3 Planning from the start Main issues your clients should be aware of: US Taxes Immigration Taxes in U.S. Most foreigners can be taxed on their worldwide income, regardless of their immigration status Tax on worldwide income applies to individual's who have Physical Presence in U.S. Of: 183 days/year or more 120 days each year for 3 years
4 General U.S. Visa Categories Work Visas May have immigrant intent, non-immigrant intent or “dual intent” Immigrant visas “Greencard” Intent to reside permanently in U.S. Non-immigrant Visas Temporary stay Intent to reside temporarily in U.S. Vs.
5 Top 5 work/investor visas B Visitor Visa – non-immigrant visa L- I Intra-Company Transferee Transfer – work Visa H-I B Professional visa – work visa E-1 Treaty treaty trader – work visa E-2 Treaty Investor – work visa EB5 Investor visa – immigrant visa (“Greencard”)
6 B Visitor Visa B I – Visitor for Business Visa, max 3 month stay. B2 – Visitor for Pleasure (Tourist Visa), max 6 month stay. Advantage of B visa: client's status can be changed and/or extended
7 Visa Waiver Program No visa required for nationals of some countries Must complete ESTA prior to trip to US. No extensions permitted Andorra Australia Austria Belgium Brunei Denmark Finland France Germany Iceland Ireland Italy Japan Andorra Australia Austria Belgium Brunei Denmark Finland France Germany Iceland Ireland Italy Japan Luxembourg Monaco The Netherlands New Zealand Norway Portugal San Marino Singapore Slovenia Spain Sweden Switzerland United Kingdom
8 L- IA Visa Intra-company Transferee Client employed one year within the last three years at company abroad In Managerial or Executive Position Company abroad needs to establish company in U.S., both entities need to be under same corporate control Company abroad needs to continue operations Dependents on L2: Spouse gets a work authorization permit
9 L- IA Visa Intra-company Transferee Applicable to Potential Real Estate clients as follows: Small company owner Company abroad does not need to have the same operation as abroad; i.e. restaurant owner abroad can operate courier business in US
10 L- IA Visa Intra-company Transferee Company Structure:ShareholdersXYZ Company AbroadCompany U.S. 51% Or
11 L- IA Visa Intra-Company Transferee Position of client needs to be Managerial or Executive Manager: Manages the company or a department Supervise the work of others Decision maker on daily operations In charge of staffing the company: hire/fire employees Executive: Directs the company In charge of setting goals and company policies Receives order from Board of Directors Directs the operations of the company
12 L- IA Visa Intra-Company Transferee Sample Organizational Chart Client needs to continue to supervise personnel in U.S.
13 L- IA Visa Intra-Company Transferee Advantages: Can be transferred to US company to work until term of Visa Can work for the U.S. Company Family: children can attend public/private schools. Spouse has open work permit Priority worker category for “Greencard”. No Labor Certification Process & EBI => category is Current (No “Greencard” Backlog).
