Many parents choose to gift investment funds to their children so they can apply for EB-5 visas. Here’s what families need to know to get started and why the EB-5 visa is an attractive option for students.
Requirements for Gifting Investment Funds to Children for EB-5 Use:
A gift of funds may be used for an EB-5 investment if the donor can prove that the funds for the gift came from lawful sources. The donor may also need to clearly state that there is no expectation of repayment of the gift. Depending on the sources of funds, the donor may need to provide tax returns, sale of assets documentation, investment documentation, business earnings statements, or other applicable documents.
Tips for parents preparing EB-5 source of funds documentation:
- Consult with an immigration attorney about your unique case to best determine which funds to gift and what documents need to be provided to support the source of funds report.
- It may be helpful to review all your funding options and select the ones with the highest value and the most straight forward sources to document.
- Compile, organize, and make copies of the documents needed to show the lawful source of funds.
- Plan and account for the time needed to get documents translated, if necessary.
Why International Students are Investing in EB-5:
The EB-5 Program is a very attractive visa option because it allows international students to stay in the U.S. after completing their studies and pursue unlimited training and career options. Unlike other visa categories, the EB-5 visa does not require an employer-sponsor, it does not limit a student’s career field options, it does not limit how many hours a student can work during the school year, and it does not have travel restrictions.
3 Reasons Why the EB-5 Visa Program is the Best Option for Students
Most young adults seeking a future in the U.S. commonly pursue the well-known F1 and H1-B visa programs. However, the EB-5 Immigrant Investor Program has recently caught the attention of many international students and young professionals. Through the EB-5 program, the applicant invests a minimum required investment amount in a new U.S. business, and upon verification that the capital has been legally sourced and the business has created at least 10 full-time jobs, the investor will secure green cards for themself and their family (spouse and children under 21).
- Merit-Based Benefits and Lower In-State Tuition Costs
EB-5 green card holders may qualify for merit-based scholarship benefits and grants reserved only for U.S. citizens and decreased in-state tuition rates at American universities. Additionally, EB-5 investors may be eligible for Free Application for Federal Student Aid (FAFSA) and other financial aid services, which would not otherwise be available to them.
On average, a resident (as compared to a non-resident) can save at least 45% of the cost of attending college, with an average annual savings of $23,045. If a student is in college for 4 years, that’s a total savings of $92,183.
- Employment Opportunities
For international students holding an F-1 visa, they have only three months to find a job and register themselves with the United States Citizenship and Immigration Services (USCIS) after graduation. If an individual has not secured employment within the allotted three months, then he or she must leave the country.
The requirement that international students pursue employment opportunities in their field of study limits their options and further increases competition. Furthermore, very few companies are willing to sponsor the H-1B visa. During the application process, employers will often filter applications that require sponsorship and eliminate these candidates at the initial stages. With the EB-5 visa, students applying for jobs post-graduation are treated as U.S. residents and do not face any of these difficulties, thus allowing them to pursue any career of their dreams.
- Higher Acceptance Rate
There are currently over one million international students at American universities, and the competition for acceptance is higher than ever. Being a U.S. resident increases your school or university acceptance rates considerably, allowing for greater choice as to where you would like to begin your education.
Whereas 9% of domestic applicants are accepted to Massachusetts Institute of Technology (MIT), only 0.03% of international students gain admission. With a green card via the EB-5 Visa program, investors and their family are deemed as U.S. resident applicants when applying to American colleges and universities, thereby eliminating these restrictions.
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