of the points to focus on with regional center partners
is that they must have a medium to long-term view of the
opportunity. They must understand that the Latin culture is
much different than Chinese culture. First, Brazilians tend to
be skeptical about everything, as though there is an angle that
they are not seeing. They want to understand all of the specifics
of the investment, the process and developing the necessary
trust takes time. Secondly, Brazilians tend to look at the EB-5
program as a possible opportunity to live in a safer environment
versus leaving for political reasons, as may be the case in China.
Even so, there are also similarities, such as providing a son or
daughter with the opportunity to study in the United States and
have the opportunity of a better start in life.
Establish a Strong Network
Establishing a strong network of migration agents, regional
centers, attorneys, accountants and other stakeholders is a
must. Given the vast geographic footpr int of Brazil, dissemination of the EB-5 program may be a challenge along with
making certain that agents follow best practices. As with any
new product in a new market all stakeholders must ensure
that consumer confidence for the program remains solid.
Similar to how program recognition has evolved in China,
positive press, word of mouth and real life stories are essential
as one participant passes along their experience to other family
members, friends and colleagues.
Regional centers together with industry experts must
dedicate the necessary time to cultivate this market and the
industry, as has been done in China and elsewhere. Did you
know that Brazil represents the sixth largest asset management
market in the world? We must have more industry-sponsored
events, more interaction from regional centers, developers,
attorneys, accountants and tax experts, etc. in the country to
bring awareness to the market. As with any new investment
product, the market must gain a basic understanding of how it
works in order for adoption to happen. Managing expectations
is essential as the country will need time to digest the information and understand the concept. There are definite challenges
to overcome, but many believe the market will prove to be
fertile territory for the EB-5 program.
WWW.EB5INVESTORS.COM
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