E-2 Visa Options That Make Sense

One of the most popular and enduring work visa programs in the United States is the E-2 work visa program. The program allows a citizen of a country with which the United States has a trade treaty to be admitted to the United States when investing in a U.S. business. In addition, certain employees may also be eligible for this work visa. The program is used by foreign investors to invest in hotels, restaurants, gas stations, or in various franchises like McDonald’s or Hampton Inns.

Eligibility

To qualify for E-2 classification, the treaty investor must be a citizen of a country with which the United States has an investment treaty, have invested, or be actively in the process of investing a substantial amount in a bona fide active business in the United States, and develop and direct the investment enterprise. This is established by showing at least 50% ownership of the enterprise or by attaining operational control through a managerial position or other corporate devices. The investment must be put at risk in the commercial sense with the objective of generating a profit. The lower the cost of the enterprise, the higher the investment must be to be considered substantial.

Not All E-2 Visas Are Equal

However, not all E-2 visas are equal. For example, an E-2 visa granted to a Canadian is usually granted for five years and is renewable in five-year increments. This is not the case with E-2 visa applicants from other countries. The reason for these restricted periods of authorized stay is reciprocity. The U.S. treats nationals of other countries in a manner similar to how U.S. nationals are treated in those countries. Thus, for example, applicants from countries like Ecuador, Armenia, Ukraine and Moldova face severe restrictions on their periods of authorized stay in the U.S. They can only get E-2 visas for three months and are limited to two renewals. Actually, there are about 35 countries with such impediments to their periods of authorized stay in the USA. The question is what can be done to help such investors overcome this handicap?

Internal Extensions of Stay

One way is to seek to extend E-2 status inside the U.S. once the investor has arrived. An internal extension application to change status can be made and a two-year extension can be obtained. However, the challenge is that such an immigration status is lost the moment the investor needs to travel abroad. The precarious nature of the investor’s situation makes this option less than desirable.

The Citizenship By Investment Alternative

A better answer is that rather than taking advantage of what is a crippled E-2 opportunity, it may be wiser for many foreign investors to consider qualifying elsewhere under a citizenship by investment program with a country that also has a trade agreement with the U.S., but one where there is no shortcoming in terms of the period of authorized stay. There are a few such countries, like Grenada in the Caribbean, and Turkey in the Middle East, for example. As for how this idea works, the following chart helps to explain the process:

The investment amounts in this chart are approximations depending on the case involved. However, they provide a reasonable idea of how an investment in Grenada could help a foreign investor to get a less restricted E-2 visa in the United States. Processing times for Grenada citizenship are about four months. For an E-2 visa, processing times at U.S. Consulates are backed up so we have indicated it may take about a year to get the visa. These are projections subject to the realities on the ground. In the meantime, during that processing delay, the investor can simply travel as a visitor in and out of the USA to look after the investment until he or she gets the E-2 visa. Once obtained, the E-2 visa will be good for five years, and renewable indefinitely, however. So it may be worth the extra effort and the delays.