EB-5 Green Card Application Surge: Rich Investors Are Flocking to EB-5 Investment Visa?

Driving factors behind the surge in EB-5 Green Card Applications

last updated Friday, June 28, 2024
#EB-5 green card #EB-5 category green card

John Burson

EB-5 Green Card Application Surge: Rich Investors Are Flocking to EB-5 Investment Visa?

CONTENTS

The United States is witnessing a surge in demand for its EB-5 green card. This comes from recent reforms and the country's lingering economic robustness. The EB-5 Immigrant Investor Program, established in 1990, enhances the American economy by encouraging job creation and capital investment among foreign investors. These investments are critical for financing infrastructure projects, creating employment opportunities, and helping economic growth. Changes in recent years have made it more appealing, and Henley & Partners anticipates that there will be net immigration of 3,800 millionaires to the USA by 2024.

The United Arab Emirates (UAE) is home to many millionaires because they have no income tax and live luxuriously. Still, America remains a destination of choice for the world's wealthiest people. The centrality of America as the home of the global tech industry and Florida’s appeal as retirement heaven have been central factors that lure HNWIs (High Net Worth Individuals) back to the US again.

Why is the EB-5 Green Card Program Experiencing a Surge in Investor Interest?

The biggest economy in the world, the United States of America, also controls 32% of global liquid investable wealth, equivalent to $67 trillion. This has influenced the wealthy and most affluent individuals that reside there, with approximately thirty-seven percent (37%) of millionaires globally or roughly five point five million (5.5) high-net-worth individuals (HNWIs). Over the past few years. The EB-5 category green card program has witnessed increased interest from potential immigrants due to shorter waiting times and heightened security measures enacted under the EB-5 Reform and Integrity Act of 2022.

According to Dmytro Chernega, Private Client Advisor at Henley & Partners, “The result has been renewed demand for the program with many more applications being received and approved. The reserved Visas for targeted employment areas (TEAs) have been favorable to Chinese and Indian investors, hence enabling them to move faster.”

Global economic instability, conflicts in Ukraine and the Middle East, and increasing societal divisions are causing many high-net-worth individuals to opt for second citizenship in other countries to mitigate risks. Among the wealthiest immigrant groups worldwide, millionaires from Ukraine increasingly seek safe havens and better lives for their families in the U.S. The US is now among the most popular destinations for migrating millionaires and their families due to its stability, safety, and better opportunities: an oasis of hope amid uncertain times.

Moreover, the Henley Opportunity Index states that only the UK comes second after America. At 82%, this was the total opportunity score the Index gave concerning top-tier education and residence rights’ effect on multiple generations’ wealth. The nation boasts good earning potential, employment chances, and career progression.

From a pragmatic standpoint, investors who acquire citizenship after legal residence five years ago find the US passport valuable. It provides significant economic mobility, allowing 188 visa-free accesses, representing 73.7% of the world's GDP. By facilitating international investment and business opportunities, HNWIs can know what they would gain from a gesture like this.

The quest for global wealth is a high-stakes game where investment migration has become the only option or success. Investment migration is acquiring a new country’s residence or citizenship by investing substantially in the economy. “In terms of attracting and retaining wealthy individuals from around the world, this program provides both parties with advantages: access to other opportunities and stability for investors; capital injection and talent influx into host countries to ensure economic dynamism” (Volek, 2024).

Reforms and Enhancements in the EB-5 Green Card Program

The EB-5 Immigrant Investor Program and its eligibility requirements have undergone several reforms to enhance its attractiveness. The changes that took place in 2022 include establishing an EB-5 Integrity Fund that helps identify and investigate frauds, allowing applicants within the US to apply for permanent residency while their EB-5 application is being considered, which means faster issuance of work permits and travel documents. Furthermore, these reforms have directed investments into regions with high unemployment rates (TEAs) and set some visas aside for investors based there. This has helped reduce waiting times significantly, making applicants feel secure about their application, hence becoming more attractive to potential investors.

Since its establishment, nearly 123,000 qualified investors and their families have been granted legal permanent residency through the EB-5 visa program. As a result of continuous enhancements and more application approvals, about 6,000 EB-5 visas were granted in 2024.

The EB-5 Green Card program is expected to attract more billionaire immigrants as it is improved, solidifying its position as a top destination for foreign investment and wealth.