In 2020, the COVID-19 pandemic swept across the globe, wrecking economies and leaving governments scrambling to respond. Many countries implemented mandated lockdowns, travel restrictions, and even work restrictions. These restrictions and constant changes in public health mandates significantly impact those involved in immigration programs like the EB-5 Immigrant Investor Program. Whether or not foreign investors choose to pursue EB-5 investments during the COVID-19 pandemic could have a major effect on the global economy.
Why the United States is a Top Choice for Foreign Investors
The United States has seen its fair share of challenges in the last few years. The Trump administration was tough on immigration, political and racial tensions have grown ever more dire, and to top it all off, the United States is leading the world in COVID-19 infection rates. However, even in the face of all these challenges, the United States remains a top choice for foreign nationals looking to relocate.
World-Class Education and Health Care
One of the main reasons that foreign nationals seek to permanently relocate to the United States is to gain access to world-class U.S. education and health care. The United States has a world-class public education system as well as top-tier universities. The country is also home to three of the top hospitals in the world.
Political and Economic Stability
Relative to the rest of the world, the United States remains politically and economically stable. Those who pursue an EB5 investment and receive a U.S. green card are free to live and work in the United States with no restrictions, allowing them to enjoy all of the freedoms of U.S. permanent resident status.
Understanding Instability Outside of the United States
There are many factors that push foreign nationals to seek permanent residency in the United States. Two major drivers are political and economic stability. For example, many Latin American countries have seen major economic instability during the COVID-19 pandemic, which has pushed wealthier individuals to look for residency programs in other countries in hopes to find a more stable economic climate. Recently Mexico, Argentina, and Chile have all seen economic and political shifts that has resulted in some citizens looking for new places to live.
With new legislation in these countries beginning to favor a socialist approach and policies moving away from private capitalism, the wealthy are starting to carry the burden of funding the large government through tax increases. As a result, many foreign nationals are hoping to find a new place of residence to can protect their capital. Many foreign nationals in this position look to obtain a better future in the United States for themselves and their family members. Considering this trend, it is expected that the EB-5 program will continue to become increasingly popular over throughout 2021 and beyond.
The Win-Win EB-5 Investment Model
Foreign nationals are not the only ones who benefit from the EB-5 program: the program is set up to benefit both foreign investors and U.S. citizens and residents. Because the program uses EB-5 investment capital to support new businesses and create new jobs for U.S. workers, it truly is a win-win investment model. This is also why the EB-5 program could be so impactful following the COVID-19 pandemic. It could be the perfect solution to help jump-start the U.S. economy and begin recovery.
To maintain this model, EB-5 investors must have a strong support system that assists them with their citizenship planning and ensures that EB-5 investments continue to be successful.
The Importance of a Support Team
Completing the full EB-5 journey can be a complicated process, and attempting to plan and execute a large investment, manage a new commercial enterprise (NCE), complete visa applications, and move one’s family to a new country can be a lot for one person to take on. This is why working with the right team is so crucial during the EB-5 investment process. A team of experienced EB-5 professionals can assist with the following:
- Accounting and administration tasks
- Corporate formation
- Local tax compliance
- Legal guidance on preimmigration taxes
- Trust information and establishment
When relocating to the United States, one key important step is planning for all the tax implications living in the United States entails. In the United States, each taxpayer must report all U.S. and foreign income. Additionally, global reporting is required for all foreign assets, accounts, and investments. Working with a team of experienced professionals can ensure that you remain compliant with all regulations as you transition to a new life in the United States.