For global investors seeking to live and work in the United States, the E-2 Treaty Investor Visa offers a compelling option, especially for those looking to establish or expand a business presence. However, this visa comes with specific requirements and limitations. Below, we break down exactly how the E-2 works and how it compares to the EB-5 visa program.
What Is the E-2 Visa?
The E-2 visa is a non-immigrant visa that allows nationals of certain countries to enter the U.S. to invest in and manage a business. It provides renewable, long-term stay options but does not directly lead to a Green Card.
This visa is designed for individuals who want to own and actively operate a business in the United States. It is beneficial for entrepreneurs from countries that maintain a qualifying trade or investment treaty with the U.S.
Key Requirements for the E-2 Visa
To qualify for an E-2 visa, applicants must meet the following criteria:
1. Treaty Country Nationality
Applicants must be citizens of a country that has a trade or investment treaty with the United States. These are known as E-2 treaty countries. Examples include Türkiye, Mexico, and Germany. Citizens of countries such as China, India, Brazil, and Nigeria are not eligible.
2. Substantial Investment
There is no official minimum investment amount, but it must be considered substantial, meaning it’s significant in relation to the total cost of buying or starting the business. Generally, investments of $100,000 to $200,000 USD or more are common.
3. Active Investment
You must have already invested, or be in the final process of investing funds into the business. These funds must be “at risk”, meaning they are already committed to business expenses and not just sitting in a bank account or escrow.
4. Real and Operating Business
The investment must be made in a bona fide enterprise—this means a real, operating U.S. business that provides goods or services for profit, has employees or operations, and complies with local laws. Passive investments or shell companies do not qualify.
5. Investor Control
You must be entering the U.S. to develop and direct the business. This usually means owning at least 50% of the enterprise or holding a key managerial role.
6. Non-Marginal Enterprise
The business cannot be marginal—it must generate more than just enough income to support the investor. Ideally, it should support U.S. workers or show the potential for future job creation.
7. Lawful Source of Funds
You must prove that your investment funds come from a legal and traceable source, such as business income, property sales, savings, or inheritance.
Application Process
- Create a U.S. Business Entity – Set up an LLC or corporation in the U.S. and open a business bank account.
- Commit the Investment – Transfer funds into the U.S. and start using them for legitimate business expenses.
- Prepare a Business Plan – Provide a detailed plan showing how the business will operate, generate income, and potentially create jobs.
- File Required Forms –
- Form DS-160 – general non-immigrant visa application
- Form DS-156E – specific for E-2 investors
- Visa Interview – Attend an interview at a U.S. embassy or consulate with all supporting documentation.
Duration and Renewal
The E-2 visa is typically issued for 2 to 5 years, depending on your country of origin, and is renewable indefinitely as long as the business continues to meet visa conditions.
Limitations of the E-2 Visa
While the E-2 is a flexible option, there are significant drawbacks:
No Direct Path to a Green Card
The E-2 visa does not lead to permanent residency. If your goal is a Green Card, you will need to transition to another visa category, such as EB-5.
Requires Active Business Management
Investors must manage the U.S. business on a daily basis. This requirement can be a significant time and financial burden for those already owning successful enterprises abroad.
In many cases, investors already operate large, well-established businesses in their home country. Being required to start and actively run a new business in the U.S.—just to qualify for a visa—often leads to unnecessary complexity, divided attention, and added expense. It’s not uncommon for E-2 applicants to find that the time, staffing, and capital needed to maintain a compliant business outweigh the benefits of the visa itself.
Limited to Treaty Country Nationals
If your country is not on the E-2 treaty list, you cannot apply, even if you meet all other criteria.
EB-5 vs. E-2: Which Is Better for Long-Term U.S. Residency?
For investors focused on long-term immigration goals and permanent residency, the EB-5 Immigrant Investor Visa is often the better choice.
Unlike E-2, the EB-5 program:
- Is available to all nationalities
- Offers direct Green Card eligibility
- Requires a passive investment (no need to run a business)
- Covers the entire family, with a path to U.S. citizenship
| Feature | E-2 Visa | EB-5 Visa |
|---|---|---|
| Residency Type | Non-immigrant | Immigrant (Green Card) |
| Eligible Countries | Treaty countries only | All nationalities |
| Investment Amount | ~$100,000–$200,000+ | $800,000 (in TEA projects) |
| Business Role | Active management required | No management required |
| Green Card Path | No direct path | Direct path to permanent residency |
| Family Inclusion | Spouse and children under 21 | Spouse and children under 21 |
| Job Creation Requirement | Not required | 10 full-time U.S. jobs required |
| Renewal | Indefinite with business active | Green Card is renewable/permanent |
The E-2 visa is ideal for entrepreneurs from treaty countries who want to build and actively manage a U.S. business. However, if your goals include permanent residency, less hands-on involvement, and greater flexibility, the EB-5 visa is likely the better fit.
