Stay abreast of COVID-19 information and developments here
Provided by the South African National Department of Health
US EB-5 investor visas:
what you need to know
Head of Product and Strategy
Nov 06, 2019
The US EB-5 visa programme – run by the US Citizenship and Immigration Services (USCIS) – enables would-be emigrants to the US to become permanent residents by investing in an enterprise in what’s known as a ‘targeted employment area’ in that country. The investment needs to create or preserve at least 10 permanent full-time jobs for US workers.
The EB-5 programme was established in 1990 by Congress with the aim of stimulating the US economy through job creation and capital investment by foreign investors. Most EB-5 projects involve commercial real estate developments. Investors can either consider the projects of individual property developers, or invest through regional centres designated by the USCIS. Schemes operated via these centres are often still backed by single-asset developers, however. Another option is therefore to opt for a diversified model that invests in a portfolio of property assets instead of a single project.
Earlier this year, the USCIS introduced new regulations increasing the minimum amount to be invested in a targeted employment area from US$500 000 to US$900 000. Effective from 21 November 2019, the sharp hike in the investment level will reduce the number of South Africans able to make use of this option to obtain US permanent residency.
Besides the looming investment increase, South Africans aiming to go this route to secure a green card need to consider these crucial factors:
In a nutshell, if you’re considering the US EB-5 visa programme, you should approach it in the same way you would an investment: be clear on the objective (in this case, obtaining a green card) and scrutinise the risks associated with it.
If you’re going the single-asset route, ensure you conduct a thorough due diligence on the project, including the financial situation of the developer. If you need further protection against loss of capital, however, then select appropriate diversified models or schemes run by reputable persons to mitigate the risks. The best option is to seek advice from a professional to provide guidance on the process.
If you’d like further information on the potential tax consequences of investing in the US EB-5 visa programme, please contact Anton Maskowitz at email@example.com or 011 778 6641.
Sanlam Private Wealth manages a comprehensive range of multi-asset (balanced) and equity portfolios across different risk categories.
Our team of world-class professionals can design a personalised offshore investment strategy to help diversify your portfolio.
Our customised Shariah portfolios combine our investment expertise with the wisdom of an independent Shariah board comprising senior Ulama.
We collaborate with third-party providers to offer collective investments, private equity, hedge funds and structured products.
WHAT CAN WE EXPECT?
Investment Economist at Sanlam Investments
THIS TOO SHALL PASS,
BUT WHAT THEN?
BAT: STILL SMOKING
AMID COVID-19 VOLATILITY
Senior Investment Analyst
A COVID-19 WORLD
Director of Investments
OIL MARKETS: THE GOOD,
THE BAD AND THE UGLY
Member of SPW Investment Team
TECH STOCKS: OPPORTUNITY
AMID THE COVID-19 CRISIS
Head of Global Equities
COVID-19: WILL SA BANKS
SURVIVE THE ECONOMIC FALLOUT?
JUNK STATUS FOR SA:
NOT ALL DOOM AND GLOOM
Director of Investments
South AfricaSouth Africa Home Sanlam Investments Sanlam Private Wealth Glacier by Sanlam Sanlam BlueStar
Rest of AfricaSanlam Namibia Sanlam Mozambique Sanlam Tanzania Sanlam Uganda Sanlam Swaziland Sanlam Kenya Sanlam Zambia Sanlam Private Wealth Mauritius
GlobalGlobal Investment Solutions
Sanlam Private Wealth (Pty) Ltd, registration number 2000/023234/07, is a licensed Financial Services Provider (FSP 37473), a registered Credit Provider (NCRCP1867) and a member of the Johannesburg Stock Exchange (‘SPW’).
All reasonable steps have been taken to ensure that the information on this website is accurate. The information does not constitute financial advice as contemplated in terms of FAIS. Professional financial advice should always be sought before making an investment decision.
Participation in Sanlam Private Wealth Portfolios is a medium to long-term investment. The value of portfolios is subject to fluctuation and past performance is not a guide to future performance. Calculations are based on a lump sum investment with gross income reinvested on the ex-dividend date. The net of fee calculation assumes a 1.15% annual management charge and total trading costs of 1% (both inclusive of VAT) on the actual portfolio turnover. Actual investment performance will differ based on the fees applicable, the actual investment date and the date of reinvestment of income. A schedule of fees and maximum commissions is available upon request.
COLLECTIVE INVESTMENT SCHEMES
The Sanlam Group is a full member of the Association for Savings and Investment SA. Collective investment schemes are generally medium to long-term investments. Past performance is not a guide to future performance, and the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available on request from the manager, Sanlam Collective Investments (RF) Pty Ltd, a registered and approved manager in collective investment schemes in securities (‘Manager’).
Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. The manager does not provide any guarantee either with respect to the capital or the return of a portfolio. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in a portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Actual investment performance of a portfolio and an investor will differ depending on the initial fees applicable, the actual investment date, date of reinvestment of income and dividend withholding tax. Forward pricing is used.
The performance of portfolios depend on the underlying assets and variable market factors. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-dividend date. Portfolios may invest in other unit trusts which levy their own fees and may result is a higher fee structure for Sanlam Private Wealth’s portfolios.
All portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No. 45 of 2002. Funds may from time to time invest in foreign countries and may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. The manager may close any portfolio to new investors in order to ensure efficient management according to applicable mandates.
The management of portfolios may be outsourced to financial services providers authorised in terms of FAIS.
TREATING CUSTOMERS FAIRLY (TCF)
As a business, Sanlam Private Wealth is committed to the principles of TCF, practicing a specific business philosophy that is based on client-centricity and treating customers fairly. Clients can be confident that TCF is central to what Sanlam Private Wealth does and can be reassured that Sanlam Private Wealth has a holistic wealth management product offering that is tailored to clients’ needs, and service that is of a professional standard.