Russia is attracting more and more interest as an EB-5 market and we are seeing the number of EB-5 applicants grow year over year from Russia.
However, immigration from Russia to the United States is still negligible.
This can be explained by existing conditions in the market: already open economy that is still overcoming consequences of its past.
On the one hand, Russia strived to become a modern, open economy and succeeded in becoming part of global economy, with growing real estate, consumer and financial markets.
The improved transparency of the Russian tax system has proved to be effective in ensuring greater tax compliance, therefore, increasing the prospective Russian investors' ability to demonstrate the source of their funds (a vital part of the EB-5 program process).
The privatization of the 1990s and the ensuing real estate boom of 2000s created large numbers of wealthy people, who represent potential EB-5 investors.
Moreover, there is no need to be concerned about currency restrictions because, in contrast with Korea and China, there are no limitations in Russian law on transferring funds abroad to escrow accounts or EB-5 Regional Centers and projects.
On the other hand, besides the overall improvement of economic situation in Russia, there are reasons to still be cautious when searching for investors in this great country.
The growth of the EB-5 program in Russia is being deterred by little to no marketing of the program; the short-term mentality of the typical Russian as well as the perceived risks of EB-5 investments regarding the two-year conditional status.
When you add all of this to the continuing existence of grey and corrupt source of funds; the unattractiveness of the U.
S.
taxation of the worldwide income on permanent residents; and low return on investments, at first glance the typical qualified Russian will look at other options.
Moreover, there is a high chance of a Russian EB-5 participant facing inadmissability issues being related to the so-called "Russian mafia times" of the 1990s and early 2000s.
Overall, there exist many myths surrounding EB-5 program in Russia as well as a lot of misinterpretation.
Therefore, it is vital for EB-5 consultants to educate their clients and ensure proper understanding of EB-5 investment in the U.
S.
: its requirements, benefits, and risks.
However, with all of this being said it is amazing how far relations between the United States and Russia have come in the last 20 years.
And it is refreshing to see such promising possibilities for the EB-5 program in the Russian market.
The EB-5 Investment Program was created by the US federal government in 1990.
According to this investor program, foreign nationals have an opportunity to obtain U.
S.
green card eligibility by investing $1 million (or $500,000 if the EB-5 investment is made in the project located in a Targeted Employment Area) in the USA project or company that allows either to maintain or to create at least 10 full-time jobs.
However, immigration from Russia to the United States is still negligible.
This can be explained by existing conditions in the market: already open economy that is still overcoming consequences of its past.
On the one hand, Russia strived to become a modern, open economy and succeeded in becoming part of global economy, with growing real estate, consumer and financial markets.
The improved transparency of the Russian tax system has proved to be effective in ensuring greater tax compliance, therefore, increasing the prospective Russian investors' ability to demonstrate the source of their funds (a vital part of the EB-5 program process).
The privatization of the 1990s and the ensuing real estate boom of 2000s created large numbers of wealthy people, who represent potential EB-5 investors.
Moreover, there is no need to be concerned about currency restrictions because, in contrast with Korea and China, there are no limitations in Russian law on transferring funds abroad to escrow accounts or EB-5 Regional Centers and projects.
On the other hand, besides the overall improvement of economic situation in Russia, there are reasons to still be cautious when searching for investors in this great country.
The growth of the EB-5 program in Russia is being deterred by little to no marketing of the program; the short-term mentality of the typical Russian as well as the perceived risks of EB-5 investments regarding the two-year conditional status.
When you add all of this to the continuing existence of grey and corrupt source of funds; the unattractiveness of the U.
S.
taxation of the worldwide income on permanent residents; and low return on investments, at first glance the typical qualified Russian will look at other options.
Moreover, there is a high chance of a Russian EB-5 participant facing inadmissability issues being related to the so-called "Russian mafia times" of the 1990s and early 2000s.
Overall, there exist many myths surrounding EB-5 program in Russia as well as a lot of misinterpretation.
Therefore, it is vital for EB-5 consultants to educate their clients and ensure proper understanding of EB-5 investment in the U.
S.
: its requirements, benefits, and risks.
However, with all of this being said it is amazing how far relations between the United States and Russia have come in the last 20 years.
And it is refreshing to see such promising possibilities for the EB-5 program in the Russian market.
The EB-5 Investment Program was created by the US federal government in 1990.
According to this investor program, foreign nationals have an opportunity to obtain U.
S.
green card eligibility by investing $1 million (or $500,000 if the EB-5 investment is made in the project located in a Targeted Employment Area) in the USA project or company that allows either to maintain or to create at least 10 full-time jobs.