When do EB-5 applicants become subject to U.S. laws and taxes?

At some point, an EB-5 investor will become a U.S. resident for tax purposes. It is important to have expert tax advice before deciding to invest in an EB-5 project. All U.S. lawful permanent residents are subject to taxation on their worldwide incomes.

You will have to be concerned with U.S. taxation (on worldwide income, no less). From my understanding (I am not a tax attorney), entering the United States is the trigger.

Once you receive the conditional green card then you are subject as a U.S. resident to the tax code.

Ordinarily, EB-5 investors become subject to the laws and taxes of the United States once they arrive in the United States and declare domicile as permanent residents, or when they adjust status. However, those already in the United States and adjusting status may already have been subject to U.S. tax laws. In order to determine what, if any, tax regime applies in any particular case, you should consult a tax attorney or CPA.

For EB-5 applicants, a person on U.S. soil is subject to U.S. laws (and even if not on U.S. soil, one could be subject to U.S. law if the U.S. has jurisdiction). If you are in the United States and you meet the residency requirements, you would be subject to U.S. tax law. When a green card is issued, you are automatically subject to tax on your worldwide income as you are deemed a resident for tax purposes in the United States.

You will be required to file Form 1040NR for nonresident aliens if you receive any dividends from a project in a regional center or in a direct investment as part of your EB-5 investment. Generally, if the distribution is within the exempted amount, you will receive a refund from the IRS four to six weeks after filing Form 1040NR. You will be required to file Form 1040 for residents and U.S. citizens once you become a conditional permanent resident of the United States. As a conditional permanent resident, you will be subject to U.S. income taxes on your worldwide income in the same manner as lawful permanent residents and U.S. citizens. You may also be subject to FBAR filings. You should consult a tax attorney for any necessary tax and/or estate planning or a CPA in connection with required tax filings.

You should always be aware and take care not to break any U.S. laws and regulations if you are thinking about immigrating, if you have filed an immigration petition, or even after your petition is approved. You are subject to U.S. taxation once your immigrant visa is approved and you have been granted your conditional green card.

You will be subject to the U.S. tax laws the year you obtained your conditional green card as you will need to file taxes starting that year. You are subject to other U.S. laws, federal, state and local laws, such as criminal, traffic and other municipal ordinances, whenever you are in the United States regardless of your green card status. Thus, if you are in the United States visiting prior to applying for the immigration petition, you will still be subject to these laws.

Once you have been admitted to the United States, you will be subject to the U.S. laws.