Recently, there has been a fair amount of media coverage on investor visas in the United States, mostly focused on the EB-5 visa. A provision extending the regional center EB-5 visa program was added to the March 2018 Omnibus bill and subsequently signed into law by President Trump. Skeptics argue that the U.S. is selling a fast track to residency (and eventually citizenship). They urge that the investment amount of $500,000 be increased as it has not been indexed to inflation in over 25 years.
In the EB-5 visa’s shadow, the E-2 treaty investor visa has rapidly grown to over 43,000 approved annually. This represents over four times the number of EB-5 visas issued in 2017!
Contents
What is the E2 visa?
The E2 visa allows a national of a treaty country the ability to invest and reside in the U.S. There is no minimum investment, although an investment at $150,000 or greater increases the chance of approval. Moreover, there is no minimum number of American job creation required. Most countries allow for a 5-year visa that is renewable indefinitely as long as the business is operational and provides a financial benefit to not only the investor but the U.S. economy.
E2 Visa Approval Statistics
The approval rates for the E2 visa are much higher than other employment or investor visas like the H1-B, L-1 and EB-5. Over the past year, the approval rate fell slightly from 93% to 92%.
The approval rate includes people who did not receive the approval in the first interview and had to return to the consulate with a revised petition. The State Department has not released the approval data for fiscal year 2017, but the 2016 approval rate was 92%.
We expect approval rates to decrease as the E-2 visa option for managers has been held under tighter scrutiny in consulates around the world. The manager’s E2 visa option is generally harder to obtain than an investor petitioning for himself. Immigration attorneys are often being asked to prove that a U.S. worker could not fill the E-2 visa position.
Year
E-2 Visa Approval Rate*
2014
92%
2015
93%
2016
92%
*The adjusted approval rate equals:
[[1] minus [Refusals minus Overcomes]] divided by [Issuances plus Refusals minus Overcomes]
E2 Visa Approvals in The Americas
Our neighbors to the north and south, Canada and Mexico, remain the top countries for E2 visa approvals in the Western Hemisphere.
For example, Canada had 2,854 E2 visas issued in 2017, representing a growth of 10% over three years. This contrasts with Mexico, that has declined 10% over the past three years.
At Visa Franchise, we expect more Mexicans to apply in 2018 as fears have calmed regarding the perceived uncertainty in the Trump presidency and concerns have grown with the upcoming Mexican elections in July.
Two countries that do not maintain E2 visa treaties, Brazil and Venezuela, have had major growth over the past three years. Brazil alone has grown 354% over three years, representing an annualized growth rate about 100%. Many Brazilians and Venezuelans are dual nationals of E-2 visa countries in Europe and Latin America. In Latin America, E-2 visa demand tends to surge in countries with political and social uncertainty and instability.
Most of our Canadian clients move to the southern U.S. states of Florida, Texas, Arizona and California, often to escape the harsh winters in Canada. Many are also looking for greater economic and educational opportunities in the United States.
As for Latin Americans, there is a heavy concentration in Florida, Texas and California, and most of them move to the U.S. for better opportunities for their children.
E2 Visa Issuances in The Americas
Countries
2014
2015
2016
2017
3 Year Growth
Canada
2,590
2,615
3,004
2,854
10%
Mexico
2,707
2,580
2,621
2,438
-10%
Argentina
536
595
683
566
6%
Colombia
322
393
465
420
30%
Venezuela
196
456
458
353
80%
Brazil
63
154
266
286
354%
Chile
51
141
116
172
237%
Ecuador
17
35
62
107
529%
Trinidad and Tobago
19
24
4
43
126%
Jamaica
5
6
21
31
520%
Honduras
46
33
45
29
-37%
E2 Visa Approvals in Asia
Asia has traditionally been the most popular region for E2 visa investors, due to Japan’s heavy concentration of petitioners. Through discussions with immigration attorneys, most of the E-2 visa issuances are for Japanese managers that are transferred to work in the Japanese company’s U.S. affiliate. Japan alone accounts for over 14,000 E2 visa issuances and that represents more than the 10,000 EB-5 visas issued every year! South Korea E-2 visa issuances have grown 20% over the past three years and many Koreans open up franchise businesses across the United States through the E2 visa program.
