E-2 visa or EB-5 green card: which is better?

At first glance, these two visas look very similar. Both let you come to the USA and work there after investing in a US business.

Yet these two visas are very different in many ways.

Which visa is right for you depends on your specific immigration goals and your personal circumstances.

The E-2 visa is also one of the US visa options for freelancers, the self-employed and influencers. You can read more about that here.

This article explains the 7 key differences between the E-2 visa and the EB-5 visa.

By the time you finish reading, you should have a clearer idea of which visa suits you best.

If you have questions about any of the points covered, the best step is to book a consultation directly through our website.

So, let's get started…

1Nonimmigrant visa vs. green card

The first big difference between the E-2 visa and the EB-5 visa is that the E-2 is a nonimmigrant visa, while the EB-5 visa is an immigrant visa.

Nonimmigrant visas are temporary and do not lead directly to a green card.

Immigrant visas lead to a green card and lawful permanent residence in the USA.

In other words, an EB-5 visa gives you the right to a green card and lawful permanent residence.

With an E-2 visa you can keep living and working in the United States in legal status, but the visa does not lead directly to a green card. To get from an E-2 visa to a green card, you have to adjust your status to an immigrant visa or apply for an immigrant visa.

And because the E-2 is a nonimmigrant visa, you must also intend to leave the USA once your E-2 status ends.

The EB-5 visa does not require you to intend to leave the USA.

2Nationality requirement

The next big difference between the EB-5 visa and the E-2 visa comes down to your nationality.

The E-2 visa is only open to citizens of a country that has an E-2 treaty with the USA.

To check whether your country has an E-2 treaty with the USA, visit the US State Department website here:

travel.state.gov: Treaty Countries

I've also typed out the list of countries here:

Albania, Argentina, Armenia, Australia, Austria, Azerbaijan, Bahrain, Bangladesh, Belgium, Bosnia and Herzegovina, Bulgaria, Cameroon, Canada, Chile, Taiwan, Colombia, Congo (Brazzaville), Congo (Kinshasa), Costa Rica, Croatia, Czech Republic, Denmark, Ecuador (only for investments in place by May 18, 2018, and no later than May 18, 2028), Egypt, Estonia, Ethiopia, Finland, France, Georgia, Germany, Grenada, Honduras, Ireland, Israel, Italy, Jamaica, Japan, Jordan, Kazakhstan, South Korea, Kosovo, Kyrgyzstan, Latvia, Liberia, Lithuania, Luxembourg, Mexico, Moldova, Mongolia, Montenegro, Morocco, New Zealand, Netherlands, North Macedonia, Norway, Oman, Pakistan, Panama, Paraguay, Philippines, Poland, Portugal, Romania, Serbia, Senegal, Singapore, Slovak Republic, Slovenia, Spain, Sri Lanka, Suriname, Sweden, Switzerland, Thailand, Togo, Trinidad & Tobago, Tunisia, Turkey, Ukraine, United Kingdom, Yugoslavia.

Quite a few major countries have no E-2 treaty with the United States, including:

• China
• Russia
• Brazil
• India

This means citizens of countries without an E-2 treaty with the USA are not eligible for an E-2 visa.

The EB-5 visa, on the other hand, has no nationality requirement. You can be a citizen of any country and apply for an EB-5 visa.

3Minimum investment

The next big difference between an E-2 visa and an EB-5 visa is the minimum investment.

Since March 15, 2022, an EB-5 visa requires you to invest at least $1,050,000 in a US business. If you invest in a "targeted employment area", you can qualify for a reduced investment of $800,000.

A targeted employment area is an area with high unemployment or a rural area.

The E-2 visa, by contrast, has no fixed minimum investment. To get an E-2 visa, you must invest a "substantial" amount in a US business. The regulations do not set a minimum amount that counts as substantial.

Instead, the minimum investment for an E-2 visa is based on a "proportionality test".

This means the amount you invest for an E-2 visa is compared with the total cost of a comparable established business.

For lower-cost businesses, your investment is expected to cover a larger share of the total cost. For higher-cost businesses, your investment can make up a smaller share of the total cost.

This concept can be confusing.

As a rule of thumb, we recommend investing no less than $50,000 for an E-2 visa.

4Job creation

The next big difference between the E-2 visa and the EB-5 visa is job creation.

To get an EB-5 visa, you must create 10 full-time jobs for US workers. These jobs must be created before you receive your permanent green card.

For an E-2 visa, you don't necessarily have to create jobs.

Instead, you must show that the business you invest in is not "marginal".

A marginal business is one that does not have the present or future capacity to generate more than a minimal living for the E-2 investor and their family.

So to meet the marginality test for an E-2 visa, you can show that your business generates enough income to provide more than a minimal living for you and your family.

You can also meet the marginality requirement by showing that your business needs to hire US workers and so has a positive impact on the US economy.

So for an E-2 visa you can show job creation in the USA, but it isn't as essential as it is for an EB-5 visa.

5Source of funds

For both the E-2 visa and the EB-5 visa, you must show that your investment capital was lawfully obtained.

