EB5 INVESTORS M AGAZINE
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non-resident investor to move their wealth safely
between both countries, as well as an easier time
suing for relief in the U.S. court system.
NO NEED TO PHYSICALLY RELOCATE
& CUT TIES WITH YOUR HOMELAND
Permanent residency doesn’t mean an immigrant is
obligated to live in the U.S. permanently. While moving
to America on a long-term basis is the most common
reason for obtaining a green card, many Middle
Eastern investors have significant financial and family
interests in their homeland. They have no desire to
abandon them.
Stress to your clients that they don’t have to give
anything up or “exile” one of their children overseas to
manage their American interests in corpus. Immigrants
can come and go as they please and maintain their
residency status as long as they don’t stay outside the
country for more than one year at a time. And even that
requirement can be waived by applying for a two-year
re-entry permit. 2 In short, they can have their cake and
eat it too by maintaining their core business and lifestyle
back home, then simply visiting the United States a few
times a year to vacation and check up on their American
business interests.
THE PRICE IS LIKELY GOING UP
Criticism of the EB-5 program has increased among
some American politicians in recent years. It doesn’t
seem that the program will be cancelled anytime soon
but there is a chance of Congress raising the minimum
investment amount in the near future. Afterall, the
program’s financing thresholds haven’t changed since
it was founded in 1990. The Department of Homeland
Security in United States has formally recommended
raising the required investment for TEAs to $1.35
million, and that’s just to keep pace with inflation. 3
Other critics have called for even higher rates.
In any case, time might be running out for the current
investment levels. So if your client is skeptical of the
current investment level, gently point out that it might
be increasing a lot.
CHALLENGE TWO:
WHAT’S THIS ABOUT TAXES NOW?
Your traditional pitch probably includes a long list
of tax advantages investors can enjoy when putting
capit a l i n rea l est ate ver su s ot her i nvest me nt
opt ion s. L ower capita l g a i ns rates, w r it i ng of f
depreciation, no FICA taxes, 1031 exchanges and
other things but none of this is going to impress
a property developer from the UAE who is used to
zero income and corporate taxes.
So yes, such investors will only be swayed if they
buy into your previous arguments of diversification
a nd r i sk m a n age me nt . Howe ver, t he p ote nt i a l
market is incredibly diverse. The Middle East is
home to a vast number of HN WI prospects who
aren’t native to the region and have different goals
than the typical Saudi or Emirati millionaire. This
is especially true in the UAE, where just under half
of t he HN W I a nd UHN W I resident s a re foreig n
born. 4 They’re already immigrants to the country,
so you’l l f i nd a host of rea son s t he y m ig ht b e
interested in a backup U.S. green card.
For example, there’s a good chance your Emirati
prospect is actually an Indian CEO who will never
have t he cha nce to obta i n a n Em i rat i passpor t
but isn’t interested in going back to his countr y
a n y t i m e s o o n . O r s h e’s a L e b a n e s e p r o p e r t y
developer look ing to e x pand her operat ions
globally. Perhaps he’s a Pak istani businessman
w ho m a d e h i s for t u ne i n t he G u l f a nd h a s no
i nte nt ion to leave t he a rea, but wou ld love to
acquire U.S. green cards for his teenage children.
T h e o p p or t u n it i e s a r e e n d l e s s i n t h i s mu l t i-
cultural melting pot.