One of the most frequently asked questions from investors is “Can I use money gifted to me for an EB5 investment?”
The answer is yes, you can; however, there are certain requirements this money must satisfy in order to qualify for EB 5 visa investment opportunities. Read on to learn more.
EB-5 Program Investment Capital
When you start the EB-5 process, you’ll go through a series of steps:
- Discuss your options with Houston EB5
- Fill out Investor Questionnaire
- Submit Investment
- File I-526 Petition
You must submit an investment amount of either $500,000 (if located within a TEA) or $1,000,000. You must also submit a $50,000 administrative fee alongside your investment.
“Your I-526 petition is proof of your investment to USCIS.“
Once submitted, you can file your I-526 petition, which you should hear back on within 12-18 months.
What are the requirements my investment capital must meet?
In order to qualify as a valid investment for the EB-5 program, your capital must meet a few requirements.
All investors submitting an EB5 investment must prove Source of Funds. Providing this information means you must prove that your investment capital was gained through lawful means.
Note that some countries, such as China, have unique requirements and documentation you must submit as well. For example, in China there are Work Certificates, which are unique to that country and not found elsewhere. Keep this in mind when going through the EB-5 process.
So where can these funds come from?
Your investment capital may come from any of the following:
- Accumulation of income
- Sale of property
- Lawful business
- Divorce settlements
What are the specific requirements for gifted money?
In order for gifted money to qualify as an EB5 investment, you must pay any applicable gift taxes.
In addition, the money gifted must be an actual “arms-length” transaction, meaning it’s not a ruse. Finally, the gifted money cannot be returned after your permanent resident status is granted.
What documentation do I need to provide to prove Source of Funds?
Typically, you’ll need to provide the following for Source of Funds:
- Business tax returns
- Individual tax returns
- Employment records
- Documentation on business sales
- Proof of gifts or inheritance
- Information on securities and real estate transactions
Again, depending on your country of origin, your documentation requirements may be different. Speak with your representative at Houston EB5 to ensure you submit everything the USCIS needs.
The most common issue we see with an EB5 investment is lack of documentation on Source of Funds.
Many people try to disclose the least possible information only to have the file returned with a request for further information. It is better to provide too much information rather than too little information. In this era of terror alerts and suspicions about money laundering, USCIS adjudicators require a well-documented source of funds.
Start Your Path Towards EB5 Investment
Are you interested in EB 5 visa investment opportunities? Houston EB5, a subsidiary of DC Partners, was founded in 2010 to help international investors gain permanent residency in the U.S. in return for making a qualified real estate investment.
Call Houston EB5 at 1-281-545-7943 to get started or click the button below to contact us online.
Can I use money gifted to me for an EB5 investment? | Houston EB5 – Houston, TX