Foreigners pursuing the American dream of obtaining a green card via the EB-5 visa may be required to pay additional fees.
Due to the proposed taxation on outbound remittances by the Centre, which would take effect on July 1, 2023, could add $120,000 (98 lakh) to the existing minimum fee of $800,000 (6.53 crore) for Indian EB-5 investments.
Proposed Tax Increase to Impact EB-5 Visa Applicants
According to the Union Budget, any outward remittances, excluding medical treatment and education, will be subject to a 20% TCS on the total value.
The current TCS is 5%, and the proposed increase could significantly raise the initial investment required for EB-5 visa applications.
The proposed taxation increase, according to Nicholas A. Mastroianni, III, President and Chief Marketing Officer of U.S. Immigration Fund (USIF), a Florida-based EB-5 visa firm approved by the United States Citizenship and Immigration Services (USCIS), could result in a significant 15% increase in taxes for EB-5 investors over the existing fee.
EB-5 Visa Demand Among Indians on the Rise
Mr Mastroianni claims that the demand for EB-5 programmes among Indians has increased significantly since the pandemic. For example, in 2022, 1,381 people applied for this visa, up from 756 in 2019.
Mr Mastroianni also noted that a significant proportion of Indian EB-5 investors are parents who want to send their children to study in the United States. These parents want their children to be able to stay in the country after graduation and have unrestricted access to job opportunities without having to rely on the H-1B visa.
Positive Outlook for EB-5 Adoption in India
Despite the proposed tax increase, Mr Mastroianni has a positive outlook on EB-5 adoption in India.
He stated, “More and more wealthy individuals and families seek opportunities to invest in the United States and obtain permanent residency and a green card through the programme, especially when other visa options are becoming more difficult to obtain.”
Non-Immigrant Visa Fee Increases From May 30
The US has recently increased the fees for visitor visas for business or tourism (B1/B2s and BCCs), and other non-petition-based NIVs such as student and exchange visitor visas, will increase from $160 to $185.
Meanwhile, certain petition-based non-immigrant visas for temporary workers (H, L, O, P, Q, and R categories) will increase from $190 to $205. Lastly, the fee for a treaty trader, treaty investor, and treaty applicant in a speciality occupation (E category) will increase from $205 to $315.
(Source & Inputs From The Hindu)