How to Gain Tax-Free Access to the USA

Summary

This video explores the options available for global entrepreneurs seeking to access the US market without needing a green card or US citizenship. It highlights the E2 non-immigrant investor visa, which allows non-resident aliens to invest in and operate businesses in the US while enjoying benefits like obtaining a Social Security number. The discussion emphasizes that investing in the US remains viable and that E2 visa holders can avoid exit taxes. Ultimately, it presents a strategic pathway for those looking to grow their investments in the US while minimizing tax obligations.

Takeaways

• 😀 You do not need a US green card or citizenship to invest in the US market.
• 😀 The E2 non-immigrant investor visa allows non-residents to access US banking and investment opportunities.
• 😀 Holding an E2 visa means you are not considered a permanent resident for tax purposes unless you meet the substantial presence test.
• 😀 The substantial presence test calculates your residency based on your physical presence in the US over the last three years.
• 😀 E2 visa holders can apply for a Social Security number and work for their own business in the US.
• 😀 Unlike green card holders, E2 visa holders do not face exit taxes when leaving the US.
• 😀 A substantial investment (typically around $100,000 to $120,000) is required to qualify for the E2 visa, which should sustain a legitimate business.
• 😀 Not all nationalities are eligible for the E2 visa; eligibility depends on citizenship from countries with treaties with the US.
• 😀 E2 visa holders are subject to US taxes only on US-source income, not on global income.
• 😀 The E2 visa provides a pathway to explore business opportunities in the US without full integration into the US tax system.

Q & A

Do I need a U.S. green card or citizenship to invest in the U.S. market?

No, you do not need a U.S. green card or citizenship to access U.S. banking, credit, or investments.

What is the E2 non-immigrant investor visa?

The E2 visa allows non-immigrants to invest in and operate a business in the U.S. without being considered permanent residents for tax purposes.

How does the substantial presence test determine U.S. tax residency?

The test calculates your average stay in the U.S. over the past three years based on a formula involving the number of days spent each year.

What are the advantages of the E2 visa compared to a tourist visa?

E2 visa holders can obtain a Social Security Number and legally work in their U.S. business, whereas B1/B2 visa holders cannot.

What are the typical investment amounts required for the E2 visa?

While there is no set amount, investments generally range from $100,000 to $120,000, depending on the business type.

Can E2 visa holders exit the U.S. without incurring exit taxes?

Yes, E2 visa holders can exit the U.S. without facing exit taxes, unlike green card holders or U.S. citizens.

What type of businesses can qualify for the E2 visa?

The E2 visa can qualify a wide range of businesses, from large operations like auto factories to smaller enterprises like food trucks.

Are all nationalities eligible for the E2 visa?

No, only citizens of countries with specific treaties with the U.S. are eligible to apply for the E2 visa.

What is the tax obligation of an E2 visa holder?

E2 visa holders are subject to U.S. taxes only on U.S. source income, allowing them to avoid global taxation.

What does it mean to be domiciled in a country for E2 visa eligibility?

Domicile refers to having a center of vital interests in a country, which can include factors like home ownership and social ties.