Language barriers can often be an issue for our Asian clients investing in U.S. franchises. We have developed a portfolio of business opportunities that has Chinese speaking staff (as well as other languages) to support our clients with less advanced English. Often, the franchisor can also provide an operator that speaks the same language as our client to support the ongoing business operations.
E2 Visa Issuances in Asia
Countries
2014
2015
2016
2017
3 Year Growth
Japan
11,439
12,172
13,609
14,360
26%
South Korea
1,766
2,137
2,020
2,126
-20%
Taiwan
361
382
463
561
55%
Thailand
427
506
598
511
20%
Phillippines
122
86
112
139
14%
Pakistan
52
140
160
111
113%
China
53
78
88
92
74%
Kazakhstan
24
20
37
46
92%
Sri Lanka
7
17
15
42
500%
India
22
34
34
32
45%
E2 Visa Approvals in Europe
Europe is not as concentrated in the countries issuing E-2 investor visas and nearly has the same amount of issuances as Asia. For years, Germany has been the primary source of E2 visa issuances and we see Germans moving throughout the United States. Italians have had a substantial increase in E-2 visa approvals, in fact, 35% + over the past three years. Many Italians move to Florida, New York, and California to open up franchises in the restaurant and beauty industries. Given the ongoing conflict with Russia, it should come as no surprise that Ukraine’s E2 visa issuances have increased 100% + over the past few years. Many Ukrainians are moving to Florida and New York, opening fitness franchises and small restaurants.
The British generally prefer service-based franchises that require a strong command of English and sales skills, albeit a relatively low investment amount ($90,000- $120,000+). Many of our British clients are moving to California and Florida to escape the cloudy skies of the United Kingdom. It should also come as no surprise that we have received many inquiries in March and April as the long winter drags on in Europe. Moreover, the Scandinavians often divide their time between Florida and their home country maintaining small franchise operations in the United States with a trusted day-to-day manager.
E2 Visa Issuances in Europe
Countries
2014
2015
2016
2017
3 Year Growth
Germany
3,731
4,321
4,329
4,267
14%
United Kingdom
2,915
2,935
2,969
2,862
-2%
France
2,641
3,248
3,199
2,857
8%
Italy
1,404
1,926
2,054
1,911
36%
Spain
1,480
1,946
1,522
1,402
-5%
Sweden
529
591
535
528
0%
Netherlands
377
319
427
444
18%
Ireland
270
300
355
411
52%
Switzerland
231
201
281
288
25%
Belgium
191
246
252
245
28%
Denmark
141
199
208
203
44%
Austria
129
178
194
199
54%
Poland
103
101
135
189
83%
Norway
192
170
179
162
-16%
Ukraine
29
73
171
115
297%
Czech Republic
68
74
121
106
56%
Romania
40
47
51
95
138%
Our Italian client at the opening of his barbershop in Florida
E2 Visa Approvals in the Middle East
Is Turkey part of Europe, Asia, or the Middle East? It probably depends who you ask and perhaps what side of the city you live in Istanbul. E-2 visa issuances have grown 49% in Turkey over the past three years. Many Turkish nationals are moving to Florida and California and investing in a wide array of franchises, including fitness, coffee, and fast casual restaurants. Egypt also grew nearly 50% over the past three years and now has over 100 E2 visa issuances. Egyptian nationals generally have strong command of the English language and invest in service-based franchise (such as commercial cleaning) throughout the United States.
