Sam Silverman is the Managing Partner of EB5AN—a national EB-5 visa firm with 2,300+ foreign investors from 60+ countries.
Not quite unlike the U.S., Canada is a leading destination for immigrants, well known for its high living standards, good economic conditions and political stability. Despite this, thousands of Canadians still choose to live and work in the U.S., with many eventually obtaining permanent residency and U.S. citizenship. While Canadians have been settling in the U.S. for a long time, the trend has seen an increase in recent years, especially post-Covid-19.
Among other immigration options, the employment-based fifth preference visa, or the EB-5 investor visa, has been a popular route for Canadian citizens to relocate to the U.S. with their families. Immigration statistics from the past decade show that the demand for the EB-5 visa from Canada was at its highest in the past couple of years. Of the total 663 EB-5 visas granted to Canadian citizens from 2014 to 2023, more than one-third were issued in 2022 and 2023, according to data from IIUSA. This indicates a growing demand for the EB-5 visa among Canadian investors. I have also witnessed this demand as a managing partner of an EB-5 firm.
Reasons For Relocating
Common reasons for Canadian nationals seeking permanent residency in the U.S. are warmer weather, education or career prospects, family reasons and other opportunities in general. However, taxes, living costs and politics are also among the reasons some Canadians have cited in their decision to move to the States, CBC reported.
Let’s talk about the taxes first. Typically, Canada has higher income tax rates than much of the U.S. Budget deficits have also contributed to increased taxation for Canadians. In comparison, many Americans pay lower income taxes than Canadians, according to a report by Fraser Institute. The U.S. government also incentivizes investment and entrepreneurship through tax cuts, which can work in favor of the business sector and attract investors from across the globe.
Touching upon other reasons for relocating, certain aspects seem to be a source of discomfort for some Canadian citizens. For example, the aforementioned CBC article interviewed one resident who was in the process of moving to Florida, and they expressed “disappointment” in Canada’s healthcare system and concerns about crime rates. The article also said they’re “looking forward to buying a more affordable home and cheaper groceries” in the U.S.
With remote working flexibility becoming a norm post-pandemic, some Canadians may also now have the opportunity to live in more affordable areas of the U.S. while working for their employers.
EB-5 Visa Popularity
The EB-5 visa is a residency-by-investment program of the U.S. that offers green cards to foreign investors and their eligible dependents. To qualify, applicants must invest a minimum amount in a new commercial enterprise, and the investment must create at least 10 permanent full-time jobs for U.S. workers.
The Reform and Integrity Act of 2022 brought decisive changes to the EB-5 process, which made the program more secure for foreign investors. A significant measure introduced by the new legislation was EB-5 concurrent filing, which allows applicants residing in the U.S. on a non-immigrant visa to apply for adjustment of status by filing Form I-485 alongside their EB-5 petition (Form I-526E).
For Canadians already living in the U.S. on a non-immigrant visa, this provision means that after filing both petitions, they may be able to continue their stay if their non-immigrant visa becomes invalid. They also become eligible to apply for work and travel permits.
Another measure brought in by the RIA is the priority processing rule for rural petitions, which has reduced the green card processing time for rural area investors. Through my company’s work, I’ve seen many of these investors not only be granted I-526E approval within a few months of applying but also receive their physical green cards in less than a year. This is an extraordinarily short EB-5 journey when compared to pre-RIA petitions facing years-long wait for adjudication. These provisions and other reforms in the program have contributed to EB-5 demand.
Considerations For Entrepreneurs
For Canadian entrepreneurs thinking about relocating to the U.S. through the EB-5 visa, there are a few key things to keep in mind. First, it’s important to fully understand the EB-5 requirements and select a low-risk project to minimize financial and immigration risks. It’s helpful to work with an immigration attorney to navigate these choices and ensure the selected project aligns with the visa requirements, as well as your unique circumstances.
If you’re planning to keep your business running in Canada while living in the U.S., there are a few extra considerations, especially when it comes to taxes and management. Cross-border tax rules can be tricky, so it’s a good idea to consult advisors to avoid double taxation and ensure compliance with both U.S. and Canadian laws. It’s also important to think about how you’ll manage your team and operations remotely, as different countries have different business regulations.
If you’re well-prepared and seek the right advice, an EB-5 visa can be a path to living and working in the U.S. By understanding these considerations, Canadian investors can make a successful transition and allow their businesses to thrive on both sides of the border.
The information provided here is not legal advice and does not purport to be a substitute for advice of counsel on any specific matter. For legal advice, you should consult with an attorney concerning your specific situation.
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