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What is the Best Method to Transfer Funds from China to my EB-5 Investment?

February 20, 2013 @ 9:05 am
Posted by Exclusive Visas

According to a post on The Globalist website, if U.S. immigration policies allowed it, 97% of Chinese people would probably want to move to the United States.

While many may disagree with the actual statistic there is no doubt that the huge number of Chinese applying for U.S. visas through the EB-5 program indicates a huge demand from people in China to move to the U.S.

In fact, there is so much demand to come to the U.S., the Chinese have become the world’s largest group of EB-5 petitioners accounting for nearly 80 percent of the visa program’s volume. And while the EB-5 process can be challenging in and of itself, transferring money to a U.S. investment from China can pose its own set of challenges.

Chinese currency laws generally restrict exchanges for U.S. dollars to $50,000 per person per year, making it very difficult for Chinese investors to legally transfer sufficient funds to their EB-5 investments on their own.

The method most commonly used for Chinese investors to transfer money to their investment is using a trusted third party via an offshore bank account in Hong Kong. In this method an investor makes a payment to (a third party’s) mainland China account and the third party transfers its own Hong Kong-based funds to the investor’s account in the U.S. Investors electing this route must provide evidence of each deposit and transfer including an affidavit from the third party in order to trace of funds adequately.

Chinese investors also commonly use what has become known as the “friends and family” method for transferring their capital to a U.S. based EB-5 investment. Here an investor transfers $50,000 to each of ten friends who convert the funds to U.S. Dollars (the annual limit) and then transfer the money to the investor’s U.S. account.

The Investor must then trace every transfer from the investor to intermediaries, each transfer from the intermediaries back to the investor, and the transfer from the investor to the new commercial enterprise. Failure to trace every transfer along the way usually results in a red flag from the USCIS.

This is exactly where an EB-5 consultant’s advice (and management) can be crucial to the successful transfer of funds. The EB-5 consultant will guide the Chinese investor toward the transfer method most appropriate to their situation. Additionally, the consultant will manage the transfer and documentation of the myriad of transfers involved in getting the capital from China to its U.S. destination.

EB-5 consultants bring together all the elements of the program and the investment, and manage timelines to give the client the broadest probability of success. An Exclusive Visas Expert EB-5 Consultant can help to cut through the confusion for the investor by explaining how the program works generally and specifically for the Chinese candidate.

From petitioning the USCIS to helping to review a credible project, Exclusive Visas will see to it that the investor has all the trustworthy information necessary to give them piece-of-mind while making the best of the EB-5 opportunity.

The EB-5 visa program provides a door for Chinese investors to permanent US residency and citizenship. However, federal guidance, USCIS guidelines, and capital transfer issues can be vague and inconsistent due to the significant complexities associated with both investment and immigration. Having an experienced consultant navigating the process is a major advantage for EB-5 candidates.

Don’t wait another day. Click here to contact an Exclusive Visas EB-5 consultant now


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EB-5 Investor Visas - Permanent U.S. Residency with the EB-5 Program

EB-5 consultants from Exclusive Visas assist foreign investors looking for EB-5 visa options to obtain U.S. residency. Each EB-5 consultant is experienced in EB-5 investor visa procedures.

2149 N Commerce Parkway Weston, FL
Phone: (954) 727-9800