E-2 Visa Issuances in Middle East
Countries
2014
2015
2016
2017
3 Year Growth
Turkey
422
371
687
629
49%
Egypt
67
107
107
101
51%
Israel
39
44
82
83
113%
Jordan
29
35
29
63
117%
Azerbaijan
21
12
38
26
24%
Iran
48
25
15
20
-58%
Morocco
17
14
7
7
-59%
Lebanon
1
4
4
3
200%
Algeria
1
0
2
2
100%
Tunisia
11
7
6
2
-82%
E2 Visa Issuances When There is No Treaty – Brazil, China and India
Many countries, including the BRICs (Brazil, Russia, India and China), do not have a treaty of commerce and navigation with the U.S. allowing for the E-2 investor visa. With over 30% of our clients being dual nationals residing in countries that do not maintain an E-2 visa treaty with the United States, we have found that just because individuals are from a non-E-2 treaty country it does not necessarily mean that they or their spouses might not have another citizenship that would qualify them for an E-2 visa.
Brazilians and Venezuelans may leverage their European ancestry from such countries as Spain and Italy to apply through their second nationality. We expect many more Brazilians to apply for the E-2 investor visa. For instance, thousands of Brazilians recognize their Italian citizenship every year through their grandparents and great-grandparents. Also, we have clients from countries such as China who acquire a second citizenship through investment (often Grenada). They then make the investment and apply for the E-2 visa with their second passport. This has supported the increase of 72%, over the past three years for E2 visa issued in Chinese embassies and consulates.
For those not holding passports of one of the countries eligible for the E2 visa (listed below), they might consider investing for a second citizenship, or possibly have they or their spouse qualify for another passport through ancestry or birth.
E-2 Visa Countries
Countries With A Treaty Of Navigation And Commerce With The U.S.
Albania
Argentina
Armenia
Australia
Austria
Azerbaijan
Bahrain
Bangladesh
Belgium
Bosnia and Herzegovina
Bulgaria
Cameroon
Canada
Chile
Colombia
Congo – Brazzaville
Congo – Kinshasa
Costa Rica
Croatia
Czech Republic
Denmark
Egypt
Estonia
Ethiopia
Finland
France
Georgia
Germany
Grenada
Honduras
Iran
Ireland
Italy
Jamaica
Japan
Jordan
Kazakhstan
Korea (South)
Kosovo
Kyrgyzstan
Latvia
Liberia
Lithuania
Luxembourg
Macedonia
Mexico
Moldova
Montenegro
Morocco
Netherlands
New Zealand
Norway
Oman
Pakistan
Panama
Paraguay
Philippines
Poland
Romania
Senegal
Serbia
Singapore
Slovenia
Spain
Sri Lanka
Suriname
Sweden
Switzerland
Taiwan
Thailand
Togo
Trinidad & Tobago
Tunisia
Turkey
Ukraine
United Kingdom
Option for Green Card?
Although the E-2 visa does not have a direct path to U.S. permanent residency (green card), there are many ways to obtain a green card in the U.S. such as through the EB-5 or EB-1 visas. It is always advised to consult with a licensed immigration attorney in the beginning, because the investment might qualify the individuals and their families for a U.S. green card in the future.
Conclusion
At Visa Franchise, we expect demand to be strong for the E2 visa approvals over the coming years. Therefore, it will continue to be a solution for immigrant investors looking to move to the U.S. in as little as one month. As other visa categories such as the EB-5, L-1, and H1-B have become more stringent and cumbersome, the E-2 visa through a franchise investment stands out as the straightforward path for those seeking to move to the U.S.!
Who is Visa Franchise?
Visa Franchise guides investors in identifying and analyzing the best investment opportunities tailored to their specific objectives. The focus of the firm is on franchises that qualify for the E-2 (1) and EB-5 visas (2). Visa Franchise is the trusted advisor of clients from all over the world, helping them find the business opportunity that best meets their investment and immigration goals. Takes into consideration their capability, experience, and size of investment to ensure that they choose the best possible option for their unique, individual situation. Visa Franchise is based in Miami, Florida with offices throughout the U.S. and world.