14 L- IA Visa Intra-Company Transferee Limitations: Visa is issued for a maximum of 7 years Can only work for the petitioning company At end of 7 th year has to leave if not processed “Greencard”
15 L-IA Visa Intra-Company Transferee Realtor opportunities of this visa: Business brokering Lease/purchase of premises to operate business Lease/purchase of home
16 H-I B Professional Visa Clients with a college/university degree or professional experience (equivalency) Degree by Equivalency: USCIS recognizes I year college degree = 3 yrs of professional experience. (12 years of professional experience = college degree)
17 H-I B Professional Visa Realtor opportunities with this visa: It is an alternative for client who has children over 21 with a degree, parent (in L-IA visa) can employ them Dependents receive H-4, can study
18 E-2 – Treaty Investor Visa Client has to be national of Treaty country Controls majority of company or 50% with control of entity
19 E-2 – Investor Visa Treaty Countries ArgentinaChinaGeorgiaKyrgyzstanPakistanSwitzerland ArmeniaColombiaGermanyLatviaPanamaThailand AustraliaCongoGrenadaLiberiaPhillippinesTogo AustriaCosta RicaHondurasLuxemburgPolandTrinidad and Tabago BangladeshThe Chech Republic IranMexicoRomaniaTunisia BelarusEcuadorIrelandMonaccoSenegalTurkey BelgiumEgyptItalyMoldoviaThe Slovak Republic The Ukraine Bosnia- Herzegovina EstoniaJamaicaMongollaSpainUnited Kingdom BulgariaEthiopiaJapanNetherlandsSri LankaUzbekistan CameroonFinlandKazakhstanNorwaySurinameYugoslavia CanadaFranceKoreaOmanSweden
20 E-2 – Treaty Investor Visa How much $$ does the investor “need” to invest? A “substantial” capital investment. It is not specified by regulations. Capital has to be “at risk” Investment cannot be “Marginal” when compared to the total investment. Cash investment should be 51% or more, unless is a property investment where it is common in industry to have higher amount of leveraging. It will vary by case
21 E2 – Treaty Investor Visa Activities of E2 client: To “Direct and Develop” their investment => Control Enterprise is or will be active E2 may be employed in key managerial and specialist positions
22 E2 – Treaty Investor Visa Temporary status. No path to “Greencard” Visa is renewed indefinitely, as long as the investor is actively making investments Family: children can attend public/private schools. Spouse has open work permit
23 EB-5 Employment Creation Immigrant Visa (“Greencard”) Entrepreneur: invest $1,000,000 or $500,000 + employ 10 individuals Regional Center (RC): can invest $500,000 + employ 10 individuals
24 EB-5 - Regional Center Projects EB-5 Regional Centers are: Government approved entity, organization or agency; Focuses on a specific geographical area of the United States; Seeks to promote economic growth, increased regional productivity, job creation and domestic capital investment. Investment requirement is USD $500,000 if a Regional Center is in a Targeted Employment Area (TEA), (a rural or high unemployment area of the United States). Additional guidelines to the EB-5 Regional Center Program: Foreign investment into the Regional Center Program must be made prior to submission of the EB-5 application. All investment ventures are managed by various General Partnerships, which are authorized to sell Limited Partnerships in the program to foreign investors who wish to pursue permanent residency with a “Green Card” in the United States. Requires the alien investor enterprise to create 10 direct or indirect full-time positions for U.S. Citizens, (unlike the regular EB-5 program that requires the investment to create a minimum of 10 “direct” jobs for U.S. Citizens).makes this program more attractive and popular among foreign investors.
25 E2 – Investor Visa Realtor opportunities of this visa: Business brokering Lease/purchase of premises to operate business Lease/purchase of home
26 EB-5 Employment Creation Immigrant Visa (“Greencard”) Client must invest $1,000,000 or $500,000 if rural or targeted employment area (TEA)*, and employ 10 individuals (directly or indirectly) Can also purchase an existing business and increase it by 140% in net worth or employees; or 20% loss in net worth. * experienced unemployment of at least 150% of national average rate
27 EB-5 Employment Creation Immigrant Visa (“Greencard”) Entrepreneur: invest $1,000,000 or $500,000 + employ 10 individuals Regional Center (RC): can invest $500,000 + employ 10 individuals
28 U.S. Taxes U.S. Taxes on worldwide income apply to: U.S. Citizens and Legal Permanent Resident; and Those who meet Physical Presence Test, some exceptions apply: F-I students.
29 U.S. Taxes □ Foreign Investment in Real Property Tax Act of 1980 (FIRTPA) Applies to Foreign Sellers Sell property of more than $300,000 10% withholding Tax from Gross Sale □ Income Tax □ Gift Tax □ Estate Tax
30 Business Entities Sole Proprietorship Corporation: must elect C corp ( S does not apply to foreigners) Partnership/Joint Venture Limited Liability Company