• Some examples of lawful sources of funds:
• Income from lawful employment
• Proceeds from selling a property
• Proceeds from selling a business
• A gift
• A loan
• And many more

Both the E2 visa and the EB-5 visa require your funds to come from a lawful source. The difference is how strictly that requirement is enforced.

For an EB-5 visa, the lawful source of funds requirement is examined more strictly than for an E2 visa.

For an EB-5 visa, be prepared to submit a lot of paperwork showing exactly how you obtained your funds.

6Timeline

The next big difference between the E2 visa and the EB-5 visa is how long the application takes.

6.1Getting an EB-5 visa takes much longer than getting an E2 visa.

Here is a detailed explanation:

The EB-5 process is long and has several stages:

Step 1: I-526 processing

• The first step toward an EB-5 visa is filing Form I-526.
• USCIS currently takes around 18 months on average to process an I-526 petition.

Step 2: Adjustment of status or visa processing

• The second step toward an EB-5 visa is either "adjustment of status" or consular processing.
• Adjustment of status: takes about 6 months
• Consular processing: takes about 8 to 12 months

Step 3: Conditional permanent residence:

• Once you complete step 2, you receive a conditional green card valid for 2 years.

Step 4: I-829 processing

• 3 months before your conditional green card expires, you must file Form I-829 to receive an unconditional green card.
• Form I-829 currently takes about 2.5 years to process.

As you can see, the EB-5 process is lengthy and involves several steps.

6.2The E2 visa, by contrast, is much faster and the process is simpler.

There are 2 ways to apply for an E2 visa:

• Change of status
• Visa processing

Change of status:

• A change of status is handled entirely within the US.
• Standard processing for a change of status takes about 3 months.
• You can pay an extra fee for Premium Processing to have your petition processed within 15 business days.
• These are the forms your attorney will file:
• Form I-129 with the E Supplement
• Form I-539 for your family members

Visa processing:

• Visa processing takes place at a US consulate abroad.
• This process takes about 3 months
• Your attorney will file these forms:
• Form DS-160
• DS-160s for your family members

7Work authorization

The next big difference between the E2 visa and the EB-5 visa concerns your ability to work in the US.

Both visas allow you to work in the US.

The difference lies in how broadly you may work.

E2 visa

• As the principal investor on an E2 visa, you may only work for the E2 business.
• You must come to the US to "direct and develop" the E2 business.
• Your spouse has been authorized to work based on E2 status alone since November 2021 and can work for any employer.

EB-5 visa

• With an EB-5 visa, you may work for any employer.
• You are still required to "be involved in the management of the EB-5 business", but you can also work for other companies.
• Your spouse can also work for any employer.

8What this means for you

There are 7 main differences between the E2 visa and the EB-5 visa:

1. The E2 visa is a non-immigrant visa. The EB-5 visa is an immigrant visa.
2. The E2 visa is only available to nationals of countries that have an E2 treaty with the US. The EB-5 visa is not limited to specific countries.
3. The EB-5 visa requires a minimum investment of $800,000 (in a targeted employment area, otherwise $1,050,000). The E2 visa has no minimum, but you must invest a "substantial" amount of capital.
4. The EB-5 visa requires you to create 10 full-time jobs for US workers. The E2 visa has no job creation requirement. Instead, it requires that your business is not "marginal".
5. Both the E2 visa and the EB-5 visa require your investment funds to come from a lawful source. For the EB-5 visa, this requirement is applied more strictly.
6. Applying for an E2 visa is much faster than applying for an EB-5 visa. With Premium Processing, an E2 can be processed in just 15 business days. The EB-5 currently takes around 2 years.
7. As the principal E2 investor, you may only work for the E2 business. With an EB-5 visa, you can work for any employer.

Now that you have read plenty about the 7 differences between the E2 visa and the EB-5 visa, you should have a clearer idea of which visa suits you best. You will find every detailed E2 page on our E2 investor visa overview.

But be aware: you cannot do this without an experienced US immigration attorney.

Mount Bonnell Advisors works with top immigration attorneys in the US.

Book a consultation now and we will walk through your case and the best visa strategy together.

You may even find there is a visa option that fits your needs better than an E2 or EB-5 visa.

We can also give you a sense of how likely your application is to succeed.

In short

• The E-2 is a non-immigrant visa and requires the intent to leave the US later; the EB-5 leads straight to a green card.
• The E-2 is only open to nationals of treaty countries; the EB-5 is open to people of any nationality.
• For the EB-5, the law sets fixed amounts and requires ten full-time jobs; the E-2 requires a substantial investment in a business that is not marginal.
• The E-2 is much faster to obtain but ties the investor to the E-2 business; with the EB-5 you can work for any employer.

How we help you

• Visa RoadmapIn writing: which visa fits you and your family, prepared with the immigration attorney on the firm's team.
• Visa Roadmap for Company FormationFormation and visa in one plan, so the company carries the visa.
• US Company FormationLLC, Inc or LP in Delaware, Florida, California, New York, Texas or Wyoming.
• Visa and Green Card ConsultationWhich route to the USA fits you, settled in one conversation.