Many countries with citizenship-by-investment programs around the world consider access to the U.S. E-2 visa treaty a major advantage for their CBI offerings. Similarly, other countries with residency-by-investment programs that can lead to citizenship. From Grenada to Turkey , global investors seek citizenship by investment in pursuit of E-2 nonimmigrant visas that allow them to live and work in the U.S. for up to five years, which is renewable. More than 33,000 E-2 visas were issued to investors and their dependents in 2021, according to the State Department.
The U.S. House of Representatives passed the Amigo Act as part of the National Defense Authorization Act, legislation that would extend the E-2 treaty countries to include Portugal – whose citizens could invest and live in the U.S. after the bill passes the Senate and is signed by the president. The change could give Portugal's Golden Visa program a new boost in popularity.
“The Friend Law will help create more jobs, increase investment, and further strengthen ties between the United States and Portugal,” said Diogo Capela , managing partner of Lamares, Capela & Associados (LACA). “It will be yet another reason for all those who already intend to obtain Portuguese citizenship to do so.”
“It could become a distinguishing factor and create a competitive advantage for this program over other [EU programs] (notably Spanish and Greek),” he adds.
Sara Sousa Rebolo from Prime Legal agrees that this is an important development for the immigration industry in Portugal.
“With the approval of access to the USA E-2 visa, allowing Portuguese investors to develop investment activities in the USA, all residency programs in Portugal including the Golden Visa will gain extra value in the migration and succession planning of HNWIs and entrepreneurs, also impacting the Portuguese corporate and export sector,” she said.
What about the other countries in the E-2 treaty?
The approval of the Amigo Act is not good news for all RCBI programs, as the bill also limits access to the E-2 visa to citizens who have been 'domiciled' or lived in one of the treaty countries for a minimum period of three years – essentially the alternative to the 'genuine link' bill between the investor and the country of citizenship emphasized by the EU last month when the EU commission took Malta to court over its RCBI program .
For a country like Grenada whose RCBI programs do not require applicants to visit or reside in the island nation, this condition is likely to impede the growth of its RCBI program as unrestricted access to the E-2 Visa is considered one of the key selling points. of your program.
“It’s not surprising that the United States government has requested more clarity in imposing a residency requirement [on E-2 applicants]; we have to keep in mind that it has always been clear that there should be a nexus between the E-2 applicant and the E-2 country,” explains Richard Hallam , CBI director at Ora Caribbean. “When investors decide to pursuecitizenship by investment in Grenada , there is a mandatory five-year retention period on their investment, during which the residency requirement can be met.”
Therefore, Hallam does not expect the Amigo Act to cause major disruptions to Grenada's CBI program. “The E-2 visa is by far the most economical and cost-effective bridge to the United States for those seeking the opportunity to live and work there. I don't believe the [Amigo Act] should significantly impact the [Grenadian CBI] program.”.
Turkey is another country whose RCBI program is likely to be affected by the passing of the Friend's Law. As it stands, investors can obtain Turkish citizenship within six months of investing in the country – but with the new Lei Amigo domiciliation condition, investors looking to obtain E-2 visas through Turkish citizenship can start looking in another place.
“The bill will harm popular citizenship through investment programs (CBI) in Turkey and Grenada (CBI), both of which have E-2 treaties with the U.S. The requirement that the passport holder be resident in their “new country” for three years before being eligible for an investor visa will certainly result in a large decline in demand for these two CBI programs,” predicts Bernie Wolfsdorf , former president of the American Immigration Lawyers Association.
Amigo Act and the EB-5 Visa Program
Launched in 1990, the EB-5 investor visa is a popular route for foreign investors seeking to relocate to the U.S. Unlike the E-2 visa, it offers an indirect path to U.S. citizenship. However, the E-2 visa can be upgraded to an EB-5 visa if the investment amount increases to meet the program requirements – which would be $ 800,000 in one Target Employment Area or $ 1,050,000 elsewhere – and ten jobs are created in the U.S. market.
Due to its lengthy application process and higher investment limit, the EB-5 visa is less popular with investors. However, it offers some comparative advantages.
“The E-2 investor visa is a good first step for those looking to invest in the US, but it does not lead to a green card, so many people looking to live in the US will still choose the EB-5 green card option. Also, children of E-2 visa holders age at 21 and their families break up, so the EB-5 option is definitely the best choice for those who can afford it,” Wolfsdorf said.
The US Senate also needs to sign the Amigo bill before it goes into effect.
"While very few of these treaty investor bills have advanced in the past, it seems likely that this bill could pass and make it to President Biden's desk before the congressional recess for the holidays," Wolfsdorf said.
Article originally published on the website uglobal.com
